Yang Ming Marine Transport Corporation (Yang Ming) noted uncertainties in the shipping industry for 2023 amid a global slowdown in economic activity after reporting historic profits in 2022.

The Taiwan-based global carrier said in a report that it set a new record by achieving consolidated revenues of NTD 375.9 billion (US$12.61 billion) and after-tax profits of NTD 180.6 billion (US$6.06 billion).

"Yang Ming delivered a strong performance in 2022, driven by strong demand and high average freight rates in the container shipping market. However, since Q4 of the same year, purchasing power has been diminished by inflation and high inventory levels," the shipping line said.

Citing Alphaliner's latest forecast, Yang Ming noted that an oversupply in the container shipping market is expected in 2023, with an 8.2% growth in capacity and a 1.4% growth in throughput.

On the other hand, it cited how the International Monetary Fund (IMF) in January raised the global economic growth forecast for 2023 to 2.9%, which is higher than last year's October forecast.

"This indicates a potential improvement in economic activity," Yang Ming said, pointing out that as China lifts restrictions and gradually reduces inventory, it might also stimulate overall economic activity.

"These factors are likely to create a relatively positive environment for the shipping industry in H2 of the year," the shipping line said.

Moreover, Yang Ming noted that the International Maritime Organization's (IMO) Carbon Intensity Indicator (CII) — which has been effective this year — might help balance supply and demand as carriers may implement slow steaming, ship retrofitting, and older vessel retirement to reduce carbon emissions.

"Despite the aforementioned factors, the container shipping industry still faces uncertainties due to ongoing global inflationary pressures and geopolitical risks," the ocean carrier said.

Yang Ming noted that it would continue strengthening its business strategy by exploring new business opportunities, optimizing its cargo structure and improving space utilization to navigate the evolving shipping industry.

Additionally, the Company will prioritize customer satisfaction by optimizing its service network and enhancing digital services.