News / Uncertainty drives Yang Ming fleet boost as focus switches to Asia-Europe trades

YM Mobility. Photo: VesselFinder

Taiwan shipping line Yang Ming must look to diversify its service portfolio, said chairman Tsai Fengming at the company’s AGM on Thursday.

The legal battle surrounding President Trump’s implementation of tariffs on global imports was increasing the uncertainty and tension in the shipping market and the carrier’s focus on the transpacific had to change, he said.

Dr Tsai said the recent announcement of plans to build 20,000 teu ships was aimed at increasing Yang Ming’s presence in Asia-Europe trades.

Its largest ships are 15,000 teu workhorses, and the company’s past resistance to operating 20,000 teu vessels was due to its transpacific-centric strategy, he explained.

“The US courts’ initial ruling on the tariffs would have been positive for shipping, but the Trump administration is appealing, so the situation remains uncertain.”

He continued: “Escalating trade conflicts, rising protectionism, and geopolitical tensions have increased the uncertainty in global economic and trade development. Yang Ming’s response is to widen its operating scale to meet the needs of global trade and economic development.

“Over the medium to long term, we will deploy ships of various sizes so that our capacity in the Asia-Europe and Asia-Central and South America will be optimised. We’ll also respond to the trend of shifting supply chains to expand business opportunities and become more competitive.”

Dr Tsai has yet to disclose how many 20,000 teu ships he wants, but has ambitions of taking the fleet to around 1.3m teu by 2032, which, he said, would boost Yang Ming’s market share to 3%, from 2.2% currently with its 711,000 teu capacity.

The company has also announced plans to acquire up to six 8,000 teu ships and up to seven 15,000 teu ships and is building five 15,500 teu vessels at HD Hyundai Heavy Industries for delivery in 2026. Based on this, Yang Ming would need to order seven to 17 20,000 teu ships to achieve its targeted capacity.

The Taiwanese line, which achieved a $1.9bn net profit in 2024, up from 2023’s $153m, announced a dividend of TW$7.50 ($0.25) per share.