Wan Hai sole Taiwan container carrier to make second quarter profit

TWO out of three leading containership lines from Taiwan posted losses in the second quarter of 2013 with Wan Hai Lines the only one to post a net profit owing to its intra-Asia focus.

Wan Hai, Taiwan's third container shipping company by fleet size, recorded a net profit of T$426.9 million (US$14.21 million) from April to June, the company said in a filing to the Taiwan Stock Exchange.

However, the second quarter results showed a decrease from a net income of T$1.34 billion in the same period last year, reported the Taipei Times.

The report said Wan Hai's focus on the Asian market and shorter intra-regional routes were key factors in helping it maintain profitability in the first half, while domestic rivals faced tougher headwinds over the same period due to their greater exposure to long-haul routes.

Wan Hai Line's net profit in the first six months of the year amounted to TWD551.78 million, sharply down from the TWD950.11 million recorded a year earlier.

As for Taiwan's two other major shipping companies, Evergreen and Yang Ming both posted second quarter losses, though both showed improvement on the first quarter results.

Evergreen Marine, the nation's largest container shipping company, posted consolidated losses of T$400.54 million in the April to June period. First half net losses amounted to T$2.24 billion, according to the company's stock exchange filing.

Taiwan's second largest container shipping line Yang Ming Marine Transport Corp recorded second quarter net losses of T$2.64 billion. First half net losses amounted to T$5.32 billion.

Yang Ming chairman Frank Lu has expressed optimism that the company might be back in the black in the third quarter, on the back of last month's hike in peak season surcharges on US routes by the top global container shipping companies.