Yang Ming Expands Owned Fleet with Early Ship Purchases

Taiwanese liner operator Yang Ming Marine Transport is continuing to grow its owned fleet by opting to end the charters of two 12,000 TEU ships ahead of schedule.

In a recent filing with the Taiwan Stock Exchange, the company disclosed that it has invested US$186 million to acquire the vessels, only about three years into their originally planned 10-year charters.

While Yang Ming did not specify the names of the ships, it did reveal that the vessel owners were Paraiso Shipping, a Panama-based special purpose vehicle affiliated with Japanese shipbuilder Imabari Shipping’s tonnage provider Shoei Kisen Kaisha, and I-S Container, which is partly owned by Imabari and Century Tokyo Leasing Corporation.

According to VesselsValue, the ships in question are the YM Trust, built in 2021, and the YM Trophy, completed in 2022. These two vessels represent the seventh and eighth ships that Yang Ming has acquired through similar early purchase agreements since 2023.

Many liner operators, including Yang Ming, are benefiting from substantial cash reserves accumulated during the Covid-19-driven boom and the ongoing Red Sea crisis. Yang Ming currently holds over US$2 billion in cash. The company’s previous ship acquisitions were also from Shoei Kisen-affiliated entities and I-S Container.

In May, Yang Ming purchased three 12,000 TEU ships - YM Together, YM Throne, and YM Trillion - for US$297 million. It is believed that the carrier secured these vessels at a competitive price, as their market values are estimated to be around US$140 million each. In August 2023, Yang Ming further expanded its fleet by acquiring three 14,000 TEU ships - YM Warranty, YM Wellspring, and YM Wellbeing -for approximately US$310 million.

With a recently appointed management team, Yang Ming is also reportedly considering placing newbuilding orders for 24,000 TEU ships.