Taiwanese shipping company Yang Ming is generously providing a bonus equivalent to up to 30 months’ salary to its fortunate staff members.
According to a report by Bloomberg, Yang Ming Marine Transport is set to distribute this substantial bonus to its employees on their upcoming payday. Shareholders approved this exceptional bonus, amounting to approximately NT$2.3 billion (equivalent to S$101 million) in costs for the company, as reported by the Economic Daily News.
Based on information from the Taipei Times, the average bonus for each Yang Ming staff member will amount to around NT$1.34 million (equivalent to S$58,800). Notably, this significant bonus is in addition to the 12-month year-end bonus that was awarded to employees earlier this year.
These bonuses are being disbursed in accordance with the company’s charter, which mandates the allocation of at least 1% of its profits as mid-year bonuses to staff members. The exact payout amount per employee is determined at the company’s discretion, while their average monthly salary stands at NT$50,000 (equivalent to S$2,200).
In March, Yang Ming announced a record after-tax profit of NT$180.6 billion (equivalent to S$7.93 billion) for 2022, along with a record high consolidated sales of NT$375.9 billion (equivalent to S$16.5 billion). These exceptional financial results were driven by robust demand and elevated average freight rates in the container shipping market, a trend seen across global shipping firms during the Covid-19 pandemic.
In contrast, Evergreen Marine, Yang Ming’s Taiwanese competitor, plans to distribute a comparatively modest mid-year bonus equivalent to approximately 12 months’ salary to its employees. This bonus will cost Evergreen Marine approximately NT$1.918 billion (equivalent to S$84.1 million). The company reported a record after-tax profit of NT$334.2 billion (equivalent to S$14.7 billion) for 2022.
Despite the current prosperity, shipping companies anticipate a downturn in the industry’s fortunes. Yang Ming highlighted that purchasing power has been reduced due to inflation and high inventory levels since the fourth quarter of 2022. Analysts predict a staggering 99% decline in Yang Ming’s profit to NT$2.2 billion (equivalent to S$96.5 million) and a 94% drop in Evergreen’s net income to NT$18.6 billion (equivalent to S$816 million).
Evergreen’s President, Eric Hsieh, stated to the Taipei Times that the global shipping industry may experience a decline in the first quarter (1Q) but expects a rebound in the second quarter (2Q).