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By Kao Shih-ching / Staff reporter
Bulk shipper Wisdom Marine Lines Co (慧洋海運) yesterday reported record pretax profit of NT$2.68 billion (US$93.15 million) for the first quarter, nearly three times larger than a year earlier amid higher freight fees.
Pretax earnings per share were NT$3.6, compared with NT$1.2 a year earlier, Wisdom Marine Lines said.
The nation’s largest bulk shipper by fleet size said that its revenue and margin rebounded after the Lunar New Year holiday.
Photo: Reuters
“Although the demand for bulk shipping in China mildly slowed in late March, as many Chinese factories suspended production amid rising COVID-19 infections, we think this was just a short-term situation and demand would recover,” Wisdom Marine Lines said in a statement.
The war in Ukraine has boosted freight fees, because crude oil prices have risen and shippers have had to take longer routes to avoid the war zone, it said.
“The impact of the war on bulk shipping remains to be seen, as it is still questionable whether countries can purchase enough commodities, such as wheat or energy, from countries other than Russia,” it said.
The impact of sanctions on Russia on bulk shipping also needs to be watched, it said.
Wisdom Marine Lines last month received a new handysize vessel with a dead-weight capacity of 37,800 tonnes, raising its fleet size to 139.
The average age of its vessels is seven years, it said.
In related news, freight forwarder Dimerco Express Corp (中菲行) yesterday reported first-quarter revenue of NT$11.4 billion, up 66 percent from a year earlier.
Revenue from its air cargo forwarding business expanded 71 percent year-on-year to NT$6 billion, while revenue from sea shipping forwarding operations rose 66 percent to NT$5 billion, Dimerco Express said.
While demand from China dropped slightly last month because of a lockdown in Shanghai, demand is expected to rebound this month, the company said.
While air cargo fees for European lines have risen because of the Russia-Ukraine war, it does not affect local forwarders much, as Taiwan’s air cargo service providers are concentrated mostly on the US and Asian markets, it said.
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