Wan Hai Looks Toward Supply Chain Regionalization to Boost 2022 Results

Wan Hai Lines Ltd. (2615-TW) is optimistic about the peak demand season in the second half of the year and expects annual revenue to exceed last year, according to a company executive.

Speaking at a shareholders’ meeting on Thursday (May 26), Wan Hai Vice Chairman Randy Chen anticipates that supply chains will develop in a regionalized and localized manner in the future.

Based on International Monetary Fund (IMF) estimates, Wan Hai anticipates that the economic growth rate will reach 3.6% this year, down from 5.9% last year. The global economy will continue to recover, but at a slower pace, the company added.

According to Alphaliner, a maritime consultancy firm, cargo demand will grow by 4.9% this year, while the supply of vessel capacity will increase by 4.3%.

Wan Hai believes that the Ukrainian War, global inflation, supply chain constraints resulting from the pandemic, container shortages and labor and port congestion will encourage companies to rethink their supply chain carefully in the second half of the year.

The company added that the shipping industry will need to respond to the regionalization and localization of supply chains in the future. 

Wan Hai stressed that it will flexibly adjust its routes and vessels in operation to cope with new demand and new capacity from previously purchased second-hand vessels to meet demand in the second half of the year.

In the long run, Wan Hai will continue to review its current route planning and organization and look for opportunities to develop new markets to meet the challenges of a changing economic environment and increased competition in the sea freight market.

Wan Hai will continue to review its current route planning and organization to explore new markets and increase the number of routes to meet customer demand. At the same time, Wan Hai will install fuel-saving equipment on its vessels to tightly control fuel and related transportation costs.

In addition to approving last year’s financial results during the shareholders’ meeting, Wan Hai also approved a cash dividend of NT$10.50 per share, plus a NT$1.50 stock dividend, the highest ever.