Shipping bigwigs New Year ‘s plan

Years have passed, the class is also on, and to the heart of the time, the list of 2017 plans to the time. Perhaps a lot of people have quietly set a small ambition, such as “earning a billion.”

Shipping bigwigs are no exception. Today we look at their forecasts for the shipping market in 2017, and are prepared to do something in the new year Han.

Maersk CEO Shi Suoren: to meet the global shipping market recovery

Soren Skou, chief executive of Maersk Group, the world’s largest shipping company, said at the World Economic Forum in Davos that the freight index for the global container shipping market has doubled over the past nine months and that the global market has emerged Signs of recovery.

“There is a rebound in the market just because carriers are pulling out of the market, but these companies are losing money every day, and continuing to do so is clearly unsustainable,” says Skou. “Currently, more than 5 percent of the world’s container ships are idle , Which is helping to support prices, and we are surprised that global trade is growing less than we expected five years ago. ”

The BDI index rose about 150% last year. Some speculate that Trump’s spending on infrastructure could boost the industry.

“While Trump has been advocating protectionist policies, we do not worry about any potential recession in global trade during President Trump’s tenure,” Skou said. Skou stressed that the US tax reduction plan can help the shipping industry.

China Merchants Group Li Jianhong: in the “quality” words and effort, in the “effect” on the word to make an issue

Li Jianhong analysis, the macroeconomic situation in 2017 the overall available “change, internal stability, deep tone” to sum up. In this regard, we must actively adapt to change, to change strain to new should be new. 2017 and for some time to come, China Merchants Group’s focus is on the “two mention”, namely: to enhance the capacity, quality and efficiency. Through the “two mention” to promote the Group’s world-class enterprise construction.

On the quality and efficiency, Li Jianhong said that we should be in the “quality” words and effort, in the “effect” on the word to make an issue. For “quality” and “efficiency”, must have a comprehensive and profound understanding. “Quality” is the standard, including quality, characteristics, potential, quality, quality of the five aspects. “Effect” is the result, covering the effectiveness, efficiency, efficiency, effectiveness, efficiency five points.

“Quality” and “efficiency” as China Merchants Group, the next step in the development of the strategic focus of the need to continue in practice, enrich and deepen their understanding and understanding. “Quality” is the basis of “efficiency”, “efficiency” is the result of “quality”, must be quality to promote efficiency, to effect quality, achieve “quality”, “effect” good interaction.

On the key work in 2017, Li Jianhong said that in 2017, will usher in the party’s convening and the 145th anniversary of the establishment of China Merchants, but also the Group’s in-depth implementation of the “thirteen” strategic plan to connect the key year, Three-year term objectives and two companies in the middle of the three-year strategic assessment of the year. Do a good job in the year, consolidate the good momentum of development, has very important significance. 2017 to carry out the work, it is necessary to focus on the completion of the business tasks, but also focus on strategic and planning to promote, for the next three years to lay the foundation for growth.

Yang Zhiming: promote the capital increase plan

Recently, Yang Zhimin, chairman of Yangming Shipping, said this year, an increase of 3.4% increase in supply of accommodation, and freight demand growth of 1.6% closer, plus far Europe and the United States freight line are good, the worst situation has passed. Even Trump became president of the United States, but the manufacturing back not so fast, this year’s operation must be better than last year.

For the merger issues, Xie Zhijian said that from the experience of maritime history, the merger is a process, but the result is not necessarily good to Maersk, for example, although the world’s largest shipping business, but less than Wanhai million, show size is not equal to Profit guarantee, the flight operators still have to find their own development niche.

Xie Zhijian took over as chairman of Yang Ming in June last year, the first time the media talked about the shipping business and Yangming economy. He said the shipping sector supply growth rate from the original November 2016 estimated 4.8%, has been reduced to 3.4%, the control space demand growth rate remained 1.6%, the gap between the two significantly narrowed, loading rate increases, will Freight to provide some support, help the shipping business.

Xie Zhijian said that much of Europe and the United States line freight rates are sharply higher this year, turn for the better. Although Trump became president of the United States, will vigorously promote the manufacturing industry back to the United States, but “not so fast”, after all, to build a factory for several years, a few years back to the United States manufacturing freight is not so much, limited.

Xie Zhijian noted that the current economic climate is like the financial tsunami, in 2009 when the supply rate of accommodation increased by 5%, but a substantial decline in demand rate of 9%, resulting in a global shipping company about 20 billion US dollars; A significant increase of 14%, but only 9% increase in space supply in 2010 to make a big profit.

Progress in capital increase, Xie Zhijian said, is expected to complete the first quarter of the first phase, for Taiwan’s “Ministry of Communications”, “Executive Yuan”, Taiwan Shipping and Taiwan Chinachem Investment Company and other shareholders to increase capital, the second phase and strategy Financial investors and financial investors, including logistics, terminal operators and financial investors, such as life insurers.

Hyundai Merchant Marine (HMM) CEO C.K. Yoo: Implementation of HMM’s recovery plan

(HMM) CEO CK Yoo said, HMM and 2M strategic cooperation agreement, as well as Heung-A Shipping (Heung-A Shipping) and the long-Jin Merchant Marine (Sinokor Merchant Marine) together to form HMM + K2 alliance will be in April 2017 and March officially began operations. C.K. Yoo and his team are currently working on both of these things.

“We are currently busy redeploying our fleet, deciding on port routes and entering into contracts with new anchored ports,” CK Yoo said in a media interview at HMM’s Seoul headquarters. “We are also working on providing our employees with New route services. ”

After 2016, 2017 is a very important year for HMM, and C.K. Yoo also explained to the media three important factors for the development of HMM.

First, customer support. To ensure continued customer trust and support, including Hanjin bankruptcy after the diversion of customers, HMM is the new year’s first and most important goal. “We are very grateful to our customers for their continued support, they appreciate our company so that they always understand the development of the situation, whether good or bad, they also appreciate our bankruptcy in Korea, did not take advantage of the situation at the time For their own short-term interests. ”

To meet the sudden shortage of capacity, HMM and other shipping companies in Asia – Europe and the Pacific routes are deployed on the overtime ship, many of these overtime ships eventually become a fixed route. These increased cargo volumes allowed HMM to gain market share on its major routes. According to foreign media data, compared to 2015, HMM by the end of 2016, when its Asian – American West Coast route market share rose from 11 to 5, Asia – Europe routes rose from 10 to 7 .

The main question now is whether HMM can retain these customers. “The ability to retain these customers depends on whether the customer is satisfied with our service and we are committed to working hard to provide the best service and price to our customers,” says C.K. Yoo.

Second, reduce costs. HMM’s financial position has improved and the debt rate has dropped from over 1000% to less than 200%. South Korean government’s 5.7 billion US dollars to support the domestic shipping industry’s plans for the HMM is also a good news. HMM has plans to order five new 2000-3000TEU ships to replace those that will expire later this year.

Increasing the carrier rate and the profitability of the company depends to a large extent on whether it can save more operating costs to provide more competitive tariffs. This is not an easy task considering the financial difficulties HMM has faced in recent years and the efforts to reduce costs.

“The two major cost reductions are renegotiation of rental rates and investment in terminal operations,” said CK Yoo. “” We have negotiated with the shipowners to lower the charter rates, which we can say have been successful, The owner agreed to lower the rent in exchange for the equity.

The investment in terminal infrastructure is aimed at reducing the cost of terminal operations while providing efficiency and service levels. HMM currently has two overseas terminals, one in Kaohsiung, Taiwan, the other in the United States northwest Tacoma (Tacoma). HMM is also working with MSC to acquire Hanjin’s US stake in Total Terminals International LLC, which operates ports in Long Beach and Seattle.

HMM is also the preferred bidder for the acquisition of Hange Algeciras Algeciras wharf. The acquisition will include Hanjin’s 25% stake in the port and the remaining shareholding held by IBK Securities and Korea Investment Partners. “We are currently investigating the feasibility of acquiring Hanjin’s terminal assets in Japan (Tokyo, Osaka) and Taiwan (Kaohsiung),” said C.K. Yoo. “In the long term, we will strengthen our alliance with HMM + K2 alliances to invest in more Asian terminals.”

The strategic cooperation agreement with 2M, and the synergies between the HMM + K2 coalition, allow HMM to provide better service and competitive pricing. “By combining the strengths of both, our goal is to provide diversified, more competitive services and lower operating costs.”

Third, the external factors. The development of the company will depend to a large extent on external factors, in particular the development of the global trading environment and industry structure changes. Including the ongoing integration of the shipping industry, can have a positive impact on supply and demand balance and freight rates, as one would expect.

“If you asked me three or four years ago, the shipping industry will be integrated, my answer will be negative, but now we are witnessing its occurrence, and can not rule out the emergence of more integration.” CK Yoo said.

“With the integration continues, the owner of the choice will become smaller, in theory, the tariff will rise, but it can not guarantee that will improve freight depends largely on how the shipping company decision, Whether the competition will become more intense, or whether there will be another different form, to support a more healthy industry environment.