Yang Ming sees Q3 loss swell to US$42m on operating revenue of $1.22b
TAIWAN's Yang Ming Marine Transport Corp suffered a third quarter loss after tax of NTD1
TAIWAN's Yang Ming Marine Transport Corp suffered a third quarter loss after tax of NTD1.29 billion (US$42.28 million) compared to a loss of NTD804 million last year, on Q3 operating revenue of NTD37.78 billion, down from NTD38.72 billion NTD a year earlier.
The shipping line moved 1.44 million TEU in the third quarter, representing a year-on-year increase of two per cent.
The company said it is now optimising operating costs with new containerships and the redelivery of chartered vessels. It has redelivered 13 of its high-cost chartered vessels and plans to redeliver another five ships in 2020, reported American Shipper.
In anticipation of the US-China trade row continuing and the consequential shift in the global supply chain, the carrier said it will further optimise its intra-Asia service network.
The company said a strategic decision not to exercise options with respect to certain formerly chartered vessels impacted its third quarter results.
'By opting out, the company incurred obligations under the charter parties, which were then recorded as potential impact as mandated by the International Financial Reporting Standards. The potential effects of the arrangement were estimated at NTD1.39 billion and lowered Yang Ming's third quarter results, which otherwise would have showed a profitable quarter.
'Nevertheless, Yang Ming's cash flow and operations were not affected, and the company continues to see encouraging results.'
It added: 'The container shipping market remains vulnerable to trade uncertainties and geopolitical tensions. It is unclear the extent of potential impact those tensions and uncertainties will have on demand. Despite unpredictable market conditions, Yang Ming has improved its volume and revenue largely due to the efforts of business strategy and competitiveness enhancements.'