SIMIC

Speaking at an investors' conference in Taipei, Yang Ming president Patrick Tu said the five new vessels would be used mainly for its US operations.

Asked whether Yang Ming had plans to order more new vessels, Mr Tu said that it is cautious about purchases, as environmental regulations for shippers remain unclear.

The company might consider renting vessels, but surging rental rates mean the situation requires close examination, he said.

Yang Ming this year would concentrate on its operations in North America and Europe with the expectation that freights rates and shipping demand in the markets would remain stable amid a decline in Covid-19 infections, the company said.

If it is to order new ships, it would prioritise those with a capacity of 15,000 TEU, which are suitable for those markets, the shipping line said, adding that it would also consider new ships with capacity of 1,200 TEU to 1,800 TEU for Southeast Asian markets.

Freight rates, which have tumbled, are forecast to rebound this month or in May if Covid-19 infections in China slow and the Russia-Ukraine war ends, Yang Ming said, adding that rates are likely to remain comparatively high throughout the year, reports the Taipei Times.