The world depends on container shipping for import and export goods, which means business is booming for cargo logistics companies.
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2024’s first quarter numbers are in, and shipping companies are all reporting business growth. Taiwan’s Evergreen Marine Corp., Yang Ming Marine Transport Corp., and Wan Hai Lines Ltd. have all shown favorable growth, with profits exceeding previous seasons.
Yang Ming’s first-quarter consolidated revenue was NT$43.8 billion (US$1.35 billion) with a net profit of NT$9.4 billion (US$289 million), which exceeds the combined profit of all of 2023. Wan Hai has also experienced its best performance in six seasons, reporting a first-quarter consolidated revenue of NT$27.6 billion (US$851.5 million) and a net profit of NT$4.6 billion (US$141.9 million).
The business boom indicates increased demand for importing and exporting products, and with container capacity in short supply, prices for shipping are on the rise.
Business analyst Tsai Ming-chang (蔡明彰) says that, during the peak of the COVID19 pandemic, the cost of a 20-foot container reached as high as NT$660,000 (US$20,364). Now the same container costs US$6,000, which is about NT$180,000, but quotes are going up every day. Main routes are fully booked in May, and June space is already getting harder to find, even with freight prices surging.
With the value of shipping on the rise, consuming sustainable, local products is becoming even more import-ant.