Despite prolonged disruptions in the container shipping industry, Taiwanese shipping company Yang Ming has reported a profitable second quarter of 2024 and unveiled further ship acquisitions to meet its emission reduction targets.
The consolidated revenues in Q2 stood at TWD 52.59 billion ($ 1.65 billion), up by 50% from the corresponding quarter last year.
The company’s after-tax net profit came to $435.6 million, respectively.
For the first half of 2024, the consolidated revenues reached $3.02 billion, up by 34% from Q2 2024. What is more, Yang Ming’s after-tax net profit stood at $729.82 million in the second quarter of this year.
As explained, the profitability was driven by strong demand and increased freight rates.
The shipping market is forecasted a supply growth rate exceeding demand growth by about 7.6% in 2024. However, Red Sea crisis has led to vessel rerouting and port congestion, which has absorbed part of the overcapacity. Nevertheless, the world economic situation remains precarious.
Recent geopolitical tensions may also contribute to growing instability. In response to the volatile shipping market, Yang Ming said it is committed to enhancing its service competitiveness. The company aims to strengthen its fleet management by optimizing fleet resources, improving service advantages and addressing emission reduction trends .
To this end, Yang Ming has decided to purchase two long-term chartered 11,000 TEU vessels, next to the previously acquired five 14,000 TEU and three 11,000 TEU vessels.
The acquisition, expected to strengthen service competitiveness and streamline fleet resources, will help address emission reduction requirements and provide flexibility for future environmental retrofitting needs , ensuring compliance with regulatory and technical standards, according to Yang Ming.
“Yang Ming will continue its fleet optimization plan with energy-efficient and alternative-fuel-powered vessels to support the Company’s mid- to long-term business development,” the company said.
Last year, the company ordered five 15,500 TEU LNG dual-fuel containerships. Slated for delivery in 2026, the newbuilds will be compliant with Tier III NOx regulations and meet the Energy Efficiency Design Index ( EEDI ) Phase 3 requirements. The dual-fuel ships will run on LNG, very low sulpfur fuel oil (VLSFO) and marine gas oil (MGO).
Earlier this year, Yang Ming decided to adopt sustainable biofuel to power its existing fleet, in response to the 2050 net-zero emissions goal. By embracing biofuel, Yang Ming wants to achieve a substantial reduction of approximately 20 percent in carbon emissions compared to conventional fuel oil.
In April 2024, the company completed its inaugural B24 biofuel bunkering supply in Shenzhen, China, when Banle Energy, in collaboration with PetroChina Fuel Oil, arranged B24 biofuel bunkering services for Yang Ming’s vessel YM Utility.
Last month, Yang Ming’s containership YM Together was bunkered with sustainable biofuel in South Korea.
The company also performed, together with Banle Energy, two B24 biofuel bunkering operations at Malaysia’s Port Klang in mid-July 2024.