讀後心得

Wan Hai said at today's conference that regarding the revitalization policy for the domestic shipbuilding industry proposed by U.S. President Trump, there are concerns in the market that ships built in China may face high tariffs. However, Wan Hai emphasized that its West Coast and East Coast routes do not utilize Chinese ships, so the impact is limited. Despite a slight decline in global freight rates, during negotiations on U.S. routes, customers are willing to accept prices that are 20% to 30% higher than last year, indicating confidence in transportation demand in the market. The company plans to add three new ships of 13,000 TEU before 2025, gradually phasing out older vessels and high-rent chartered ships. Over the next five years, they will receive 30 new ships, increasing capacity by more than 310,000 TEU, demonstrating confidence in the mid to long-term market. Today's stock price dropped 0.47%, closing at 84.2 yuan.

▲Wanhai's press conference today. Schematic diagram.

Wanhai stated during its press conference today (25th) that the recent proposal by former U.S. President Trump to revitalize the American shipbuilding industry has raised market concerns about high tariffs that Chinese shipbuilding may face. However, Wanhai emphasized that the company does not use ships manufactured in China for its West and East Coast routes, thus the impact is limited.

Additionally, although global freight rates have slightly receded, in the long-term contract negotiations for U.S. routes, customers are generally willing to accept prices that are 20 to 30 percent higher than last year, indicating that the market still has confidence in transportation demand. Wanhai addressed two major concerns regarding the market during the press conference.

• First is the potential impact of U.S. policy direction on the shipping industry. Especially with Trump possibly returning to politics and actively promoting domestic shipbuilding, there is external concern about operators using ships manufactured in China. Wanhai's General Manager stated that the company does not use Chinese shipbuilding on its West and East Coast routes, and currently, the proportion of Chinese-built ships in the fleet is less than ten percent, and they are only used in the Asian region, thus the impact on Wanhai is limited.
• The other focus is the trend of freight rates on U.S. routes. Wanhai pointed out that since last year, the ongoing Red Sea crisis has led to an imbalance in market supply and demand. Even though prices have slightly retreated recently, it hasn’t changed the overall tense situation in the market. The company has observed that customers on U.S. routes are generally willing to accept prices that are 20 to 30 percent higher in this year's long-term contract negotiations compared to last year, indicating that concerns about insufficient transport capacity still exist.

Wanhai also announced a fleet optimization plan, expecting to have three new 13,000 TEU ships in operation by 2025, and plans to gradually phase out old ships and those under high-rent contracts. Over the next five years, the company will receive a total of 30 newbuilds, with total capacity increasing by more than 310,000 TEU, showing the company's confidence in the mid-to-long-term shipping market.

Today's stock price fell by 0.47% or 0.4 NT dollars, closing at 84.2 NT dollars.

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