Bullish Wan Hai, unfazed by US port fees, reports record profits

Wan Hai Lines GM Tommy Hsieh is positive about achieving higher transpacific contract rates this year.

Yesterday, following the unveiling of the Taiwanese operator’s 2024 results, Mr Hsieh said with the breakdown of the Israel-Hamas ceasefire, diversions round the Cape of Good Hope would continue.

He added: “Freight rates are lower today because demand is sluggish. As long as demand recovers, the shortage of shipping supply will still surface.

“Based on our discussions with customers, they can accept an upward adjustment of 20% to 30%.”

Wan Hai’s revenue rose 61% year on year, to $4.93bn last year, bringing a record $1.44bn net profit, following a $175.5m loss in 2023.

Drewry estimates container shipping supply will rise 4.9% this year, compared with 2.8% for cargo demand.

Mr Hsieh said: “The uncertainty of trade policies continues to affect the imports and exports between countries and regions. We will review movement in market demand to adjust our routes and vessel deployment.”

He also allayed concerns about US president Donald Trump’s plan to impose hefty port charges on operators with Chinese-built ships. Mr Hsieh said: “Just 10% of Wan Hai’s fleet was built in China, and these are mainly assigned to our intra-Asia services. The company does not deploy any Chinese-built ships on its transpacific services.”

He added that Wan Hai would take delivery of three 13,000 teu ships this year and will use these to expand its long-haul routes.

Between 2026 and 2030, Wan Hai will take delivery of 30 newbuildings, comprising eight of 16,000 teus, 20 at 8,700 teu, and two 7,000 teu ships, indicating the carrier’s bullishness on the long-term prospects.

However, none of these vessels is under construction in China, the orders being spread around shipyards in South Korea, Japan, and Taiwan’s CSBC.