News / Taiwan carriers pay record staff bonuses after year of bumper profits

15/03/2023

Following an historically high profit of $6.06bn, Yang Ming has trumped its compatriot carriers Evergreen and Wan Hai in related bonuses.

Although, adding a 2022 year-end bonus to profit-related remuneration for its staff, Evergreen still outperforms Yang Ming overall.

At Yang Ming, around $76m has been set aside for bonuses and each employee at Yang Ming will receive $43,700, which for some could be equivalent to more than two years’ salary.

This exceeds the $63m Evergreen has earmarked for bonuses, which average $20,907 per employee. The largest of the Taiwanese container lines, it achieved a $10.9bn net profit last year, up 40% from 2021, and a dividend of $2.28 per share will be paid to shareholders.

However, with the year-end bonus, Evergreen outperforms Yang Ming. According to the 2022 financial statements, Evergreen employees received at least 60 months of bonuses in total.

Meanwhile, Wan Hai recorded a $3.03bn net profit in 2022, down 10% from 2021, and incurred a loss in Q4. The carrier has set aside $24.36m for bonuses, and each employee will get about $21,583, or some 12 to 13 months of salariy. A dividend of $0.16 per share has been declared.

In addition, Wan Hai will issue $327m of bonds to local Taiwanese investors, a move that has raised eyebrows.

Wan Hai’s management explained that the last container shipping boom was a once-in-a-century occurrence and a down-cycle could last as long as 10 years.

The carrier said: “Wan Hai has many newbuilding orders and wants to build up cash holdings. The interest rate on bonds may be lower than the banks’, and bonds cannot be redeemed within the issuance period of five to 10 years, unlike banks, that may recall loans.”

The bond issuance coincides with unconfirmed reports that Wan Hai has ordered another 3,033 teu ship at Japan Marine United Corp/Nihon Shipyard, where it already has 41 similar vessels under construction. And, including four 2,800 teu ships acquired from CSBC and 14 13,000 teu vessels under construction, Wan Hai has 55 vessels on order.

Meanwhile, Evergreen said it would continue to expand fleet capacity and adjust routes to mitigate changing market conditions.