Yang Ming Marine Transport Corporation (Yang Ming), the world’s 10th largest and Taiwan Province of China’s second-largest liner operator, is accelerating its new shipbuilding projects, according to China Times News Network. Yang Ming plans to expand its container capacity from the current 711,400 TEU to 1.1 million to 1.3 million TEU by 2032, indicating that the company will make major moves in fleet expansion in the coming years.
The report said that considering the restrictive measures taken by the United States on Chinese shipbuilding, namely the port fee policy, Yang Ming’s new shipbuilding project will select shipyards from South Korea, Japan and Taiwan, and mainland shipyards will not be considered.
Data from shipping consultancy Alphaliner shows that Yang Ming currently has a fleet of 98 vessels with a total capacity of 711,400 TEU, making it the world’s 10th-ranked liner company with a market share of 2.2%; it has eight vessels under construction with a total capacity of 101,500 TEU.
The eight ships under construction are five 15,500TEU LNG dual-fuel container ships built by HD Hyundai Heavy Industries and three 8,000TEU methanol dual-fuel container ships purchased from Japanese shipowner Shoei Kisen and built by Imabari Shipbuilding.
The acquisition of the three vessels under construction from Shoei Kisen is the first phase of Yang Ming’s fleet renewal program. by the end of 2024, Yang Ming has decided to introduce thirteen newbuild container ships in the 8,000 TEU to 15,000 TEU class to replace its fleet of 5,500 TEU to 6,500 TEU class container ships, which are more than 20 years old.
Shortly after announcing the purchase of the vessels, Yang Ming Marine Transport announced the launch of the bidding process for three 8,000TEU container ships and seven 15,000TEU LNG dual-fuel container ships, which closed on April 15. Shipyards in South Korea, Japan and Taiwan participated in the bidding.
According to the bidding documents, the length of an 8,000TEU container ship shall not exceed 275 meters, the beam shall not exceed 45 meters, the speed shall be 20.5-22 knots, and the endurance shall be approximately 24,700 nautical miles; the length of a 15,000TEU LNG dual-fuel powered container ship shall not exceed 370 meters, the beam shall not exceed 51.25 meters, the speed shall be 22 knots, and the endurance shall be approximately 25,600 nautical miles (LNG fuel mode) to 13,800 nautical miles (fuel mode).
Cai Fengming, Chairman of Yang Ming, said that the fleet expansion plan was launched at a time when the “tariff drama” of US President Trump is expected to end. With the positive feedback from the China-US tariff negotiations, the shipping industry has a chance to breathe. Recently, the global futures market has rebounded sharply. Currently, shipping companies are fully booked and freight rates are rising. Especially in the United States, which is facing low inventory of consumer goods, empty shelves, and the huge pressure of replenishing stocks as soon as possible, Yang Ming is expected to achieve a rebound in performance in the second quarter of this year and usher in the peak freight season in the second half of this year.
Cai Fengming further pointed out that during the most difficult period of the China-US tariff negotiations, Yang Ming was able to maintain a high load factor, with an average load factor of over 95% throughout the year. With the recent easing of China-US relations, Yang Ming’s booking situation is good, and the current load factor remains at a high level. Subsequently, the company will look to stabilize in the tariff war, depending on changes in inventory and demand.