Yang Ming Reports Profitable Q2 2024 Amid Shipping Industry Disruptions, Expands Fleet for Emission Reduction Goals
Despite ongoing disruptions in the container shipping industry, Taiwanese shipping giant Yang Ming has posted a profitable second quarter of 2024 and announced further ship acquisitions aimed at meeting its emission reduction targets.
Strong Financial Performance in Q2 2024
Yang Ming’s consolidated revenues for Q2 2024 reached TWD 52.59 billion ($1.65 billion), marking a 50% increase compared to the same period last year. The company also reported an after-tax net profit of $435.6 million.
In the first half of 2024, consolidated revenues totaled $3.02 billion, up 34% from Q2 2024. Additionally, Yang Ming’s after-tax net profit for the second quarter stood at $729.82 million.
The company attributed this profitability to strong demand and rising freight rates.
Market Challenges and Strategic Response
The shipping market in 2024 is expected to see a supply growth rate surpassing demand growth by approximately 7.6%. However, the Red Sea crisis has caused vessel rerouting and port congestion, absorbing some of the overcapacity. Despite these factors, the global economic outlook remains uncertain.
Geopolitical tensions are also contributing to increased market instability. In response, Yang Ming is focusing on enhancing its service competitiveness. The company plans to optimize fleet management, improve service advantages, and address emission reduction trends.
Fleet Expansion and Emission Reduction Initiatives
Yang Ming has announced the purchase of two additional long-term chartered 11,000 TEU vessels, complementing its recent acquisition of five 14,000 TEU and three 11,000 TEU vessels. This strategic move is expected to bolster service competitiveness, streamline fleet resources, and support emission reduction efforts. The new acquisitions will also provide flexibility for future environmental retrofitting, ensuring compliance with regulatory and technical standards.
Yang Ming remains committed to its fleet optimization plan, focusing on energy-efficient and alternative-fuel-powered vessels to support the company’s mid- to long-term business development.
Investments in Sustainable Shipping
Last year, Yang Ming ordered five 15,500 TEU LNG dual-fuel containerships, which are scheduled for delivery in 2026. These newbuilds will comply with Tier III NOx regulations and meet the Energy Efficiency Design Index (EEDI) Phase 3 requirements. The dual-fuel ships will operate on LNG, very low sulfur fuel oil (VLSFO), and marine gas oil (MGO).
Earlier in 2024, Yang Ming took a significant step towards its 2050 net-zero emissions goal by adopting sustainable biofuel to power its existing fleet. This move is expected to reduce carbon emissions by approximately 20% compared to conventional fuel oil.
In April 2024, the company completed its first B24 biofuel bunkering in Shenzhen, China, with Banle Energy and PetroChina Fuel Oil providing the services for Yang Ming’s vessel YM Utility. Last month, Yang Ming’s containership YM Together was also bunkered with sustainable biofuel in South Korea. Additionally, Yang Ming, in collaboration with Banle Energy, conducted two B24 biofuel bunkering operations at Malaysia’s Port Klang in mid-July 2024.
