One year of work equals three years of work! The big boss gives out 27 months of mid-year bonus

   "Mid-year bonus? What a joke! There's no year-end bonus!"

The mid-year bonus is 27 months' salary. Cross-border workers: Is it too late to change careers?

Recently, Yang Ming Marine Transport announced at its shareholders' meeting that each employee can receive a mid-year bonus of nearly NT$1.34 million ( approximately RMB 309,900 ), which is equivalent to approximately 26 to 27 months of monthly salary .

trench!

In 2022, Yang Ming Marine Transport's revenue reached NT$375.9 billion ( approximately RMB 86.939 billion ) and its net profit after tax was NT$180.6 billion ( approximately RMB 41.770 billion ) . With both revenue and net profit achieved, its employees received 12 months of year-end bonuses and one month's assessment bonus .

Overall, from last year to this year, Yang Ming Marine Transport employees received nearly 40 months of monthly salary as bonuses.

I thought it was the ceiling in the industry, but there are even richer ones than Yang Ming Marine Transport!

Last year, Evergreen Shipping gave out more than 45 months' salary as year-end bonus, and some employees even received 52 months' salary, which made many cross-border workers envious . Some operators even joked about changing careers .

In the middle of this year, Evergreen Marine again paid out NT$1.918 billion ( RMB 444 million ). If we estimate that the company has nearly 3,000 employees with a monthly salary of NT$ 60,000 , each person can receive an average of 10 to 11 months of mid-year bonuses, which is conservatively estimated to be about NT$600,000 (RMB 138,800 ) per person .

At present, the bonus has gone into the pockets of Evergreen Marine employees.

In the past few years, many industries have fallen into the abyss due to the impact of the epidemic, but the shipping market has grown against the trend. Riding on the east wind of soaring global freight rates , Evergreen Shipping has paid out more than 40 months ' salary as year-end bonuses for two consecutive years .

An Evergreen Marine employee shared on a social platform that he has earned nearly NT$10 million (approximately RMB 2.3137 million) in three years from mid-2020 to the present, and his basic monthly salary plus bonuses totaled 171 months of salary .

Working for 3 years is equivalent to working for 14 years. Who is crying with envy?

In 2022, Evergreen Marine's revenue reached NT$627.28 billion (approximately RMB 145.079 billion) , a year-on-year increase of 28.2%; net profit was NT$334.2 billion (approximately RMB 7.7294 million) , a year-on-year increase of 39.8%.

The shipping market’s mid-year prize is coveted, but overall market performance is not as good as before.

Shipping prices fell by 80%, but cross-border logistics companies still saw a 50% drop in cargo volume

Data from the Japan Maritime Centre ( JMC ) showed that in April, outbound container trade from 18 Asian economies to the United States fell 17.9% year-on-year to 1.5439 million TEUs , while in the first four months of this year, Asia's exports to the United States fell 25.2% to 5.5403 million TEUs compared with the same period in 2022 .

Judging from the overall data, Asia -US exports have shown a year-on-year decline for eight consecutive months .

In April , exports of toys and sporting goods fell by 32% , exports of furniture, bedding, etc. fell by 30% , and exports of textiles and textile products fell by 28.7%.

A cross-border logistics practitioner told Ennet that his company’s cargo volume has dropped by about 50% since the beginning of this year .

The continued decline in export volume is accompanied by a sluggish shipping market.

Combined with the financial report data for the first quarter of this year, the net profits of almost all major container shipping companies have plummeted.

In terms of the decline in net profit , Evergreen Marine ( 95% ), Yang Ming Marine Transport ( 94% ), ONE ( 76% ), COSCO Shipping ( 74% ), Maersk ( 68% ), Hapag-Lloyd ( 61% ), CMA CGM ( 52%) , while ZIM and Wan Hai even suffered losses .

In terms of average freight rates , Maersk fell by 37% and Yang Ming Marine Transport fell by about 70% .

Although Evergreen and Yang Ming both said that the overall freight rates and export volume market had slightly recovered in April, the overcapacity situation had not been significantly alleviated. Niels Rasmussen, chief shipping analyst at BIMCO , said that freight rates had fallen by 70-80% and the balance between supply and demand had deteriorated .

Hapag-Lloyd CEO Rolf Habben Jansen also said that spot freight rates are currently below the break-even point in the trans-Pacific and Asia-Europe trades, and average freight rates, including contract and spot rates, are expected to fall further starting from the second quarter .

The latest weekly report of the Shanghai Shipping Exchange shows that on May 26 , China's export container freight rate comprehensive index was 938.74 points, down 0.8 % from the previous period .

It is reported that the contract freight rate for the US West Line, which took effect in May, is about US$1,500-1,600/FEU, and that for the US East Line is about US$2,500-2,600/FEU, a drop of 80% compared to last year's average contract price of about US$8,000.

Although Evergreen Marine is cautiously optimistic about the future market recovery , many industry insiders told Een.com that this expectation is likely to be dashed.

" Although freight rates have risen slightly recently due to factors such as UPS's strict inspections and flow restrictions, and Amazon's increased difficulty in booking card dispatches, the outlook for the next period of time is not too optimistic. The holiday shopping peaks in the second half of the year may only bring about slight fluctuations. "

Consumption downgrade is widespread, and the package volume of giants such as Amazon has dropped sharply

The U.S. consumer data for May released by McKinsey's consumer research team showed that consumption downgrade in the United States has spread to high-income and young groups , among which 89% of Generation Z and baby boomers have experienced consumption downgrade.

In March this year , real consumer spending in the United States fell 0.7% year-on-year. Since the outbreak of the epidemic , real spending by high-income consumers and millennial consumers has fallen for the first time.

At the same time , consumers' willingness to spend big is also weakening . In May, the proportion of Generation Z who planned to spend big dropped to 58% , while only 29% of baby boomers planned to spend big .

In terms of categories, more than a third of respondents said they would spend big on food, travel and clothing, while only 25% planned to buy durable goods such as jewelry and household items.

The consumer market is pessimistic, and at the same time, cross-border sellers are also facing inventory clearance sales by local retail giants.

In the first quarter of this year, the inventory level of US department store giant Kohl's fell 6% year-on-year to $3.5 billion. Its CEO Tom Kingsbury also said that Kohl's has begun a regular inventory clearance plan .

At the end of the first quarter, the inventory of US retail giant Target fell by 16% year-on-year, of which non-essential items fell by 25% year-on-year. Target said it will continue to adopt a streamlined inventory strategy in the future and keep its inventory "conservative and cautious ."

Including Walmart, many retail giants that are stuck in the dilemma of inventory accumulation are actively carrying out price reduction promotions in the hope of restoring inventory levels to "healthy" levels.

In response to this year's market performance, most retail giants have lowered their sales and profit expectations.

Since last year, the parcel volume of many global logistics giants has been declining exponentially. According to the Pitney Bowes index , last year, FedEx fell 7.2% , UPS fell 7.2%, Amazon fell 5.2% , and USPS fell 3.2% .

The downward trend continued into this year.

In the first quarter of fiscal year 2023, USPS's shipping and package volume fell 3.5%, or 70 million pieces, year-on-year.

In the first quarter of 2023, UPS 's parcel volume fell 5.4% year-on-year ; Canada Post's parcel volume fell 7.6%, or 5 million pieces ; and the Dutch postal company PostNL's parcel volume fell 6.5% . The parcel volume of the vast majority of postal companies around the world, including FedEx and DHL , is declining.

The continued decline in package volume has forced a number of logistics companies to raise their rates. Currently, FedEx , UPS , and USPS have all increased their rates to reduce profit pressure , while cross-border sellers are facing package delivery costs that have hit record highs .

Worried about sales and costs, the seller smiled bitterly: I lose more hair than a programmer.

Mid-year Award