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Yang Ming Delivers Profit in 2017
Moving into the black, Taiwanese shipping company Yang Ming Marine Transport Corporation (Yang Ming) ended 2017 with a net income of TWD 0.32 billion (USD 10.98 million), compared to a net loss of TWD 14.9 billion seen in 2016.
The consolidated revenues totaled TWD 131.08 billion in 2017, up 13.59% when compared to TWD 115.4 billion recorded a year earlier.
Volumes in 2017 also increased to 4,722 thousand TEUs, up 9% year over year.
“Coupled with a recovering shipping market, the effort and dedication from team members worldwide helped Yang Ming’s move in the right direction and take the first step to success,” the shipping company said.
Apart from strengthening its operating strategies such as management centralization, Yang Ming said it has deployed strategies to optimize cargo structure, integrate information technology systems, and train staff.
Last month, Yang Ming received a green light from its board to move forward with the fleet renewal plan announced in 2017. Under the plan, Yang Ming will order the construction of ten 2,800 TEU containerships and charter ten 11,000 TEU boxships. Investment in new tonnage comes on the back of the company’s cash-raising initiatives from last year.
Alphaliner: Major Capacity Boost Expected in April
An abundance of new service launches will help employ container ship new buildings and give a further boost to the charter market in April.
Alphaliner informed that over the next six weeks more than 60 vessels with a total capacity of 360,000 TEU will be needed to populate the new loops.
The most significant additions will be on the Far East – West Coast South America and Far East – Caribbean routes, where next month’s complete revamp of the existing carrier partnerships will see the launch of eleven new strings that will replace the current service pattern on nine weekly loops.
A total of 115 ships with a combined capacity of 965,000 TEU will be deployed on the route from April, compared to a fleet of 95 ships, or 780,000 TEU, used today.
The 20 additional ships to be deployed on the Far East – WCSA and Far East – Caribbean routes will comprise 6,000 – 13,000 TEU units, with an average capacity of 9,000 TEU.
The 24% increase in the overall capacity on the trade will include additional capacity to Mexico as well as the Caribbean, with a new Maersk – Hamburg Süd service dedicated to Mexico, as well as another new service that will connect the Far East to the Caribbean via a wayport call at Buenaventura, Alphaliner said.
However, Maersk’s overall share on this trade will be eroded as all of its main competitors will be adding new capacity on the route. Hapag-Lloyd, MSC and ONE are forming a new VSA partnership together with HMM, while CMA CGM, COSCO and Evergreen have established a separate VSA with Wan Hai, PIL and Yang Ming.
USD 3 Bn Worth ONE Put to Sea
Japanese trio Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen Kabushiki Kaisha have completed the investment payment into their new joint venture shipping business Ocean Network Express (ONE).
The investment worth USD 3 billion was paid all in cash on April 2, according to a joint press release on the matter.
“Assets intended as in-kind contributions will be transferred at market value in the future,” the release said.
The joint venture, established in July 2017 in Singapore, commenced service on April 1, 2018. K Line and MOL each hold 31 pct stake in the JV, while NYK participates with 38 pct share. ONE has about 230 vessels in its fleet totaling 1.44 million TEUs, making it the world’s sixth-largest container shipping line.
The network includes a total of 85 services, calling at over 200 ports in 100 countries.
Last week the US ports of Oakland expressed its readiness to receive first calls from ONE, adding the merger would not cause any interruptions to its operations.
HMM CEO Wins Three More Years
South Korean shipping company Hyundai Merchant Marine (HMM) has extended the term of its Chief Executive Officer (CEO) C.K. Yoo. until 2021.
“All employees of HMM – with a sense of great duty and mission as the only national ocean carrier – will give our all to leap forward as one of the top global shipping carriers.”
“We believe that HMM will gain great cost-competitiveness and strengthen its sales power,” Yoo said.
The term extension is being reported in the light of the company’s 42nd regular shareholders’ meeting held at the HMM’s headquarters in Seoul.
Yoo is expected to resume the company’s fleet renewal campaign which has seen HMM order construction of five very large crude carriers (VLCC) last year at DSME and acquire two 11,000 TEU containerships.
Earlier this week, the company announced it had secured USD 420 million to finance the construction of the quartet. As announced by Yoo in January, the company intends to double its vessel capacity by 2022.
As part of the plan, HMM revealed an investment in the construction of 22,000 TEU newbuilding that is expected to be formalized shortly.
Furthermore, the company has launched a digitalization of its operation via a switch to a Cloud-based next-generation system, planned to be completed by 2020.
Source: World Maritime News
