Taiwanese shipping companies are paying out record premiums at mid-year despite a slump in global cargo traffic as the industry continues to benefit from earlier pandemic gains.
According to a report by Economic Daily News on Thursday, the Yang Ming Marine Transport Corp. its workers up to 30 months’ wages on the next payday after shareholders approved the NT$2.3 billion (US$75 million) bonus last Friday. There is also a year-end bonus worth 12 monthly salaries, which will be paid out at the beginning of this year.
Company rules dictate that the shipping company must pay out 1% of last year’s profit as compensation to its employees, Yang Ming said in an email to Bloomberg, although the amount each employee receives is at the company’s discretion.
According to the same report, Evergreen Marine Corp. will pay its 3,100 workers an additional NT$1.9 billion, equivalent to about 12 months’ wages, after shareholders approved the bonus at a Tuesday meeting. The latest payments come on top of around 50 months’ salary in bonuses in January, after the shipping giant reported record profits of NT$334.2 billion (US$10.9 billion) last year.
Evergreen did not immediately respond to requests for comment.
Shipping companies have benefited from an industry-wide increase in demand for consumer goods and freight rates during the Corona crisis over the past two years. But that is easing as economic uncertainty leads to a slump in global shipping.
According to analyst estimates, Evergreen’s net profit this year is expected to fall 94% to NT$18.6 billion. Yang Ming’s earnings are forecast to fall 99% to NT$2.2 billion.
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