The nation’s three major container shippers reported falling revenue and profit in the third quarter of this year, as economic uncertainty, geopolitical risks and tariff-induced global trade distortions affected transportation demand and freight rates, the companies said.
Container shippers also face challenges in operations and cost controls as stricter environmental regulations, such as the EU Emissions Trading System and FuelEU Maritime, together with more decarbonization requirements, accelerate the need to phase out older vessels and renew fleet, the companies said.
Photo courtesy of Evergreen Marine Corp
Evergreen Marine Corp (長榮海運) posted earnings per share (EPS) of NT$10.04 in the September quarter, down from NT$28.75 a year earlier, the nation’s largest container shipping company in terms of fleet size said in a regulatory filing yesterday.
However, Evergreen's EPS exceeds the market consensus estimate of NT$8.22, and is better than its two domestic rivals’, whereas Yang Ming Marine Transport Corp (陽明海運) reported EPS of NT$1.73 and Wan Hai Lines Ltd (萬海航運) earned NT$4.15 a share.
Last quarter, Evergreen's revenue fell 36.57 percent year-on-year to NT$96.92 billion (US$3.12 billion) and net profit dropped 64.88 percent to NT$21.75 billion, the company said.
In the first three quarters of this year, the company's cumulative revenue fell 15.64 percent year-on-year to NT$293.38 billion, and total net profit decreased 44.77 percent to NT$60.06 billion, with EPS of NT$27.74.
Looking ahead, the company said it aims to adopt a diversified market strategy and accelerate fleet optimization and replacement plans to deliver stable and long-term value for all of its shareholders.
Yang Ming, the nation’s second-largest container shipping company, said last quarter's EPS of NT$1.73 was down from NT$8.12 a year earlier.
Third-quarter revenue dropped 42 percent to NT$42.09 billion, and net profit plunged 78.6 percent to NT$6.05 billion, the company said.
During the first three quarters, cumulative revenue fell 25 percent to NT$126.27 billion and total net profit dropped 71.32 percent to NT$14.81 billion, with cumulative EPS of NT$4.24, it said.
"Compared with the same period in 2024, weaker freight rates resulted in softer profitability," Yang Ming said in a press release.
For this quarter, Yang Ming said the temporary pause in US–China tariff tensions may help stimulate pre-Lunar New Year shipment demand on Trans-Pacific routes.
The Intra-Asia and Middle East markets are also expected to remain steady, supported by stable demand, the company said.
Nevertheless, ongoing Red Sea disruptions and Cape of Good Hope rerouting, along with port congestion in Europe, may continue to affect capacity deployment, Yang Ming said, adding that it would continue to closely monitor market developments and respond with agility through service-network optimization and operational adjustments.
Wan Hai's net profit in the third quarter fell 36.8 percent to NT$11.64 billion from a year earlier, while total net profit in the first three quarters declined 38.05 percent to NT$21.45 billion, which translated into EPS of NT$7.64 over the period, the company reported on Tuesday.
Third-quarter revenue dropped 35.72 percent to NT$35.03 billion and cumulative revenue in the first three quarters lost 11.06 percent to NT$106.97 billion, it said.
Wan Hai said the narrowing gap between supply and demand is expected to drive a gradual market recovery next year, providing a more supportive environment for the shipping industry.
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