YOU & ME 陽明月刊 132 2017.12 Publisher : Bronson C.C. Hsieh Editor-in-Chief : Alice Ho Managing Editor : Rita Chang Executive Editor : Laney Shih English Consultants : Shih-chi Chen Group Insight Yang Ming Wins Australia-North East Asia Liner Trade Award Yang Ming Marine Transport Corporation (Yang Ming) is widely recognized as an excellent service provider and their Australia-North East Asia Liner Service has won a Highly Commended Award in the 22nd annual Australian Maritime and Transport Awards held by DCN (Daily Cargo News - a weekly Australian shipping, trade, transport and logistics focused publication). Yang Ming s excellent service was highly recognized and the award came in succession to the Customer Service Award granted by Lloyd s List Australia in 2016. Lloyd s List Australia, a branch of the professional maritime media-lloyd s list, was rebranded as DCN-Daily Cargo News in October 2017. The 22nd annual Australian Maritime and Transport Awards ceremony was held at Grand Ballroom of the Sofitel Sydney on November 16, 2017. More than 400 industry leaders joined the grand event and Capt. Firoze Ali (the right) from Yang Ming Australia office represented Yang Ming to receive the award at the ceremony. Yang Ming is honored to receive the recognition and would like to share all the pleasure with the valued customers. At the same time, Yang Ming also vows its dedication as a member of the invaluable team and will exceed customers expectations as always does. Sweden Day 2017 Sweden Day, held in December 8~9, is organized by THE SWEDISH TRADE & INVEST COUNCIL and Swedish Chamber of Commerce. The purpose of Sweden day is to promote Sweden brands and environmental concepts. YES Logistics Kaohsiung logistic center has been nominated as Asian distribution hub for IKEA s food department and core partner of their supply chain business. So that YES logistics has been invited to join Sweden Day event 2017 to present how YES Logistics improves stock management quality and cuts down cost for customers with YES s tailormade logistics service and multiple function warehouses. The theme of this year is Sustainability, echoing UN s Sustainable Development Goals (SDGs). Per 2016 SDGs Index & Dashboards Report, Sweden won the Top 1 position in the country list. On the afternoon of December 8, the organizer held a seminar and workshop on the theme of sustainability and invited speakers to make four speeches for attendees. Following the seminar was the VIP evening, which was kicked off with opening speeches and Sweden Lucia: Taiwan s Legislative Speaker Su Jia-Chyuang (the right)attended the party and delivered a speech. The Lucia lady with a crown or wreath of candles on her head was followed by teenagers dressed in white baptismal robes who sang songs, and moved in from the door to the main stage, suggesting they had driven away the darkness and brought light and warmth, leading people to bright and new days. Following Lucia activity was cocktail party and exhibition for B2B. Most exhibitors were Sweden companies except YES Logistics, the only Taiwanese enterprise on the scene. YES Logistics
aggressively promoted their services to guests and secured business chances. The exhibition of next day was open to the general public. Exhibitors provided activities for new technology ex: 5G and VR skiing and offered the attractive discount to guests to impress visitors with the Sweden brands. Meanwhile, exhibitors have designed activities for kids. YES Logistics has cooperated with Oceanic Culture and Art Museum and displayed excellent paintings from YM s global children and teenagers drawing competitions. Besides, YES Logistics has provided interesting games to kids and the kids have been rewarded a set of sea life three-dimensional origami. The purpose of the painting display and games for kids was to let kids know the sea and sea life in vibrant and interesting ways as a part of oceanic environmental education. Yang Ming Announces the Completion of Rights Offering Yang Ming Marine Transport Corp. (YM) announces that it has completed the rights offering by issuing 500 million new shares at premium of NTD$12 per share, and accumulated total amount of NTD 6 billion. The company began to float new shares in the public sector in September 2017. Besides the original shareholders, it was open to ordinary investors, including insurance institutions, and container stevedoring and transport companies etc. Their strong response indicates private enterprises are optimistic over the future market. After this rights offering, the shareholding ratio of Government shareholders of Yang Ming, including *MOTC, *NDFEY and *TIPC, will reach 38.23%. In addition, the private placement of capital increase which has been passed in 2016 shareholders meeting is also on going steadily and is expected to be completed by the end of this year. The improvement of business management and warming-up of market have boosted investors confidence, Yang Ming says. With the support from shareholders and the improved financial structure after the rights offering, the company vows to continue the strategy of opening new sources of revenue and reducing expenditures. It will work out various plans to make the performance of its fleet more effective and expand its service network throughout the world. At the same time, it will, in keeping with the government s New Southbound policy to find more partners to jointly develop investment projects in the realm of logistics striving toward the goal of making Yang Ming a still better marine transport company of the world. *MOTC: Ministry of Transportation and Communications *NDFEY: National Development Fund, Executive Yuan *TIPC: Taiwan International Ports Corporation Yang Ming Announces the Completion of the Capital Injection for its 2 nd Private Placement Yang Ming announces the completion of the capital injection for its 2nd private placement by placing common stocks 257,753,442 new shares at premium of NTD$10.18 per share from the subscriber *NDFEY on December 8. The aggregated amount is NTD2.62 billion. With the completion of rights offering and the private placement, the holding ratio of Government-related investors will reach 45.07%. *NDFEY: National Development Fund, Executive Yuan THE Alliance Goes Strengthened into 2018 33 services covering all East West trade lanes with 250 modern and most efficient ships / Short transit times / Fast shuttle services / Dedicated Middle East loops / New Indian Sub-Continent PSW pendulum service / Comprehensive port coverage with over 81 ports in Asia, North Europe, the Mediterranean, North and Central America, the Middle East as well as India. After a successful first year of cooperation, the members of THE Alliance announced the details for their enhanced product effective from April 2018. THE Alliance plans to deploy a fleet of more than 250 modern ships in the Asia /Europe, North Atlantic and Trans-Pacific trade lanes including the Middle East and the Arabian Gulf/Red Sea. After one year of cooperation we are proud to say that our services and the network improved significantly, said the member carriers Hapag-Lloyd, Ocean Network Express and Yang Ming in a statement. The business is well on track in operational terms and with the delivery of several new big ships we are able to serve our customers even better. The comprehensive network of 33 services would connect more than 81 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the
Caribbean, Indian Sub-Continent and the Middle East with fast transit times and a wide range of direct port-port-connections. The new product of THE Alliance will feature eight services in the Asia/Europe trade including three services covering the Mediterranean market. 16 joint services will be operated by THE Alliance members on the Trans Pacific trade. Seven loops will serve the North Atlantic trade covering a wide range of North European and Mediterranean ports as well as those in the US, Canada and Mexico and two in Middle East. The base-plan port rotations of the total 33 services will be as follows: Asia and North Europe FE1: Kobe Nagoya Shimizu Tokyo South East Asia Hub Jeddah Rotterdam Hamburg Southampton Le Havre South East Asia Hub Kobe FE2: Xingang Qingdao Shanghai Ningbo Hong Kong South China - South East Asia Hub Southampton Le Havre Hamburg Rotterdam Jebel Ali Hong Kong Xingang FE3: Hong Kong Xiamen Kaohsiung South China Rotterdam Hamburg Antwerp Le Havre - London Gateway South East Asia Hub Hong Kong FE4: Pusan Ningbo Shanghai Rotterdam Hamburg Antwerp Southampton South China Shanghai - Pusan FE5: Laem Chabang Cai Mep South East Asia Hub Colombo Rotterdam Hamburg Antwerp Southampton - Jeddah Colombo South East Asia Hub Laem Chabang Asia and the Mediterranean MD1: Qingdao Pusan Shanghai Ningbo South China South East Asia Hub Damietta Barcelona Valencia Tangier Damietta South East Asia Hub Hong Kong Qingdao MD2: Pusan Qingdao Ningbo Shanghai Kaohsiung South China South East Asia Hub Piraeus Genoa La Spezia Fos Piraeus South East Asia Hub Hong Kong Pusan MD3: Pusan Shanghai Ningbo South China South East Asia Hub Jeddah Ashdod Istanbul (Ambarli) Izmit Izmir/Aliaga Mersin (Ashdod) Jeddah South East Asia Hub Kaohsiung Pusan Asia and the Middle East AGX: Pusan Qingdao Shanghai Ningbo South China South East Asia Hub Jebel Ali Jubail Dammam Abu Dhabi Jebel Ali South East Asia Hub Ningbo Pusan AGX2/CGX: Shanghai Ningbo Kaohsiung Xiamen South China South East Asia Hub Jebel Ali Hamad Umm Qasar Jebel Ali South East Asia Hub Kaohsiung Shanghai Trans Pacific West Coast PN1: Shanghai Qingdao Nagoya Tokyo Tacoma Vancouver Tokyo Nagoya Kobe Shanghai PN2: South East Asia Hub Laem Chabang Cai Mep Kaohsiung South China Tacoma Vancouver Tokyo Kobe Kaohsiung South East Asia Hub PN3: Hong Kong South China Ningbo Shanghai Pusan Vancouver Seattle Pusan Hong Kong PS1: Kobe Nagoya Tokyo Sendai Los Angeles Oakland Tokyo Nagoya Kobe PS2: Kobe Nagoya Shimizu Tokyo Long Beach Oakland Tokyo Kobe PS3: South East Asia Hub Laem Chabang Cai Mep Los Angeles Oakland Pusan Shanghai Ningbo South China South East Asia Hub Nhava Sheva Pipavav Colombo South East Asia Hub PS4: Hong Kong South China Kaohsiung Keelung Los Angeles Oakland Keelung Kaohsiung Xiamen Hong Kong PS5: Shanghai Ningbo Los Angeles Oakland Shanghai PS6: Qingdao Ningbo Shanghai Pusan Long Beach Oakland Tokyo Qingdao PS7: Hong Kong South China Los Angeles Oakland Hong Kong PS8: Xingang Qingdao Shanghai Pusan Pacific North West Los Angeles Tacoma Pusan Kwangyang Xingang Trans Pacific East Coast (via Panama and Suez) EC1: Ningbo Shanghai Pusan Tokyo (Panama Canal) Manzanillo Savannah Jacksonville Charleston Norfolk Manzanillo (Panama Canal) Balboa Los Angeles Oakland Tokyo Kobe Ningbo EC2: Qingdao Ningbo Shanghai Pusan (Panama Canal) Manzanillo New York Boston Wilmington Savannah Charleston Manzanillo (Panama Canal) Pusan Qingdao EC3: Kaohsiung Xiamen Hong Kong South China Shanghai (Panama Canal) Manzanillo Savannah Jacksonville Norfolk Manzanillo (Panama Canal) Balboa Pusan Kaohsiung EC4: Kaohsiung Hong Kong South China Cai Mep South East Asia Hub (Suez Canal) New York Norfolk Savannah Charleston New York (Suez Canal) South East Asia Hub Kaohsiung EC5: Laem Chabang Cai Mep South East Asia Hub Colombo (Suez Canal) Halifax New York Savannah Jacksonville Norfolk Halifax (Suez Canal) Jebel Ali South East Asia Hub Laem Chabang
Trans Atlantic AL1: Rotterdam Bremerhaven Antwerp London Gateway Norfolk Philadelphia New York Halifax Rotterdam AL2: London Gateway Le Havre Rotterdam Bremerhaven New York Charleston Savannah London Gateway AL3: Antwerp Bremerhaven London Gateway Charleston Port Everglades Houston Savannah Norfolk Antwerp AL4: London Gateway Antwerp Bremerhaven Le Havre Veracruz Altamira Houston New Orleans London Gateway AL5: Southampton Rotterdam Hamburg Antwerp Le Havre Savannah Cartagena Puerto Quetzal Long Beach Oakland Tacoma Vancouver Oakland Long Beach Balboa Cartagena Caucedo Savannah Southampton AL6: Salerno Livorno La Spezia Genoa Fos New York Baltimore Norfolk Savanah Salerno AL7: Barcelona Valencia Algeciras Halifax New York Norfolk Savannah Valencia Tarragona The service network of THE Alliance is expected to cover more than 19 ports in Asia including seven Chinese and five Japanese ports with direct calls as well as 21 ports in the US and Canada, seven North European and 17 Mediterranean ports, seven ports in the Middle East and Red Sea, three Indian Sub-Continent ports, and seven ports in Central America/Caribbean. Through this robust network, THE Alliance will offer a superior, reliable, efficient, and wide ranging product suite to shippers in the East/ West lanes. The partners of THE Alliance will keep the market informed about further steps and the final, more precise service rotations and terminal selection. In addition to the extensive product enhancement, we would also highlight that as of April 1st 2018 the three Japanese members of THE Alliance; MOL, NYK, and K-Line will combine their container operations into Ocean Network Express (ONE). ONE will continue to be a core member of the streamlined THE Alliance partnership along with Hapag Lloyd and Yang Ming. * Service changes in relation to US trade lanes are still subject to regulatory approval review. Yang Ming to Launch China-Vietnam Express Service Yang Ming Marine Transport Corporation (Yang Ming) will launch CVX service (China-Vietnam Express) on January 9, 2018. The service will be jointly operated by Yang Ming, T.S. Lines LTD. (TSL) and MCC Transport (MCC) with a total of four container vessels of nominal 1000-TEU capacity. Of the four vessels, one will be deployed by Yang Ming and the remaining three by TSL and MCC. The ports of call will be Shanghai, Ningbo, Hong Kong, Haiphong, Hong Kong, Qingdao, Shanghai, Hong Kong, Haiphong, Shanghai. A round trip will take 28 days. In addition to CVX service, Yang Ming provides TSE and SE8 service covering Taiwan, Hong Kong, Singapore, and Malaysia as well as Haiphong. With the said new route, Yang Ming will not only strengthen Haiphong service network but also provide customers with more convenient and excellent delivery services. Further information about the service network is available at Yang Ming website (www.yangming.com). Please contact Yang Ming local offices for more details. Industry Updates I. Industry Update: A. Overall Demand/Supply Forecast In full year 2017, global box trade is projected to grow by 5.2%, up from 3.9% in full year 2016. Full year projections for mainlane and intra-asian trade growth remain firm, at 5.0% and 6.6% respectively, while North-South trade growth has surpassed initial expectations and is projected to reach 4.6%. While the recent closure of some Chinese factories appears to have had some impact on trade volumes, the effect has been less dramatic than initially feared, and only limited impact has been visible so far. Boxship fleet capacity rose 3.0% in the first 10 months of 2017, with rapid expansion in capacity in the largest vessel sizes, and continued reduction in the smaller sizes. Boxship deliveries are projected to reach 1.1m TEU overall this year, a subdued level relative to that seen in recent years. While the rate of scrapping has slowed since early 2017, boxship recycling remains elevated historically and is projected to reach 0.44m TEU in 2017. Boxship Amy Tou, SPSA, YMHQ fleet capacity is expected to grow by 3.5% in 2017, and by 4.0% in 2018. Box freight rate improvements have generally been sustained through 2017 so far, although rates remain volatile and on some mainlane routes have softened compared to earlier in the year. Containership charter market conditions remained broadly steady in October, with some slight variations across the size ranges. The proportion of boxship capacity standing idle increased slightly m-o-m, but remained relatively limited. Although pressure stemming from continued deliveries of very large containerships remains, further rebalancing of fundamentals could support continued gradual improvement in containership market conditions. (Quoted from Clarkson, Container Intelligence Monthly, November 2017)
2014 2015 2016 2017 2018 Demand 5.3%(±0.0) 2.2%( 0.0) 3.9%(+0.1) 5.2%( 0.0) 5.2%(-0.1) Supply 6.6%(+0.1) 8.0%(-0.1) 1.2%( 0.0) 3.5%(+0.1) 4.0%( 0.0) Balance -1.3%(-0.1) -5.8%(+0.1) 2.7%(+0.1) 1.7%(-0.1) 1.2%(-0.1) Note: 1. Blue - upward amendment compared with last projection 2. Red - downward amendment compared with last projection 3. The figures of supply contain containerships, excluding Multi-Purpose, Ro-Ro and other liners. Source: Clarkson, Container Intelligence Monthly, November 2017 B. Trade Analysis and Statistics Cellular fleet hits 21 Mteu after 3.5% annual rise - But active fleet growth stands at 9.0% The cellular containership fleet has reached 21 Mteu on 2 November, taking almost 22 months to grow from 20 Mteu. The pace of growth is the slowest that has been recorded since 2000, with the average rate of growth during the 2000-2015 period coming in at 1 Mteu added every 12-13 months. The slower rate of supply growth was due mainly to the retreat during the period between August 2016 and February 2017 when the total fleet actually shrunk marginally, with more ships scrapped (501,000 teu) during that period compared to additions from new vessel deliveries (413,000 teu). However, the growth rate has resumed since March this year, with a net addition of 700,000 teu joining the fleet over the past eight months. Only 230,000 teu have been scrapped since March, while 930,000 teu have been delivered over the same period. The faster pace is expected to continue with the global fleet expected to breach 22 Mteu within the next 12 months due to the planned deliveries of over 80 ships of 10,000-21,000 teu during the coming year, while scrapping activity is expected to remain subdued. On a year-on-year basis, the total fleet has grown by only 3.5% since November 2016 from 20.3 Mteu to 21.0 Mteu. However, this masks a much highergrowth in the active fleet as effective capacity growth, based on Alphaliner s measure of the active fleet (total fleet less idled vessel capacity), has grown by 9.0%. The higher rate of growth of the effective fleet is due to the reduction in the idle fleet, which stood at 1.55 Mteu in mid-november last year compared to only 0.52 Mteu currently, resulting in the return of 1.03 Mteu to active service. The current effective growth rate in the total supply of active containerships of 9.0% has surpassed the overall rate of growth in container volumes, with global container port throughput expected to increase by 6.4% this year. Carriers reluctance to take out capacity for the winter slack season has hit spot freight rates, with the Shanghai Containerised Freight Index (SCFI) falling by 26% since January this year. Further rate weakness is expected in the coming weeks, with lower demand expected to add further pressure on the spot freight market. Source: Alphaliner Newsletter no 47, 2017 East-West Trade Capacity Deployment (Last 12 months) The idle containership fleet of over 500 teu has risen slightly over the past two weeks to reach 126 ships for 487,400 teu as at 11 December. The slower demand as the year-end approaches has resulted in higher idling numbers for all size segments. Source: Alphaliner Monthly Monitor December, 2017 Source: Alphaliner Monthly Monitor December, 2017
II. World Economy Composite leading indicators continue to point to stable growth momentum in the OECD area The Euro zone manufacturing PMI rose to 60.1 in November, its best reading apart from April 2000 s series-record high. The U.S. manufacturing expanded in November as the PMI registered 58.2 percent, a decrease of 0.5 percentage points from the October reading, indicating growth for the 15th consecutive month. China s PMI registered at 51.8 percent with an increase of 0.2 percentage points in November. Source: Institute for Supply Management (ISM); Markit Economics; China Federation of Logistics & Purchasing (CFLP)
Personnel Updates 姓名 Name Original Position New Position Effective Date 王新怡 Nicole Wang YES Logistics Corporation Assistant Vice President AHDP YM HQ 2017/11/20 林文博 Vincent Lin President & COO & Chief Administrative Officer YM HQ President & COO YM HQ 史美琦 Michael Shih Vice President AHDP YM HQ Chief Administrative Officer/ YM HQ Senior Vice President AHDP YM HQ ICDP YM HQ ICDP YM HQ 張德瑞 Terri Chang Deputy Vice President Leader of ICDT YM HQ Deputy Vice President Leader of ICDT YM HQ Leader of ICCS YM HQ ITDP YM HQ ITDP YM HQ 陳嘉偉 William Chen Deputy Vice President Deputy Vice President Leader of ITIC YM HQ Leader of ITIC YM HQ Leader of ITKL YM HQ 傅冠昇 Carlos Fu Assistant Vice President FAIA YM HQ Yang Ming (America) Corp. (NJS) 林玠志 C. C. Lin Senior Manager EMMS YM HQ Assistant Vice President EMMS YM HQ Yang Ming Yang Ming 田維真 Vivi Tien Senior Manager (Netherlands) B.V. (Netherlands) B.V. Assistant Vice President Yang Ming (Belgium) Yang Ming (Belgium) N.V. N.V. 許國龍 K.L. Hsu Senior Manager CMBC YM HQ Assistant Vice President CMBC YM HQ HBSO YM HQ HBSO YM HQ 呂亭玉 Tina Lu Senior Manager Leader of HBSO YM HQ Assistant Vice President Leader of HBSO YM HQ 莊錦芳 Amber Chuang Senior Manager CANA YM HQ Assistant Vice President CANA YM HQ 丁太郎 Tom Ting Senior Manager APCC YM HQ Assistant Vice President APCC YM HQ 王世良 James Wang Senior Manager LQAA YM HQ Assistant Vice President LQAA YM HQ 范照鵬 Andy Fan Senior Manager FREE YM HQ Assistant Vice President FREE YM HQ 許淑惠 Julia Hsu Senior Manager EMSA YM HQ Assistant Vice President EMSA YM HQ 陳士元 Jerry Chen Senior Manager CACH YM HQ Assistant Vice President CACH YM HQ 卓秉弘 Elvis Cho Senior Manager ITKL YM HQ Senior Manager ITTP YM HQ 張志輝 Peter Chang Senior Manager ITTP YM HQ Yang Ming (UK) Limited 陳祖望 T.W. Chen Acting Senior Manager EMFA YM HQ Senior Manager EMFA YM HQ 邱建豪 Eric Chiou Acting Senior Manager CMAC YM HQ Senior Manager CMAC YM HQ 謝明 Frank Shieh Acting Senior Manager EMBS YM HQ Senior Manager EMBS YM HQ 樊明杰 Jet Fan Acting Senior Manager AGIM YM HQ Senior Manager AGIM YM HQ 吳佳茹 Catheline Wu Manager ICCS YM HQ Acting Senior Manager ICCS YM HQ 王為宸 Phil Wang Deputy Manager FAIA YM HQ Acting Senior Manager FAIA YM HQ 賴來增 James Lai Manager ICDT YM HQ Manager TKLC YM HQ 陸士偉 Wilson Lu Deputy Manager Yang Ming Line (India) Pvt. Ltd. Manager Yang Ming Line (India) Pvt. Ltd. 劉元龍 Eric Liu Manager FAMA YM HQ Leave 胡雅蓉 Joyce Hu Yang Ming Shipping Europe GmbH Kuang Ming Shipping Corporation 顏宏欣 Daley Yen Yang Ming (America) Corp. (NJS) Project Manager ITIC YM HQ 2017/12/4 宋雲正 Winslow Sung Yang Ming (UK) Limited Yang Ming Shipping Europe GmbH 6 黃志傑 Elvis Huang LODP YM HQ Yang Ming Anatolia Shipping Agency S.A. 6 鍾福宗 Alton Chung CBDP YM HQ Yang Ming (UAE) L.L.C. 6 New Elegance with Original Beauty Jade art no.129 Title: Buddhist aura shines all the world Materials: Ming dynasty horn, K-gold, emerald, white diamond, and red agate Description: The Buddha head engraved on a piece of horn looks dignified and solemn. Its surface bears the sign of its age. With a shallow and benevolent smile, the original product measures 5cm-by-4cm. Designer s philosophy: The bat at the top of the Buddhist sculpture is made of K-gold, emerald and white diamond. The pronunciation of character for bad, Fu, is same as that for blessing. There is also a pattern for longevity. So, it is believed the product with bring both blessing and longevity to the possessor and their family. Art designed by Rita Chang, APIS, YMHQ