Liner operators should not be too confident that Q2 will be any better than Q1, despite the Red Sea crisis absorbing the tonnage overhang, said Yang Ming chairman Cheng Cheng-mount this week.
Mr Cheng, who is also chairman of the Taipei Shipowners’ Association, told its members: “The rerouting of ships round the Cape of Good Hope has merely distracted attention from structural overcapacity. Furthermore, market risks, such as China’s real estate and economic problems, the uncertainty of the US Federal Reserve’s interest rate cuts and the Russia-Ukraine war, have not disappeared.”
Q1 24 results not declared
Yang Ming has not yet released its Q1 24 results, but data from the Taiwan Stock Exchange shows cumulative revenue of TW$43.8bn ($1.37bn) in the first three months, up 16% from Q1 23, as freight rates rose amid the Red Sea crisis.
Shippers became more decisive
While Evergreen had indicated recently that shippers had become more decisive in signing long-term transpacific shipping contracts, ahead of two rounds of GRIs this month, Mr Cheng declined to discuss contractual commitments at Yang Ming, citing business sensitivity.
He explained: “The market can fluctuate dramatically and it’s difficult to predict freight rates each month. We can only deploy ships according to market demand and try to meet our customers’ needs.”
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Source : Loadstar
