21.5 C
Hamburg
Friday, July 12, 2024
Home News First quarter profits surge as TS Lines eyes new ships

First quarter profits surge as TS Lines eyes new ships

Controlling costs and adding services on routes with growing demand were behind the reasons to TS Lines’ 170% year-on-year increase in profits, according to the intra-Asia carrier’s chairman Chen Te-sheng.

The Taiwanese operator has reported profits of TW$650 million (US$21.49 million), achieved by responding to challenging conditions, caused by Covid-19, that the company withdrew from the US trades and concentrated on operating intra-Asian and Asia-Australia routes. Chen said the company further reduced costs by redelivering chartered vessels that were deployed on withdrawn services.

The leased fleet increased the flexibility of the company’s operations. While owning a certain percentage of newly-built own ships, with high fuel efficiency, allows the company to reduce costs further.

Chen said that there is a silver lining in the pandemic, as oil prices collapsed to an 18-year low, resulting in low-sulphur fuel oil becoming cheaper. This meant compliance with the International Maritime Organization’s emissions cap was more affordable.

“Oil prices fell sharply in March. As the fuel surcharge was calculated based on the oil price of the previous quarter, when our actual bunker costs fell, the company's profit increased,” explained Chen.

Cargoes to and from India and the Philippines declined, during the Q2, but TS Lines added services to Thailand and Vietnam, where cargo demand remained strong. Consequently, the carrier’s operating profit for Q2 2020 is forecast to be TW$700 million (US$23.63 million).

Chen said, “We’ll continue to acquire vessels and commission newbuildings. Three years ago, we aimed to own five vessels. At the time, we operated 36 vessels. Today, we’re operating 46 ships, including 12 owned vessels. Another three are under construction. Today’s newbuildings are fuel-efficient, but it takes two years for a vessel to be built. If there are suitable pre-owned ships in the market, we’ll consider second-hand purchases.”

Martina Li
Asia Correspondent





Latest Posts

Wärtsilä simulators to aid Wavelink Maritime Institute in sustainable fuel training

Wärtsilä has provided its latest dual-fuel engine simulator technology to Wavelink Maritime Institute (WMI), the training division of the Singapore Maritime Officer’s Union (SMOU). These...

Maersk Air Cargo becomes first Danish airline with Boeing 777

Maersk Air Cargo (MAC), operating under A.P. Moller–Maersk, received its first of two new Boeing 777F aircraft, marking a historic milestone as the first...

NCL backs ammonia power with vessel orders

Norwegian regional operator North Sea Container Lines (NCL), which already ordered an ammonia powered vessel at the end of last year, has ordered a...

APM Terminals Mumbai shifts to 80% renewable electricity

APM Terminals Mumbai (GTI) has transitioned to 80% renewable electricity this month by commissioning a 10.65 MW captive solar power plant under a Power...

Port of Klaipeda plans new cruise ship terminal

Screening procedures to evaluate the potential environmental impacts have been completed as the Port of Klaipeda plans to build a new cruise ship terminal...