Shipping Companies: Little Hope For The Recovery Of The Container Transportation Industry in 2024

    Yang Ming Shipping CEO Peter Su stated at yesterday's press conference that the peak season in the third quarter of this year was "disappointing" and the company does not expect any improvement in 2024.
    Peter Su stated that the economies of the United States and Europe remain bearish, which will continue to affect consumer spending. In the second quarter of 2023, Yangming had a net loss of $4.27 million, while its net profit in the second quarter of 2022 was $1.93 billion.
    When asked about capacity adjustments, Peter Su replied that Yangming was studying how to adjust the company's service routes. The performance of various routes in the first half of 2013 was mixed. In the first half of this year, interest rates on the Trans Pacific route adjusted faster, but there was also a rebound in the third quarter of 2023. The shipment volume before the National Day holiday was lower than expected, and there was an imbalance between supply and demand in the third quarter of 2023
    We are not optimistic about the traditional off-season in Europe and America in the fourth quarter of 2023. Only by observing supply and demand trends can we adjust our routes. Currently, 11 ships are deployed on one route, compared to 10 ships on the previous route, "he explained, implying an increasing reliance on slowing down to absorb additional ship capacity. He pointed out that the freight volume in the third quarter was higher than in the first half of 2023, but due to the weak economies of the United States and Europe, downward pressure on freight rates still exists. It added: "Due to weak global demand, Asian economies' exports have weakened, and even intra Asian airline rates are declining, so the market needs further monitoring
    In January of this year, Yangming ordered five 15000 TEU ships from Hyundai Heavy Industry, which will be delivered in 2026, and added that the fleet's capacity will remain stable until then. Before the delivery of these 5 new ships, there will be no delivery of any ships, and there are no plans to retire the old ships.
    However, according to industry observations, if there is a shortage of labor and raw materials, the overall delivery time of new ships will be delayed, and the scrapping of old ships will accelerate, "he said.