The Red Sea crisis has significantly boosted the financial performance of Wan Hai Lines, Taiwan’s 11th-largest container carrier. In 2024, the company reported record revenue of $4.9 billion, a substantial increase from $3.03 billion in the previous year. Notably, Wan Hai Lines also achieved a record net profit of $1.44 billion, surpassing the loss of $175.5 million in 2023.
The success of Wan Hai Lines can be attributed to the diversion of vessels on longer voyages away from the Red Sea. This strategic move has allowed carriers to capture the excess capacity in the market, leading to a surge in shipping rates. The company’s operating profit for the year increased to $1.53 billion, compared to $47.5 million in 2023. Moreover, pretax profit rose to $1.88 billion, a significant improvement from $58.4 billion in the previous year.
Wan Hai Lines operates a fleet of 110 vessels, with a total capacity of 507,000 twenty-foot equivalent units (TEUs). The company has also placed 31 container vessels on order, which will further enhance its capacity to 331,000 TEUs.
In terms of financial metrics, Wan Hai Lines reported earnings per share of 51 cents, gross margin of 34.9%, and operating margin of 31.2%. These figures demonstrate the company’s strong financial position and its ability to capitalize on the opportunities presented by the Red Sea crisis.
