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The Russo-Ukraine war has led to a continuous deterioration of the global supply chain, inflation, and food security issues. It has also caused disruptions in maritime shipping schedules, port congestion, and surging oil prices. This paper examines the impact of the Russo-Ukraine war on the operational strategies of Taiwanese container shipping companies. Evaluate the operating strategy by analysis Taiwanese container shipping companies. Furthermore, the effects on the container shipping industry are evaluated through changes in shipping operations and stock prices.
In terms of vessels, Evergreen Marine Corporation holds advantages in vessel count, capacity, order placement, and Wan Hai Lines excels in cost control. Regarding routes, both Evergreen and Yang Ming have a diverse global network, while Wan Hai specializes in the Asian region. In terms of financial performance, Yang Ming has shown the most improvement, while Wan Hai has demonstrated steady performance.
After the outbreak of the war, both Evergreen and Yang Ming significantly reduced their routes to Russia and Ukraine, with substantial adjustments in European routes occurring three months into the war.
Looking at average abnormal returns (AR), the war has had both positive and negative impacts on Taiwanese stock prices, indicating market uncertainty. Form the point of cumulative abnormal return (CAR) show that during the initial phase of the war, optimism resulted in positive returns, while the later stages saw accumulated returns ranging from -10% to 0% due to the uncertainties surrounding oil sanctions. The lifting of the Black Sea blockade and the missile attacks on Ukrainian ports resulted in significantly negative accumulated returns.
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