Yang Ming suffers volume drop with 10.9% year-on-year
Yang Ming has announced its Q3 2020 financial results. Its consolidated revenues for the third quarter totalled $1.3bn, up 2.8% from the same period of last year. Business volumes were down by 10.9% year-over-year to 1.28m TEUs.
Yang Ming’s profit after-tax for the third quarter reached $91.69m. The decline in volume was mainly due to the market uncertainty caused by the COVID-19 pandemic.
Since mid-August, lockdown restrictions have been gradually lifted following signs that the virus spread might be slowing. In light of this, the inventory build-ups across the supply chains in the US and Europe have returned.
Lockdown measures have profoundly impacted consumer behaviour, accelerating the shift to e-commerce, further increases the needs for hygiene products and home improvement materials, including housewares, home office accessories, exercise equipment, subsequently lead to a rebound in container shipping demand and boosted freight rates.
Yang Mings after-tax profit reported $ 62.01 million in 2020 after three quarters
For the first three quarters of 2020, Yang Ming’s consolidated revenues totalled $3.53bn. Year-to-date business volumes were 3.66m TEUs. The after-tax profit for the first three quarters improved by 155.7% year-on-year to $62.01m.
In the last quarter of 2020, this positive trend tends to continue. Yang Ming has prepared itself to meet the needs of respective trade lanes. Looking into 2021, analyst firm Alphaliner projected the annual capacity growth at 3.0% and global throughput growth at 3.3%, suggesting a positive sign for the next year.
Despite this, the outlook of container shipping remains clouded in uncertainties over the possible comeback of COVID-19 pandemic and US-China trade conflicts. Yang Ming has set financial stability as its priority to ensure steady profitability and sustainable customer service in the future.
Source: Yang Ming