News / Yang Ming extends charters and is set to order new box ships

Photo: Wan Hai Lines

Yang Ming’s chairman Tsai Feng-ming says the Taiwanese carrier is feeling the heat from compatriot peer Wan Hai Lines’ aggressive newbuilding spree.

Yang Ming’s only newbuildings are five 15,500 teu ships commissioned in May 2023, while, Wan Hai, widely tipped to join one of the container shipping alliances next year, has 30 vessels on order, amounting to 308,339 teu.

Speaking at the National Association of Chinese Shipowners’ members’ meeting on Monday, Mr Tsai said: “Wan Hai’s massive ship orders have indeed given us pressure. Amid market uncertainties, Yang Ming has to expand its fleet to stay committed to THE Alliance (to be renamed Premier Alliance in 2025).”

Yang Ming’s current fleet stands at 695,799 teu, making it the tenth-largest liner operator. However, 11th-ranked Wan Hai’s fleet comprises 525,047 teu, so, with its newbuildings it could overtake Yang Ming and, possibly, ninth-placed Zim.

Mr Tsai continued: “We plan to order 14,000 teu and 8,000 teu ships, as well as feeder ships for our intra-Asia services. However, we have to manage our capital outlay and, orders for the bigger ships will be prioritised to comply with FuelEU regulations that require cleaner fuels to be consumed. Our newbuilding orders will be phased, and won’t be executed in bulk.”

Last week, Yang Ming extended the 10-year charters on 15 Seaspan-owned 14,000 teu ships by six years.

Meanwhile, Wan Hai GM Tommy Hsieh, who was at the meeting, opined that freight rates were not expected to fall sharply, as the Red Sea crisis would not be over anytime soon.

Mr Hsieh said: “We don’t operate any services to Europe yet. Vessel availability remains tight due to the Red Sea situation, so we think there won’t be any intense downward pressure on freight rates.”