Despite the correction in freight rates, Wan Hai Lines’ general manager, Tommy Hsieh, is optimistic about container shipping’s profitability into 2025, reports The Loadstar.
Shipping alliance
He also revealed that the carrier had been invited to join a shipping alliance—but he did not say which one.
On Thursday, after Wan Hai’s H1 24 results, Mr Hsieh said the looming threat of industrial action in US East Coast ports would also increase demand for shipping as shippers would divert containers to the US West Coast.
Wan Hai’s net profit for H1 was some $498m, improving on a net loss in the year-ago period.
He said: “The current focus of the shipping industry is the new round of labor contract negotiations between the US East Coast port workers’ union, the International Labor Association (ILA), and the possibility of a strike on 1 October.
“While freight rates have corrected, there’s likely to be a cargo rush before the Golden Week holiday in China starts, also on 1 October. US retailers can change the discharge port to the west coast, then move the containers to the east through inland transportation, or wait and see before making a decision. Liner operators will adjust routes to respond to customers’ needs.”
Mr. Hsieh added that, as Israel’s conflicts with its neighbors persisted, the Red Sea crisis was unlikely to end this year, and so ships would continue moving around the Cape of Good Hope.
Mr Hsieh said he was confident that US consumer spending would rise, as the US Federal Reserve was inclined to cut interest rates.
On speculation that Wan Hai could join THE Alliance after it lost Hapag-Lloyd in February, Mr Hsieh disclosed that the Taiwanese operator had been invited to join a shipping alliance, but did not reveal which one.
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Source: The Loadstar
