TS Lines’ net benefit significantly increased to TW$6 billion (US$213.6 million), surpassing the Taiwan transporter’s past assumptions for TW$3 billion (US$106.8 million), as the container crunch sent rates taking off.
The intra-Asia transporter’s income expanded 13% to TW$30 billion (US$1.07 billion) as it dispatched 1.72 million TEU a year ago, up from 1.64 million TEU in 2019.
TS Lines CEO and Chairman, Chen Te-sheng, a previous Wan Hai leader, said during his 40-year profession, he has never seen cargo rates arrive at such cosmic levels.
Cargo rates for the intra-Asia exchanges, initially went somewhere in the range of US$80 and US$150/TEU, shot up to US$800/TEU in Q4 2020, as the hardware deficiency on long stretch courses spread to provincial services.
Chen accepts the circumstance in 2021 remaining parts great for transporters, as blockage in European and US ports is sustained. He said this shows nothing is outlandish and that the organization is diverting current income to advance arranging, to address future difficulties.
As per Chen the organization started forcefully buying recycled ships and dispatching newbuildings as contract rates expanded generously a year ago, and doesn’t preclude getting more ships, the organization currently possesses 24 vessels, the greater part its 46 boat armada.
As resource esteems have appreciated altogether, contract costs are fundamentally higher, advocating a higher extent of claimed ships. It presently costs US$20,000/day to contract a 2,700TEU boat, however on the off chance that the vessel is possessed, the every day costs are US$9,000, said Chen.
TS Lines has bought seven recycled ships for TW$3.8 billion (US$134 million) and two newbuilds will join the armada this year. The organization will likewise get 11,000 new holders, which cost TW$900 million (US$31.74 million).
“We trust that these capital ventures will refute high working expenses coming about because of sanctioned vessels and rented containers in the following three years,” added Chen.”