Wan Hai Lines Ltd (萬海航運) plans to expand its capital expenditure for next year to NT$1.53 billion (US$49.2 million) from NT$1.3 billion this year, as it receives new vessels to boost its fleet, the shipping company told an online investors’ conference yesterday.
The spending for next year would surpass last year’s record NT$1.5 billion.
The shipping company plans to take delivery of 12 ships with a combined capacity of 52,430 twenty-foot equivalent units (TEUs) this year, 24 vessels with a combined capacity of 173,558 TEUs next year and 14 ships with a combined capacity of 103,040 TEUs in 2024, it said.
Photo: CNA
Overall, Wan Hai would receive 50 new vessels from this year to 2024, including 18 ships whose capacity exceeds 13,000 TEUs, which would be put on Asia-North America or Asia-South America routes, spokeswoman Laura Su (蘇麗梅) said.
Wan Hai’s business in the first half of the year was mainly focused on the intra-Asia market, which accounted for 59 percent of its freight volume, Su said, adding that the Americas accounted for 25 percent, up from 17 percent a year earlier.
Wan Hai’s revenue from North and South American operations made up 59 percent of its total revenue in the first half of the year, compared with 40 percent a year earlier, thanks to rising shipping rates for the American markets.
Shipping rates for the intra-Asia region dropped sequentially last quarter, which drove revenue contribution from this route down to 26 percent from 40 percent a year earlier.
Wan Hai president Tommy Hsieh (謝福隆) said he expects rates to recover next quarter,
“Since the third quarter is a slow season, a correction in shipping rates is normal, but next quarter would be a peak season,” he said.
Like Yang Ming Marine Transport Corp (陽明海運), Wan Hai’s clients have also asked to renegotiate freight rates and the company, in principle, would offer short-term discounts to address such requests to build up long-term partners, Hsieh said.
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