Officials at Yang Ming, the world’s eighth largest containerline, have dismissed the latest call for the line to merge.
Writing on LinkedIn yesterday, Lars Jensen, CEO of SeaIntelligence Consulting and widely regarded as one of the world’s top container shipping analysts, suggested Yang Ming’s continued poor financial performance made it an ideal candidate for consolidation, especially as its home, Taiwan, has more big liner companies than most places with Evergreen and Wan Hai among the top 12 global liners by capacity.
Yang Ming’s Q1 results this week recorded a net loss of $21.9m.
Looking at the total EBIT from 2012 to 2018, Jensen yesterday calculated Yang Ming had accumulated a total loss of $1bn over the seven-year period.
“This clearly must be raising questions in the Taiwanese government who owns just shy of half of Yangming,” Jensen wrote.
“With two other Taiwanese carriers performing significantly better over an extended period of time, what is the purpose of supporting a third national carrier?” the Danish analyst mused.
However, officials at Yang Ming’s headquarters told Splash today there was no discussions to merge the company. The line has had to repeatedly deny merger speculation over the past three years.
A spokesperson said the financial result in the first quarter was “better than expected”.
Going forward, the official said Yang Ming will deploy new eco-friendly vessels to optimise the fleet and lower operating costs.
The spokesperson said he was unaware of any talks with the government to merge the company with another Taiwanese liner.