U-Ming Marine Transport Corp (裕民航運), a member of the Far Eastern Group (遠東集團), yesterday said that industry sentiment among global bulk shippers might show signs of a strong recovery in the second half of next year.
In the mid to long-term, shipping demand for infrastructure in Asian countries is expected to be the major support for the industry, U-Ming Marine president C.K. Ong (王書吉) said.
“Analyzing the industry’s fundamentals, bulk shippers may experience a year of suffering before starting recovery from the second half of next year,” Ong told reporters after the Taipei-based company’s annual general meeting.
Wang attributed the weak industry sentiment this year to the long-running problem of oversupply and sluggish demand from China for coal — one of the major commodities carried by bulk ships.
However, after the Chinese-led Asian Infrastructure Investment Bank (AIIB) becomes operational, it could generate investments of US$5.7 trillion in the next 10 to 20 years, making it a major growth driver for the industry, Ong said.
U-Ming is carefully watching shipbuilding trends in the market, hoping to maintain its competitiveness, he said.
Douglas Hsu (徐旭東), chairman of both Far Eastern Group and U-Ming Marine, said major iindustry players plan to build larger bulk ships to reduce unit costs.
U-Ming is scheduled to take delivery of four capesize bulk ships, three Panama bulk carriers and four handy vessels by the end of 2017, the company said in its annual report to shareholders.
The establishment of various free-trade alliances around the globe and growing opportunities in the Middle East could offer solid support for the industry, Hsu said.
The company might also benefit from oil tanker business via Global Energy Maritime Co Ltd (環能海運), which is a joint venture between U-Ming, Chinese Maritime Transport Ltd (中國航運) and state-run oil refiner CPC Corp, Taiwan (台灣中油), Hsu added.
The company posted a net income of NT$64.28 million (US$2.06 million) for the first quarter, or NT$0.07 per share, a significant decrease from NT$361.68 million, or NT$0.42 per share, a year earlier, the company’s filings to the Taiwan Stock Exchange showed.
Consolidated sales totaled NT$3.03 billion in the first five months of the year, down 17.69 percent from the same period last year, data showed.
Shareholders yesterday approved the company’s plan to pay a cash dividend of NT$2.2 per share.
PRESSURE FROM THE US: Huawei said a decision by the US was ‘arbitrary and pernicious, and threatens to undermine the entire [technology] industry worldwide’ Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has stopped new orders from Huawei Technologies Co (華為) in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported yesterday, citing multiple sources. The orders that TSMC took before the new ban and those that were already in production are not affected, and could continue to proceed if those chips could be shipped before the middle of September, the report said. TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, on Thursday last week announced plans to build a US-based plant and on Friday added that
MediaTek Inc (聯發科), which designs chips used in mobile phones, yesterday launched its new 5G Dimensity 820 system-on-chip (SoC), targeting mid-range to high-end smartphones. The company expects the penetration of 5G technology to gain pace quickly this year and not be affected too much by the COVID-19 pandemic. MediaTek said it aims to expand its 5G chip portfolio this year to cover phones of varying prices after it shipped its first 5G SoC, the Dimensity 1000, last quarter. The Dimensity 820, made by Taiwan Semiconductor Manufacturing Co (台積電) on 7-nanometer technology, is designed for mid-range to high-end 5G phones. MediaTek expects to infiltrate the
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before