Yang Ming dismisses merger speculation

Taiwan’s Yang Ming Marine Transport Corp has quashed speculation that it is up next in container shipping’s greatest year of consolidation.

With the dramatic consolidation seen across the container shipping sector this year, Yang Ming, which has lost $407m in the first three quarters, finds itself in a precarious position. Now the world’s ninth largest containerline with a fleet of 565,766 slots according to Alphaliner, Yang Ming is set to join new container grouping THE Alliance next April. Increasingly analysts are suggesting that in the altered dynamics of the container trades at the end of 2016, a global liner needs to have a fleet of more than 1m teu in order to compete.

Last week Taiwanese politicians discussed what to do with the line, in which the state has a 33% stake. Various merger options were discussed.

However, a spokesperson for Yang Ming has told Splash the line has no intention to join forces with anyone else at the moment.

“Yang Ming has been actively improving its financial structure, reducing its operational risk, and enhancing its long-term competitiveness showing its determination to protect all customers and shareholders’ rights,” a spokesperson told Splash, adding that there was no “evaluation or plan” for any mergers.

Last month Yang Ming’s chairman Bronson Hsieh publically dismissed speculation that his company and fellow Taiwanese liner Evergreen would merge. Hsieh used to work at Evergreen before joining Yang Ming in June.

Shares in Yang Ming closed in Taipei today down 5.98% to an all-time low of NT$4.72.

Source: Splash 24/7 (LF)

Source: Splash 24/7