Taiwan's Evergreen, Yang Ming suffer combined loss of US$580 million


TAIWAN's top two shipping lines Evergreen Marine and Yang Ming both suffered hefty losses in the first nine months of 2016, after their combined loss ballooned to US$580 million, albeit an improvement on a quarterly basis.

Effectively, Evergreen's profit fell off a cliff with a decline of 81 per cent to clock up a loss of $173 million, on revenue of $2.8 billion, down 15 per cent compared to the January to September result the previous year. 

Yang Ming fared worse, after recording a third quarter loss of $142 million, with July-September revenue declining 13 per cent to $908 million, according to a filing to the Taiwan stock exchange.

From January to September, the container line's revenues dived 17 per cent year on year to $2.6 billion, which dragged Yang Ming to a $407 million loss for the first nine months of 2016.

The carriers are far from alone in the quagmire. Drewry predicts combined container shipping industry losses in 2016 to be in the range of $5 billion and $10 billion.

Evergreen's third quarter consolidated revenue decreased by three per cent to $1 billion, and recorded a quarterly loss of $50 million, although the result was a significant improvement on the $80 million loss in the same period last year.

A spokesman for Evergreen Marine told IHS Media said that a comparison of the company's monthly consolidated revenues indicated an improving trend in the first nine months of 2016. He noted that third quarter revenues were better than the $930 million of the second quarter, which also surpassed the $890 million in the first three months of 2016.

The Evergreen spokesman said that in order to cope with market challenges, the company was continuing its efforts to improve competitiveness and operating outcome. "With the ongoing fleet renewal programme, we can further optimise our vessel fleet," he said.

Source: Schednet

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