The Taiwanese ocean carrier also unveiled expansion plans in Southeast Asia and the Mediterranean amid an 11.1 percent, percent year-over-year gain in transport volumes to 1.24 million TEUs for the third quarter.
Yang Ming Marine Transport Corp. recorded a net profit of 1.26 billion New Taiwan Dollars (U.S. $42 million) for the third quarter of 2017.
The Taiwanese ocean carrier’s consolidated revenues for the quarter totaled NTD 35.78 billion, skyrocketing 23.4 percent from last year’s third quarter, as volumes surged 11.1 percent to 1.24 million TEUs, thanks to higher freight rates and healthier supply and demand.
Yang Ming also unveiled on Thursday its plans for expansion in Southeast Asia and the Mediterranean.
With board approval, Yang Ming will work on a joint investment project in Indonesia with the Taiwan International Port Corp. “to develop the shipping and logistics sectors for the benefit of Taiwan-based customers and Taiwanese industries,” Yang Ming explained.
In addition, the board approved the establishment of a Mediterranean regional operating center, allowing Yang Ming to “optimize efficiency and provide customers with an integrated line haul service network in the region,” the carrier said.
During the third quarter of 2016, Yang Ming was a member of the CKYHE Alliance, which also included COSCO, “K” Line, Hanjin and Evergreen Line. However, Hanjin declaring insolvency in its native South Korea at the end of August 2016 had a domino effect on the rest of the alliance members, since they shared space with Hanjin on ships.
Hanjin’s collapse resulted in over $14 billion worth of cargo stranded at sea on 100 ships across the globe, according to Federal Maritime Commissioner William P. Doyle.
At the beginning of this April, Yang Ming began operating as part of the newly formed “THE” Alliance, which also includes Hapag-Lloyd of Germany; and “K” Line, MOL and NYK of Japan.
Plans for establishing THE Alliance were first unveiled back in May 2016, with Hanjin initially planning on being a member before filing for insolvency.
THE Alliance currently operates with 239 vessels averaging 8,764 TEUs with a total combined deployed capacity of 2.09 million TEUs across 31 services, according to ocean carrier schedule and capacity database BlueWater Reporting’s Capacity Report.
In order to prevent another Hanjin incident, THE Alliance established a $50 million contingency fund that could be used if any member carrier goes through an insolvency or financial distress.