News / Yang Ming unveils fleet renewal plan, but is cautious long-term

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Yang Ming’s management today disclosed its fleet renewal plans and discussed contract negotiations.

The Taiwanese carrier released its 2023 results on 8 March, showing net profit plunged to $153m, from $6.06bn in 2022, as the Covid-powered boom ended.

Newbuilding plans were not detailed, although Yang Ming is understood to be considering orders for eight 8,000 teu boxships and six of 1,900 teu, with methanol propulsion favoured.

Geopolitical tensions mean Yang Ming is unlikely to select a Chinese shipbuilder. Coincidentally, compatriot shipbuilder CSBC Corp  recently received in-principle approval from Lloyd’s Register for its 2,500 teu methanol-fuelled design, and is engaging with Yang Ming and Evergreen to secure much-needed orders.

Yang Ming’s directors said six of the liner’s ships would be fitted with scrubbers this year to continue balancing its fleet propulsion between low-sulphur fuel oil and high-sulphur fuel oil.

The current fleet stands at 94 ships, for 707,000 teu,  and the carrier has five 15,500 teu ships on order from HD Hyundai Heavy Industries for delivery in 2026.

While the Red Sea crisis has alleviated the impact of the record newbuilding deliveries this year, Yang Ming’s management is maintaining a conservative approach.

A company representative said: “In terms of long-term shipping contracts for the transpacific and Asia-Europe, negotiations with shippers are still in progress, and we can’t disclose details of individual contracts. Current freight levels are in favour of the shipping lines, but we have to consider long-term trends, and these remain under negotiation.”

The representative added: “Looking forward to Q2 24, we believe demand for Asian exports will pick up, but overall cargo demand growth is uncertain, and the Red Sea situation is distorting vessel supply. Its impact on each shipping company is different, and it is impossible to grasp the extent of the effects.”

The representative added that with the Panama Canal Authority allowing more transits, Yang Ming had resumed canal transits for two services.