Yang Ming’s Kuang Ming Shipping Expands Fleet with New Orders
Taiwanese shipping company Yang Ming has made a significant move in the newbuilding market through its bulk shipping subsidiary, Kuang Ming Shipping. The company has placed orders for four ultramax bulk carriers in Japan, marking a strategic investment in the dry bulk sector. The total value of these contracts ranges from NT$4.9 billion to NT$5.4 billion, equivalent to approximately $155 million to $171 million. This decision reflects Kuang Ming’s confidence in the long-term demand for dry bulk shipping.
The orders include two ultramax vessels from Nihon Shipyard and Imabari Shipbuilding, each priced between NT$1.2 billion and NT$1.4 billion. Additionally, two more ultramaxes have been contracted with Oshima Shipbuilding in collaboration with Sumisho Marine, at similar price points. While the delivery dates for these new vessels have not been disclosed, the orders signify a renewed commitment to expanding Kuang Ming’s operational capabilities.
Kuang Ming’s Fleet and Historical Context
Currently, Kuang Ming Shipping operates a fleet of 11 bulk carriers, which includes 10 owned vessels ranging from ultramax to kamsarmax sizes, along with a long-term chartered capesize vessel. The company was established in 1990, initially serving as a booking agent to support Yang Ming’s container operations. In 2008, Kuang Ming ventured into dry bulk shipping as part of Yang Ming’s diversification strategy.
This latest order is particularly noteworthy as it marks Kuang Ming’s first newbuilding initiative in nearly a decade. The last time the company placed new orders was between 2014 and 2015, when it contracted four ultramaxes from Iwagi Zosen. Those vessels were delivered between 2016 and 2018, demonstrating Kuang Ming’s commitment to maintaining a modern fleet.
The recent orders not only highlight Kuang Ming’s strategic growth but also underscore the broader trends in the shipping industry, where companies are increasingly looking to invest in new vessels to meet rising demand. As the global economy continues to recover, the dry bulk sector is poised for growth, making this a timely investment for Kuang Ming Shipping.
