Wan Hai Q1 profit up 157pc to US$526 million, sales rise 114pc

TAIWAN's Wan Hai Line posted a 157 per cent first quarter profit increase to TWD$14

16 May 2021 - 19:00
TAIWAN's Wan Hai Line posted a 157 per cent first quarter profit increase to TWD$14.78 billion (US$526.09 million) drawn on revenues of TWD$38.62 billion, up 114 per cent.

In December 2020, Wan Hai earmarked US$360 million to buy second-hand ships and so far, the company has purchased 11.

The remarkable recovery in demand for container shipping has brought record earnings to liner operators, encouraging a newbuilding spree that has pushed the global orderbook up 17 per cent.

Besides newbuildings, Wan Hai has ordered containers from China International Marine Containers (CIMC) for US$151.88 million, to replace older boxes.

Wan Hai's 11,923-TEU Montevideo Express, one of two same-size company ships, will soon be superseded by 13,000-TEU newbuildings.

Wan Hai Lines will proceed with orders for four more 13,000-TEU neopanamaxes. Also coming on stream are 50,000 TEU in new containers, the carrier revealed.

In March, Wan Hai disclosed plans to commission nine 13,000-TEU newbuildings, and made an initial order for five vessels at Hyundai Heavy Industries.

The carrier, primarily an intra-Asia specialist, said that it had not decided where to order the other four ships, but the latest announcement indicates that Wan Hai is close to selecting the shipyard, with the vessels not expected to cost more than US$500 million in total.

The neopanamaxes would be deployed on services calling at the US west coast, the west coast of South America and other mid-haul trades.

French consultancy Alphaliner stated that Wan Hai profited from a well-timed fleet expansion, earning higher rates on more ships. Wan Hai contracted its fleet from 274,000 TEU in early 2020, to 255,000 TEU in March 2020. With the subsequent market recovery, the 11th largest liner operator expanded its fleet to 355,000 TEU by chartering and purchasing more ships.

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