Taiwan’s Yang Ming Marine Transport Corp. is planning a phased fleet expansion strategy as competitive pressures intensify in the global shipping industry. The move comes as rival Wan Hai Lines advances with its extensive vessel acquisition program.
Yang Ming’s Chairman Tsai Feng-Ming acknowledged that Wan Hai’s aggressive fleet expansion has created significant competitive pressure on the company. The Taiwanese carrier aims to maintain its market position through strategic fleet renewal and capacity management.
Chief Operating Officer Li Ming-Hui noted that current spot rates exceed last year’s levels, suggesting potentially higher long-term contract prices for European routes in upcoming negotiations, expected to conclude by year-end.
Despite better-than-expected loading rates and anticipated pre-Lunar New Year cargo surge, the industry faces challenging conditions. French consultancy Alphaliner projects supply growth will outpace demand significantly in 2024, with capacity expanding 10.4% against modest 3% demand growth. The imbalance is expected to persist into 2025, though Middle East tensions could partially offset overcapacity by disrupting vessel deployment.
Yang Ming is navigating these headwinds by focusing on fleet modernization and capacity optimization, while monitoring geopolitical developments that could impact shipping routes and vessel availability.
