Shipping companies: There is little hope for the recovery of the container industry in 2024

Su said the U.S. and European economies remain bearish, which will continue to weigh on consumer spending.

In the second quarter of 2023, Yangming reported a net loss of $4.27 million, compared to a net profit of $1.93 billion in the second quarter of 2022.

When asked about capacity adjustments, Su replied that Yang Ming is studying how to adjust the company's service routes. "The first half of 2013 was a mixed performance across routes," it said. Rates on trans-Pacific routes adjusted faster in the first half of the year, but also rebounded in the third quarter of 2023. Shipments before the National Day holiday were lower than expected, and there was a supply-demand imbalance in the third quarter of 2023."

"We are not optimistic about the traditional low season in Europe and the United States in the fourth quarter of 2023. Only by observing the trend of supply and demand can we adjust the route. There are now 11 ships deployed on a route, whereas before there were 10 ships on a route, "he explained, alluding to the increasing reliance on slowing down to absorb additional ship capacity.

He noted that freight volumes in the third quarter were higher than in the first half of 2023, but downward pressure on freight rates remains due to economic weakness in the United States and Europe. It added: "The market needs further monitoring as exports from Asian economies weaken due to weak global demand and even intra-Asian route rates are falling."

In January, Yangming placed an order with Hyundai Heavy Industries for five 15,000-TEU vessels to be delivered in 2026, adding that the fleet's capacity would remain stable until then. "There will be no ship deliveries until these five new ships are delivered and there are no plans to decommission the old ships."

"However, according to industry observations, if there is a shortage of labor and raw materials, the overall time for the delivery of new ships will be delayed and the scrapping of old ships will accelerate." "He said.