TAIPEI (Taiwan News) — Taiwan’s container shipping companies reported strong second-quarter profits Wednesday as an earlier-than-usual peak season helped support freight rates.
Yang Ming Marine Transport Corp. posted net profit of NT$5.7 billion (US$178.2 million) for the second quarter, up 4.82-fold from the same period a year earlier. Wan Hai Lines Ltd. reported net profit of NT$11.5 billion, up 9.71-fold year-on-year, according to CTEE.
Wan Hai said continued instability in the Middle East has disrupted some shipping routes and pushed up fuel costs, while congestion at several major ports has reduced available shipping capacity. The tighter supply has helped keep container shipping rates high, with the Shanghai Containerized Freight Index (SCFI), a key measure of shipping rates, remaining well above its level at the beginning of the year despite recent fluctuations.
Rates for shipments to the US have been particularly strong, while a shortage of available vessels has provided further support for prices.
Looking ahead to the third quarter, Yang Ming said European and US routes are entering their traditional peak season. Higher shipment volumes are expected to provide further support for the market.
At the same time, port congestion could pose a challenge to shipping operations. Major ports in Shanghai and Europe experienced heavier congestion in the second quarter due to weather, a temporary increase in shipments, and operational bottlenecks.
Yang Ming said it remains unclear whether the situation will improve in the third quarter.
With US tariff policies becoming clearer and supply chains gradually returning to normal, Wan Hai expects the market to strengthen toward the fourth quarter. Holiday-season restocking and inventory replenishment are expected to provide further support for freight rates and shipping volumes.
