Taiwan’s Yang Ming Marine Transport is weighing up an order for its first ultra-large containership (ULC) of between 23,000 teu and 24,000 teu as part of its fleet renewal programme.
Shipbuilding sources said Yang Ming has shown interest in the vessel size and has asked shipyards for newbuilding information.
In a virtual investor conference held on 19 July, general manager Du ShuChin confirmed that Yang Ming is evaluating a plan to build large boxships.
He said Yang Ming has mapped out a fleet renewal programme under which some containerships taken on a long-term basis will be returned to owners when their contracts expire. He did not give details of the vessels to be returned.
He added that the company is also planning to scrap some old ships.
Du said Yang Ming will be working with its partners in THE Alliance — which involves German liner Hapag-Lloyd, Singapore-based Ocean Network Express (ONE) and South Korea’s HMM — on the possibility of ordering the ULC newbuildings.
Yang Ming said it will need approval from the company’s board of directors before any decision can be made.
Yang Ming did not disclose the number of ULCs it is looking to build but some shipbuilding players believe it will need at least five to six ships.
ULC first
Yang Ming is said to be the only member in THE Alliance that is without ULCs.
HMM is operating a dozen 24,000-teu vessels that were delivered last year, while Hapag-Lloyd has 12 dual-fuel ULCs under construction at Daewoo Shipbuilding & Marine Engineering with delivery set for 2023 and 2024.
ONE has chartered six 24,000-teu newbuildings from Japanese tonnage provider Shoei Kisen under a long-term basis. The sextet is currently under construction at Imabari Shipbuilding and is due for 2023 and 2024 delivery.
Shipbuilding players said if Yang Ming is to order the ULC newbuildings, it will need to wait until 2024 to take delivery as most shipyard orderbooks are full until the end 2023.
They estimated the newbuilding price to be more than $200m if the 24,000-teu vessels are to be powered by LNG fuel.
One boxship specialist said liner companies have deep pockets due to huge earnings they made from high freight rates. If they do not reinvest them in new vessels, the profits will be taxed or distribute to shareholders.
A Yang Ming spokesperson said: "The largest size of containership Yang Ming operate right now is 14,000-teu vessels. Yang Ming always looks for opportunities for fleet renewal to cope with our service development plan as well as the latest international/environmental regulation, but it’s still under discussion and evaluation at this stage. If there’s any new ship plan put in place, we will make relevant announcement accordingly."
Yang Ming returned to the black last year with a profit of TWD $11.98bn ($427m), after a net loss of TWD $4.3bn in 2019.
Yang Ming said it has 88 ships. Alphaliner ranks the company as the ninth-largest liner player in the world.
