Container carrier Yang Ming Marine Transport Corp (陽明海運) will increase year-end bonuses for its employees to an average of 12 months’ salary and raise salaries by around 4%, after a bumper year that saw a significant increase in shipping and profit rates, the firm said.

Yang Ming’s board of directors approved the bonus and salary increase plans on Friday, two weeks after arch-rival Evergreen Marine Corp (長榮海運) reportedly paid bonuses of up to 40 months’ salary to its employees.

Last year, shipper profits were boosted by rising freight rates amid strong global demand and port congestion due in part to COVID-19 restrictions.

Evergreen posted a net profit of NT$158.28 billion ($5.73 billion) in the first nine months of last year, up 1,347.32% from a year earlier, or earnings per share of NT$30.27.

Yang Ming reported net profit of NT$109.8 billion in the same period, up 5,839 percent from a year earlier, or earnings per share of NT$32.73.

For the whole of last year, Evergreen recorded revenue of NT$489.40 billion, up 136.1% from the previous year, while Yang Ming recorded a revenue of NT$334.48 billion, up 120.22%.

In addition to performance-based year-end bonuses, Yang Ming annually issues fixed year-end bonuses of one month’s salary of the respective employee.

This year, its employees would receive 13 months’ salary as end-of-year bonuses ahead of the Lunar New Year holiday, which is due to start on Saturday next week.

Local media reported that Yang Ming may issue additional bonuses for the Dragon Boat and Mid-Autumn festivals, with bonuses this year totaling up to 30 months’ salary.

To meet the strong global demand for container freight forwarding services, Yang Ming is building five new mega ships, each with a carrying capacity of 15,000 20-foot-equivalent cargo units.

The company said it spent NT$10 billion on capital expenditures last year.

As it adds new ships, Yang Ming’s spending for this year could double, the shipper said.