Yang Ming unveils huge fleet renewal plan

The Taiwanese ocean carrier will charter 10, 11,000-TEU ships and purchase 10, 2,800-TEU ships to replace outgoing vessels in its current fleet over the course of the next few years.

   Yang Ming has plans to charter 10, 11,000-TEU ships and to purchase 10, 2,800-TEU ships, according to Wenjin Lee, president and chief executive officer, and Leo Chiang, vice president, at Yang Ming (America) Corp., the company’s U.S. agent and ship manager based in Newark, N.J.
   There is increasing discussion about the possibility that containership capacity is outstripping demand. A recent report from credit ratings provider S&P Global Ratings said, “Demand in the three main segments of the global shipping industry (dry bulk, tankers, and containers) will outstrip supply for the first time in several years.”
   The report projected flat to slightly negative growth in freight rates for container liners, due to uncertainties about their maintenance of supply discipline.
   However, Yang Ming said its plan is to use these vessels to replace outgoing vessels in its current fleet, implementing the plan over the course of the next few years.
   Yang Ming said it is focused on improving the efficiency of its fleet “through the replacement of existing older ships, with moderate capacity increase over several years in order to catch up with the organic market growth.”
   The company said it will either purchase or charter the vessels through an open bidding process, but noted it was too early to know which companies will be the shipowners or shipyards, or what the timeline is for bringing the vessels into operation.
   Back in December, the Taipei Times reported that an investment by Taiwan International Port Corp. would allow Yang Ming to expand operations in Southeast Asia.
   The 2,800-TEU vessels will be deployed at the discretion of Yang Ming, most likely on the intra-Asia and/or intra-Europe trade lanes.
   Yang Ming noted how the 11,000-TEU ships “can fit the demand of several trades with much better efficiency when compared with the older 8,000-TEU ships.”
   According to ocean carrier schedule and capacity database BlueWater Reporting’s Carrier Ranking report, Yang Ming currently has an operating fleet capacity of 590,090 TEUs.