Taiwanese container line Wan Hai, within Asia Wan Hai Lines reports operating losses of TWD 3.2 billion (USD 103.7M) for the first quarter of 2023, following net losses in the previous quarter.
The Taipei – based line ‘s revenue fell to TWD 25.5 billion in January – March , a 68 % drop from TWD 80.5 billion reported for the same period in 2022. The rapid collapse in revenue has pushed the company’s revenue below the cost of operating its fleet.
It is the first major line to go into the red at an operational level since the start of the pandemic. HMM reported a small operating loss in the first quarter of 2020. Costs have been growing rapidly for Wan Hai with the delivery of more than 100,000 TEU in newbuild tonnage in 2020-2022.
As a result, operating costs reached TWD 27.4 billion in the first quarter of 2023. This compares with an equivalent figure of TWD 19.5 billion in the first quarter of 2021. The Taiwanese line, which diversified into services trans-Pacific during the pandemic, it will receive another 174,000 TEU in 2023, including 10 ships of 13,000 TEU from Samsung Heavy Industries and Hyundai Heavy Industries.