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Taiwan's top three ocean liners see revenues plunge in Q3 dragged down by rates

TAIWAN's top three shipping lines, Evergreen Marine, Yang Ming Marine Transport Corp. and Wan Hai Lines, experienced sharp declines in revenue in the third quarter after steady first and second quarters, pulled down by a sharp decline in average freight rates.

Evergreen achieved a profit of US$48 million in the first quarter, then lost $5 million in the second and lost $76 million in the third. Yang Ming was $10 million up in the first quarter, flat in the second and down $133 million in the third, reported IHS Media.

However, Wan Hai managed to stay in the black after recording a first quarter profit of $66 million profit, but its profit shrunk to $35 million profit in the second quarter and to $33 million in the third quarter, according to Alphaliner data.

During the July through September period the operating profits of the Taiwanese shipping lines were dragged down by declining average freight rates that not even record low oil prices could offset.

Evergreen's revenue fell 12 per cent compared to the third quarter of 2014, and even though container volumes rose two per cent to 1.165 million TEU, it was nowhere near enough to correct a decline in average freight rates of 18 per cent.

At Yang Ming, revenue was down during the third quarter, volumes decreased by three per cent and average freight rates dived 20 per cent compared to the third quarter of 2014.

Wan Hai was in profit by the end of the third quarter because of "exceptional income items" but among the Taiwan carriers, it was hit the hardest by rate reductions. Container volumes increased by four per cent to 883,889 TEU in the third quarter, but average freight rates plummeted 24 per cent during the period.