Tommy Hsieh, General Manager of Wan Hai Lines, recently stated, "Trump's policies will have significant impacts on container shipping volumes and supply chains, especially regarding decisions on U.S. import/export tariffs and labor disputes. Wan Hai is actively preparing for another strong year."

Tariff Impacts

Trump’s announcement of tariffs on imports from Mexico, Canada, and China has led businesses to accelerate purchases ahead of the tariff implementation. This behavior directly impacts global shipping volumes, particularly in container transportation.

Labor Disputes

Additionally, Trump’s support for the International Longshoremen’s Association's opposition to automation at U.S. East Coast ports may increase the risk of strikes, particularly the potential resumption of strike actions on January 15. This could disrupt shipping schedules and exacerbate container shortages.

Port Congestion

Tommy Hsieh highlighted the increasing deployment of large vessels, which has worsened port congestion. "As ships grow larger, ports struggle to handle them, leading to extended unloading times. This year alone, vessels in Singapore face four to five days of waiting time, while in Shanghai and Ningbo, the wait is three to four days and one to two days, respectively."

Freight Rates to Stay High

He further explained that the diversion of vessels around the Cape of Good Hope is occupying almost all available ships, intensifying the vessel shortage and driving freight rates higher.

"Container ship charter rates have doubled since last year, reflecting the shortage of ships," Hsieh noted. "Only 0.3% of the global container fleet is idle, an unprecedented low in history."

Strong Financial Performance

Hsieh added, "The market in 2024 has exceeded our expectations, especially due to the Red Sea crisis, which drove freight rates much higher than in 2023, despite earlier pessimistic forecasts."

In the first nine months of 2024, Wan Hai Lines reported a 60% year-on-year increase in revenue, reaching NT$120.27 billion (approximately USD 3.8 billion). Net profit surged to NT$34.63 billion (approximately USD 1.1 billion), a stark turnaround from the NT$1.9 billion (approximately USD 58.9 million) net loss during the same period last year.