Yang Ming Marine Transport Corporation (Yang Ming) has cautioned against challenges to the shipping industry as it reported the company's performance for 2023 and its outlook for the year ahead.

Yang Ming achieved consolidated revenues of NTD 140.62 billion (US$4.51 billion) and after-tax profits of NTD 4.77 billion (US$153.26 million) in 2023.

"Amidst inflation and economic growth slowdown in 2023, the overall freight levels of container shipping declined compared to 2022, which led to a reduction in Yang Ming's annual revenues," the Taiwan-headquartered ocean carrier said.

It noted that in the latter half of the year, during the challenges of the Red Sea crisis, ongoing geopolitical conflicts, and Panama Canal drought restrictions, Yang Ming's primary strategy focused on maintaining stable services, ensuring safe navigation and allowing the company to maintain a "stable performance throughout 2023."

Challenging 2024

Citing Alphaliner's latest shipping market supply and demand growth forecast, Yang Ming said the global container ship capacity supply growth rate in 2024 is projected to be 9.7% and 3% for the demand growth rate.

"With the surplus supply, the container shipping industry still remains challenging for 2024," Yang Ming said.

It added that although the International Monetary Fund (IMF) slightly raised its outlook for global economic growth to 3.1% in the latest World Economic Outlook (WEO) reported on January 30 this year, uncertainties persist due to geopolitical factors and extreme weather affecting global trade and shipping routes.

"Faced with the volatile developments in geopolitics and the shipping market, Yang Ming will remain cautious in navigating these challenges," the ocean carrier said.

"The Company will proactively adapt to market conditions by strengthening its business strategies and adjusting global service network and refining fleet planning," it added, noting that Yang Ming is also committed to identifying sustainability trends to enhance its core competitiveness and overall operational performance accordingly.