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VNYang Ming Marine Transport has issued a statement to refute media speculation that the departure of two independent directors on 2 September was due to slow and inefficient decision-making that caused the Taiwanese liner operator to miss out on opportunities to expand its fleet when freight rates were at all-time highs in the past year.
Controversy arose after the two directors, Wang Tze-chun and Chen Jei-fuu, quit the board simultaneously, the first time any listed Taiwanese liner operator saw more than one concurrent board departure. Both men cited personal reasons for their resignations, prompting conjecture by local media that there were conflicts with Yang Ming’s management.
The Taiwanese container shipping company had taken its time to order newbuildings even as almost all its peers rushed to do so when freight rates peaked in 2021, with management saying it preferred to be cautious. In January, however, Yang Ming said it would go ahead to order five LNG-powered 15,000 TEU ships, although a shipbuilder has not yet been chosen.
The company, partly owned by the Taiwanese government, had suffered a string of losses prior to 2020 and needed recapitalisation in 2017.
In response to the media speculation surrounding the departures of Wang and Chen, Yang Ming said that the directors are the ones who make the final decisions for the company.
Yang Ming stated that “the international container market depends on supply and demand, and is affected by environmental regulations, tonnage supply and other rapid changes. In order to properly respond to risks, the directors have to put forward suggestions to the company, in line with the company’s medium- and long-term business development plan.
“In terms of shipbuilding strategy, Yang Ming has been monitoring the shipbuilding market, energy development trends, cooperation with THE Alliance members, the company’s business development needs, the age and the most suitable ship type. The media has not understood the roles of the company’s board of directors and this is regrettable.”
Martina Li
Asia Correspondent
