Taipei, Dec.22, 2012 (CENS)--Despite supply exceeding demand amid container ships in 2013, Taiwan-based Yang Ming Marine Transport Corp. is likely to see container capacity grow 10% year on year (YoY) due to improving global economic climate, said the chairman F.H. Lu.
Lu noted that market in Europe, the U.S., and Asia each contribute 30% to Yang Ming’s revenues, with Europe remaining sluggish but likely to rebound, the U.S. under gradual recovery, and Asia predicted to grow. The carrier will expand routes in Asia in 2013.
Lu stressed that prices of container ships and freightage dictate shipper’s profitability. Fluctuating freightage in recent years is mainly due to the growth of investment-oriented ship owners, who accounted for 40% of shipping market in 2005 but 51% currently.
Investment-oriented ship owners still place more than 30% of shipyard orders, but is estimated to decline to under 30% in the future and help stabilize shippers’ profitability, said Lu.
Yang Ming’s revenues in the first 11 months grew 8% YoY to NT$97.676 billion (US$3.26 billion), with NT$2.493 billion (US$83.1 million) in net loss, which was offset by the carrier’s subsidiary Kao Ming Container Terminal Corp. (KMTC) having gained NT$1.806 billion (US$60.2 million) from investment in China. Lu indicated the shipper still aims to gain profits in 2012.
Market demand will grow due to recovering global economy, and the carrier’s container capacity will grow 10% YoY to improve revenues further, said Lu.
(by Andrew Wang)
