Yang Ming announces 2024 financial report

Yang Ming Marine Transport Corporation (Yang Ming) convened its 401^st Board Meeting today (12^th) and approved the Company’s financial statements for fiscal year 2024. For the year, Yang Ming reported consolidated revenues of NTD 222.71 billion (USD 6.94 billion) and a net profit after tax of NTD 64.18 billion (USD 1,999.35 million), resulting in earnings per share (EPS) after tax of NTD 18.38. The Company delivered strong operational performance and profitability throughout the year. The Board also approved a cash dividend distribution of NTD 7.5 per share.

In 2024, the container shipping industry experienced a net capacity increase of approximately 3 million TEUs, leading to supply growth outpacing demand. Amid this challenge, factors such as vessel rerouting due to the Red Sea crisis and congestion at key ports helped absorb excess capacity. Additionally, the robust economic performance of emerging Asian markets contributed positively to global economic growth. The first three quarters of 2024 were marked by favorable market conditions with rising cargo volumes and freight rates. In response to these dynamics, Yang Ming proactively optimized its service network and fleet deployment, ensuring service reliability and capitalizing on market opportunities to enhance operational performance. Considering the Company’s full-year profitability, future fleet renewal plan, and the ongoing uncertainties in the global trade environment, the Board has approved a cash dividend of NTD 7.5 per share to uphold financial stability and long-term sustainability.

Looking ahead, the International Monetary Fund’s (IMF) January 2025 World Economic Outlook (WEO) projects a global economic growth rate of 3.3% for 2025. On the supply side of the shipping sector, Alphaliner's latest analysis forecasts a 5.7% increase in shipping capacity and a 2.5% growth in demand for 2025. However, significant uncertainties continue to affect the global trade outlook. Key risk factors include U.S. tariff developments, which may lead to potential inflationary pressures due to rising operational costs and impact economic growth and trade activities. Meanwhile, the recent halt of the Israel-Hamas ceasefire agreement has increased uncertainties regarding carriers resuming operations in the Red Sea. Most carriers continue to reroute via the Cape of Good Hope to mitigate security risks. Drewry’s January report suggests that once transit routes through the Red Sea resume, carriers may accelerate the scrapping of older tonnage to align with normalized demand. Moreover, with the European Commission’s Fit for 55 initiatives implementing the EU Emissions Trading System (EU ETS) for shipping in 2024, carriers are required to submit carbon allowances based on their vessels' CO₂ emissions. With the commencement of FuelEU Maritime in 2025, carriers face the challenge of meeting GHG intensity thresholds or paying penalties. The regulation sets lifecycle greenhouse gas (GHG) emission intensity standards for marine fuels, with progressively stricter thresholds every five years. Furthermore, the International Maritime Organization (IMO) is considering a GHG emissions levy on the shipping industry starting in 2027, highlighting the need for a transition to sustainable fuels.

In response to the evolving geopolitical landscape and global supply chain challenges, Yang Ming reaffirms its commitment to strengthening its core business, enhancing existing alliances, and exploring new collaborative opportunities. The Company is accelerating its regional route strategy and penetrating emerging markets to refine its global service network. Concurrently, Yang Ming continues to optimize fleet deployment to improve operational efficiency. Following the Board’s internal review of environmental regulations and the development of alternative energy technologies, the Company has advanced its vessel optimization plan for deploying up to thirteen vessels. The plan includes up to six 8,000 TEU-class dual-fuel-ready vessels and up to seven 15,000 TEU-class LNG dual-fuel-fitted vessels. This deployment is expected to strengthen Yang Ming’s core business, mitigating energy risks across the fleet, and maintain flexibility in future vessel types and fuel options. Through various strategic initiatives, Yang Ming aims to enhance its overall competitiveness while delivering efficient, sustainable, and secure services to its global customers.