News / With no market stability, we must create our own, says TS Lines chief

Shipping companies can no longer pursue a supply-demand equilibrium, and must be more self-sufficient as the external environment becomes more uncertain, said TS Lines’ new vice-chairman, Chen Shao-hsiang, son of founding chairman Chen Te-sheng.

At the Hong Kong carrier’s annual banquet on Saturday, he said this is why the company had been expanding its fleet and ordering more containers.

Since last August, TS Lines has ordered four mid-sized ships and upgraded orders for two 4,300 teu ships to 5,300 teu ones.

Mr Chen Shao-hsiang said: “My father used to tell me that shipping is a stable business; although profits are thin, it’s a steady, long-term endeavour.”

He added: “From the financial crisis and Hanjin Shipping’s bankruptcy to the recent Covid-induced boom, the return of freight rates to normalcy, and the Red Sea conflict, I’ve seen everything through several cycles – except for stability.

“This made me realise that the world has changed. The environment we live in is no longer the simple market of pursuing supply and demand balance, and the era when we were chased by customers is over. Today’s world is full of technological upheavals and escalating geopolitical tensions.”

He said US protectionism and the Red Sea crisis had altered tradelanes, diverting more traffic to regional routes. In response, TS Lines diversified beyond its intra-Asia focus to South America and the Middle East.

“In such an unpredictable era, what is TS Lines’ strategy? Since the external environment is no longer stable, we must create stability from within.”

TS Lines currently operates 42 vessels with a capacity of approximately 110,000 teu, of which 40 are owned. In the next three years, 13 new vessels will be added, increasing capacity by approximately 100,000 teu.

Since 2024, TS Lines has ordered nearly 50,000 new containers, including a significant proportion of special s. This investment will push the company’s owned container ratio close to 50%.

Mr Chen Shao-hsiang said: “This not only significantly reduces operating costs but also reflects the company’s commitment to customers.”