TAIWANESE carrier Yang Ming Marine Transport Corporation has reported a net loss of US$27.17m in the first quarter of the 2020 calendar year.
The company has just held its latest meeting to approve its first quarter report.
The consolidated first quarter revenues totalled the equivalent of US$1.15bn, decreasing 1% compared with the same period of previous year.
According to the company, the first quarter result was impacted by “the recognition of loss from part of the group’s subsidiaries, including bulk business, in the amount around (US$10.95m)”.
“Coupled with the slow resumption of production after Lunar New Year, and the proactive service and space reduction plan instituted by THE Alliance in response to the COVID-19 outbreak, container business earnings were weaker than expected,” the company stated.
The overall container business performance in the 2020 first quarter showed volumes fell 4% year over year to 1.24m TEU, while fuel cost increased 5% year over year due to the implementation of IMO 2020 Low Sulphur fuel regulation.
Ocean freight, however, rose 4% over the same period last year and revenue “only slightly declined” 0.32% year over year.
“This indicates the company’s business strategy and competitiveness enhancements are effective,” the company stated. Yang Ming has announced its blank sailing plan in Q2 to mitigate the impacts of the COVID-19 pandemic.