Chapter 290: [The big wheel is rolling! 】
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Chapter 290【The big wheel is rolling! 】
May 1959, Dongying, Global Shipping Division.
Wu Guangyao, He Yuanzhang, and Gao Ke are discussing about ordering a new ship again.
In May 1957, after Global Shipping implemented the 400 million U.S. dollar plan, the total loan amount was 120 million U.S. dollars.
In two years, the net profit of Global Shipping (above 2.3 million tons of deadweight) was 260 million, and the monthly net profit was only less than 11 million US dollars;
During the closure of Suez, the monthly profit of Global Shipping reached 40 million U.S. dollars.
There are three reasons to summarize, leading to this:
First: After the freight has skyrocketed, it has plummeted. In the later period, the price of European and American routes fluctuates between US$12 and US$15, and the price of Dongying routes is between US$7 and US$9;
Second: Business shrinks. In the past two years, the business of Global Shipping is considered to be the most fully arranged fleet among all its peers, and it is about 80% full. The reason is because of Wu Guangyao's far-sightedness, he signed a three-year memorandum of cooperation with long-term customers in Dongying to ensure that the business will give priority to global shipping. The same is true in Europe and the United States. During the closure of Suez, Global Shipping did not take the lead in raising prices and offered a 5% discount.
Third: Cost increase. After the Suez Canal was managed by Egypt, tolls soared by 35%, and various factors such as a substantial increase in the salaries of seafarers on Hong Kong Island have led to a substantial increase in costs. Of course, the salaries of seafarers in countries such as Europe, America and Dongying have also increased accordingly.
In the past two years, the loan repayment was 120 million U.S. dollars. The container terminal in Sing Tao and London invested about 20 million U.S. dollars, and the balance on the account was exactly 120 million U.S. dollars.
"Boss, the Global Shipping Research Office recently concluded that the shipping situation in Europe and the United States has taken the lead in improving; as you said, the industries in Europe and the United States began to flourish in the 1960s, and there is a trend now. The recovery in East Asia is slower. Although the price has returned to about US$8, the business is still only 80% of the previous business. It is good that other Asian fleets can have 70% business. Long-term chartered fleets don’t have to worry about this issue, they are more popular." He Yuanzhang Opened his mouth and said.
Wu Guangyao nodded, this is expected; after a sharp rise, there will be a sharp fall, and then rise again. This is the law of shipping.
The Global Shipping Research Office mentioned by He Yuanzhang was proposed by Wu Guangyao; it hired talents with rich experience in global shipping to form a team. They usually work around the world, gather data, and then summarize.
Although Wu Guangyao understands the general trend, he still needs people to do the details.
"Do you think, how about we sell part of Dongying's old ships (about 30 years old)?" Wu Guangyao said.
He Yuanzhang and Gao Ke immediately said in unison: "No!"
Then He Yuanzhang motioned to Gao Ke to say first that Gao Ke, as the person in charge of Dongying, naturally has a great say!
"Boss, these ships can be used for three to five years if they go smoothly, and they can be used for retail leases or refitting container ships; if they are sold, we are equivalent to investing in rivals. The point is that these ships are not valuable, they can only use They will be valuable only when they get up. Even if these ships recycle scrap iron, they cannot flow into other shipowners on Hong Kong Island."
He Yuanzhang continued: "Yes, boss. And I guess, you want to sell your fellow Bao Yugang! But boss, don’t forget, Bao Yugang’s ship business has not stopped in the past two years. He has developed into a shipowner with a deadweight of 100,000 tons. And I found that he is very popular with employers in Dongying. I think it's probably because he likes a long-term contract with a one-year lease!"
Wu Guangyao woke up suddenly after hearing the words of the two!
I’m too naive. Bao Yugang is obviously his ‘great enemy’, and he still thinks about the feelings of his fellow countrymen. The most important thing is that he can’t have this kind of ‘enemy behavior’.
Wu Guangyao said modestly: "You two reminded me well! Indeed, Bao Yugang's identity as a banker makes him a good fish in the shipping industry. I heard that he has also obtained the LC letter of credit from Dongying Bank. It seems that he may Come from behind!"
"It's not obvious that he is coming from behind, but he is indeed a stable businessman who knows how to use the bank." He Yuanzhang said pertinently.
Wu Guangyao thought for a while, and then said: "In this case, you remember one thing, that is when Bao Yu first entered the European and American oil transportation field, our global shipping business in Europe and the United States must appropriately change the business policy. For We can combine long-term lease contracts and short-term lease contracts for our loyal major customers and old customers to get their favor! Similarly, the three-year memorandum of cooperation for Dongying old customers is about to expire, and we can also sign a part of the long-term The contract can be regarded as stabilizing them!"
Wu Guangyao also decided that the follow-up business policy should be slightly more conservative;
From the experience of later generations, a large part of the reason why Bao Yugang came from behind is that he likes to lease long-term contracts of one to three years.
In the eyes of the bank, this mode of operation is obviously not too risky, so the bank will choose the loan.
In addition to his business method, he has gained a good impression in Dongying. The government, banks, customers, and shipyards all like him and give him all kinds of convenience.
Dongying Shipyard in the late 1960s was full of orders and could only suspend receiving business; but everyone would sell Bao Yugang’s face and take Bao Yugang’s orders. This is an advantage.
There is another very important reason why Wu Guangyao changed his business strategy!
That is, global shipping is developing too fast. Although it is not in debt, the foundation (customers) also needs to be stabilized.
Wu Guangyao thought for a while and said to the two executives: “We Global Shipping has another tiered shipping price, which is set according to the age of the vessel. For example, a 30-year old ship only costs 70% of the freight; a 20-year old ship , The freight is only 80%; in this way, those customers who have conflicts with the old ship may think that the old ship is a good deal. After all, our global shipping is guaranteed by three guarantees (time guarantee, preservation, and insurance)."
"Good way!" the two said immediately.
Both believe that whoever wants to make quick money does not want to make it, but it is impossible to make it all the time;
Especially to appease the old customers. Those who do shipping know that the business is the most important, and the freight is the second.
"For the specific implementation plan, you call the management to study it in detail, I will not participate!"
"Yes, boss!"
Next, we will discuss how many 100,000-ton oil tankers and 70,000-ton cargo ships will be built this time.
The Second Middle East War (Suez Canal Crisis) dealt a huge blow to the world shipping industry. Although the canal has resumed operations, oil companies have lost confidence in its reliability. European and American oil companies have sparked fierce disputes over the safety of the Suez Canal and the expansion of oil pipelines. Obviously, both the canal and the oil pipeline are easily cut off. Then there is an alternative, which is to use a larger tanker to detour the Cape of Good Hope route in Africa. However, ship owners generally believe that large ships are expensive, fuel costs are too high, and they are not easy to build.
Japanese shipbuilding companies smelled business opportunities from it, and they quickly used practical actions to break this assertion. In February 1959, the Kure Shipyard in Japan built the world's first oil tanker of more than 100,000 tons, the Universe Apollo (Universe Apollo). The ship is 290 meters long, has a total power of 27,500 shaft horsepower, a load of 104,500 tons, and a speed of 15.5 knots.
Facts have proved that oil tankers of more than 100,000 tons not only meet safety standards, but also have cost advantages.
Usually, it takes about 16,000 tons of steel to build a 100,000-ton tanker, and 24,000 tons of steel to build two 50,000-ton tankers.
And the larger the tanker, the more crude oil that can be transported in a single ship and a single voyage, and the lower the average fuel consumption per ton.
Wu Guangyao has read "Bao Yugang Biography" and clearly remembers the 100,000-ton tanker and 200,000-ton tanker, behind which are the main tankers of global shipping.
That’s why Wu Guangyao is sure that he can't go wrong with choosing a 100,000-ton oil tanker!
Finally, everyone decided to build 12 100,000-ton tankers and 5 70,000-ton freighters.
In this way, the deadweight of the new global shipping ship reached about 5.1 million tons, which is the level of Onassis in the late 1960s.
(End of this chapter)
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Chapter 290【The big wheel is rolling! 】
May 1959, Dongying, Global Shipping Division.
Wu Guangyao, He Yuanzhang, and Gao Ke are discussing about ordering a new ship again.
In May 1957, after Global Shipping implemented the 400 million U.S. dollar plan, the total loan amount was 120 million U.S. dollars.
In two years, the net profit of Global Shipping (above 2.3 million tons of deadweight) was 260 million, and the monthly net profit was only less than 11 million US dollars;
During the closure of Suez, the monthly profit of Global Shipping reached 40 million U.S. dollars.
There are three reasons to summarize, leading to this:
First: After the freight has skyrocketed, it has plummeted. In the later period, the price of European and American routes fluctuates between US$12 and US$15, and the price of Dongying routes is between US$7 and US$9;
Second: Business shrinks. In the past two years, the business of Global Shipping is considered to be the most fully arranged fleet among all its peers, and it is about 80% full. The reason is because of Wu Guangyao's far-sightedness, he signed a three-year memorandum of cooperation with long-term customers in Dongying to ensure that the business will give priority to global shipping. The same is true in Europe and the United States. During the closure of Suez, Global Shipping did not take the lead in raising prices and offered a 5% discount.
Third: Cost increase. After the Suez Canal was managed by Egypt, tolls soared by 35%, and various factors such as a substantial increase in the salaries of seafarers on Hong Kong Island have led to a substantial increase in costs. Of course, the salaries of seafarers in countries such as Europe, America and Dongying have also increased accordingly.
In the past two years, the loan repayment was 120 million U.S. dollars. The container terminal in Sing Tao and London invested about 20 million U.S. dollars, and the balance on the account was exactly 120 million U.S. dollars.
"Boss, the Global Shipping Research Office recently concluded that the shipping situation in Europe and the United States has taken the lead in improving; as you said, the industries in Europe and the United States began to flourish in the 1960s, and there is a trend now. The recovery in East Asia is slower. Although the price has returned to about US$8, the business is still only 80% of the previous business. It is good that other Asian fleets can have 70% business. Long-term chartered fleets don’t have to worry about this issue, they are more popular." He Yuanzhang Opened his mouth and said.
Wu Guangyao nodded, this is expected; after a sharp rise, there will be a sharp fall, and then rise again. This is the law of shipping.
The Global Shipping Research Office mentioned by He Yuanzhang was proposed by Wu Guangyao; it hired talents with rich experience in global shipping to form a team. They usually work around the world, gather data, and then summarize.
Although Wu Guangyao understands the general trend, he still needs people to do the details.
"Do you think, how about we sell part of Dongying's old ships (about 30 years old)?" Wu Guangyao said.
He Yuanzhang and Gao Ke immediately said in unison: "No!"
Then He Yuanzhang motioned to Gao Ke to say first that Gao Ke, as the person in charge of Dongying, naturally has a great say!
"Boss, these ships can be used for three to five years if they go smoothly, and they can be used for retail leases or refitting container ships; if they are sold, we are equivalent to investing in rivals. The point is that these ships are not valuable, they can only use They will be valuable only when they get up. Even if these ships recycle scrap iron, they cannot flow into other shipowners on Hong Kong Island."
He Yuanzhang continued: "Yes, boss. And I guess, you want to sell your fellow Bao Yugang! But boss, don’t forget, Bao Yugang’s ship business has not stopped in the past two years. He has developed into a shipowner with a deadweight of 100,000 tons. And I found that he is very popular with employers in Dongying. I think it's probably because he likes a long-term contract with a one-year lease!"
Wu Guangyao woke up suddenly after hearing the words of the two!
I’m too naive. Bao Yugang is obviously his ‘great enemy’, and he still thinks about the feelings of his fellow countrymen. The most important thing is that he can’t have this kind of ‘enemy behavior’.
Wu Guangyao said modestly: "You two reminded me well! Indeed, Bao Yugang's identity as a banker makes him a good fish in the shipping industry. I heard that he has also obtained the LC letter of credit from Dongying Bank. It seems that he may Come from behind!"
"It's not obvious that he is coming from behind, but he is indeed a stable businessman who knows how to use the bank." He Yuanzhang said pertinently.
Wu Guangyao thought for a while, and then said: "In this case, you remember one thing, that is when Bao Yu first entered the European and American oil transportation field, our global shipping business in Europe and the United States must appropriately change the business policy. For We can combine long-term lease contracts and short-term lease contracts for our loyal major customers and old customers to get their favor! Similarly, the three-year memorandum of cooperation for Dongying old customers is about to expire, and we can also sign a part of the long-term The contract can be regarded as stabilizing them!"
Wu Guangyao also decided that the follow-up business policy should be slightly more conservative;
From the experience of later generations, a large part of the reason why Bao Yugang came from behind is that he likes to lease long-term contracts of one to three years.
In the eyes of the bank, this mode of operation is obviously not too risky, so the bank will choose the loan.
In addition to his business method, he has gained a good impression in Dongying. The government, banks, customers, and shipyards all like him and give him all kinds of convenience.
Dongying Shipyard in the late 1960s was full of orders and could only suspend receiving business; but everyone would sell Bao Yugang’s face and take Bao Yugang’s orders. This is an advantage.
There is another very important reason why Wu Guangyao changed his business strategy!
That is, global shipping is developing too fast. Although it is not in debt, the foundation (customers) also needs to be stabilized.
Wu Guangyao thought for a while and said to the two executives: “We Global Shipping has another tiered shipping price, which is set according to the age of the vessel. For example, a 30-year old ship only costs 70% of the freight; a 20-year old ship , The freight is only 80%; in this way, those customers who have conflicts with the old ship may think that the old ship is a good deal. After all, our global shipping is guaranteed by three guarantees (time guarantee, preservation, and insurance)."
"Good way!" the two said immediately.
Both believe that whoever wants to make quick money does not want to make it, but it is impossible to make it all the time;
Especially to appease the old customers. Those who do shipping know that the business is the most important, and the freight is the second.
"For the specific implementation plan, you call the management to study it in detail, I will not participate!"
"Yes, boss!"
Next, we will discuss how many 100,000-ton oil tankers and 70,000-ton cargo ships will be built this time.
The Second Middle East War (Suez Canal Crisis) dealt a huge blow to the world shipping industry. Although the canal has resumed operations, oil companies have lost confidence in its reliability. European and American oil companies have sparked fierce disputes over the safety of the Suez Canal and the expansion of oil pipelines. Obviously, both the canal and the oil pipeline are easily cut off. Then there is an alternative, which is to use a larger tanker to detour the Cape of Good Hope route in Africa. However, ship owners generally believe that large ships are expensive, fuel costs are too high, and they are not easy to build.
Japanese shipbuilding companies smelled business opportunities from it, and they quickly used practical actions to break this assertion. In February 1959, the Kure Shipyard in Japan built the world's first oil tanker of more than 100,000 tons, the Universe Apollo (Universe Apollo). The ship is 290 meters long, has a total power of 27,500 shaft horsepower, a load of 104,500 tons, and a speed of 15.5 knots.
Facts have proved that oil tankers of more than 100,000 tons not only meet safety standards, but also have cost advantages.
Usually, it takes about 16,000 tons of steel to build a 100,000-ton tanker, and 24,000 tons of steel to build two 50,000-ton tankers.
And the larger the tanker, the more crude oil that can be transported in a single ship and a single voyage, and the lower the average fuel consumption per ton.
Wu Guangyao has read "Bao Yugang Biography" and clearly remembers the 100,000-ton tanker and 200,000-ton tanker, behind which are the main tankers of global shipping.
That’s why Wu Guangyao is sure that he can't go wrong with choosing a 100,000-ton oil tanker!
Finally, everyone decided to build 12 100,000-ton tankers and 5 70,000-ton freighters.
In this way, the deadweight of the new global shipping ship reached about 5.1 million tons, which is the level of Onassis in the late 1960s.
(End of this chapter)
Chapter 290The big wheel is rolling! May 1959, Dongying, Global Shipping Division.Wu Guangyao, He Yuanzhang, and Gao Ke are discussing about ordering a new ship again.In May 1957, after Global Shipping implemented the 400 million U.S. dollar plan, the total loan amount was 120 million U.S. dollars.In two years, the net profit of Global Shipping above 2.3 million tons of deadweight was 260 million, and the monthly net profit was only less than 11 million US dollars;During the closure of Suez, the monthly profit of Global Shipping reached 40 million U.S. dollars.There are three reasons to summarize, leading to this:First: After the freight has skyrocketed, it has plummeted. In the later period, the price of European and American routes fluctuates between US$12 and US$15, and the price of Dongying routes is between US$7 and US$9;Second: Business shrinks. In the past two years, the business of Global Shipping is considered to be the most fully arranged fleet among all its peers, and it is about 80% full. The reason is because of Wu Guangyao's far-sightedness, he signed a three-year memorandum of cooperation with long-term customers in Dongying to ensure that the business will give priority to global shipping. The same is true in Europe and the United States. During the closure of Suez, Global Shipping did not take the lead in raising prices and offered a 5% discount.Third: Cost increase. After the Suez Canal was managed by Egypt, tolls soared by 35%, and various factors such as a substantial increase in the salaries of seafarers on Hong Kong Island have led to a substantial increase in costs. Of course, the salaries of seafarers in countries such as Europe, America and Dongying have also increased accordingly.In the past two years, the loan repayment was 120 million U.S. dollars. The container terminal in Sing Tao and London invested about 20 million U.S. dollars, and the balance on the account was exactly 120 million U.S. dollars."Boss, the Global Shipping Research Office recently concluded that the shipping situation in Europe and the United States has taken the lead in improving; as you said, the industries in Europe and the United States began to flourish in the 1960s, and there is a trend now. The recovery in East Asia is slower. Although the price has returned to about US$8, the business is still only 80% of the previous business. It is good that other Asian fleets can have 70% business. Long-term chartered fleets don't have to worry about this issue, they are more popular." He Yuanzhang Opened his mouth and said.Wu Guangyao nodded, this is expected; after a sharp rise, there will be a sharp fall, and then rise again. This is the law of shipping.The Global Shipping Research Office mentioned by He Yuanzhang was proposed by Wu Guangyao; it hired talents with rich experience in global shipping to form a team. They usually work around the world, gather data, and then summarize.Although Wu Guangyao understands the general trend, he still needs people to do the details."Do you think, how about we sell part of Dongying's old ships about 30 years old?" Wu Guangyao said.He Yuanzhang and Gao Ke immediately said in unison: "No!"Then He Yuanzhang motioned to Gao Ke to say first that Gao Ke, as the person in charge of Dongying, naturally has a great say!"Boss, these ships can be used for three to five years if they go smoothly, and they can be used for retail leases or refitting container ships; if they are sold, we are equivalent to investing in rivals. The point is that these ships are not valuable, they can only use They will be valuable only when they get up. Even if these ships recycle scrap iron, they cannot flow into other shipowners on Hong Kong Island."He Yuanzhang continued: "Yes, boss. And I guess, you want to sell your fellow Bao Yugang! But boss, don't forget, Bao Yugang's ship business has not stopped in the past two years. He has developed into a shipowner with a deadweight of 100,000 tons. And I found that he is very popular with employers in Dongying. I think it's probably because he likes a long-term contract with a one-year lease!"Wu Guangyao woke up suddenly after hearing the words of the two!I'm too naive. Bao Yugang is obviously his great enemy', and he still thinks about the feelings of his fellow countrymen. The most important thing is that he can't have this kind of enemy behavior'.Wu Guangyao said modestly: "You two reminded me well! Indeed, Bao Yugang's identity as a banker makes him a good fish in the shipping industry. I heard that he has also obtained the LC letter of credit from Dongying Bank. It seems that he may Come from behind!""It's not obvious that he is coming from behind, but he is indeed a stable businessman who knows how to use the bank." He Yuanzhang said pertinently.Wu Guangyao thought for a while, and then said: "In this case, you remember one thing, that is when Bao Yu first entered the European and American oil transportation field, our global shipping business in Europe and the United States must appropriately change the business policy. For We can combine long-term lease contracts and short-term lease contracts for our loyal major customers and old customers to get their favor! Similarly, the three-year memorandum of cooperation for Dongying old customers is about to expire, and we can also sign a part of the long-term The contract can be regarded as stabilizing them!"Wu Guangyao also decided that the follow-up business policy should be slightly more conservative;From the experience of later generations, a large part of the reason why Bao Yugang came from behind is that he likes to lease long-term contracts of one to three years.In the eyes of the bank, this mode of operation is obviously not too risky, so the bank will choose the loan.In addition to his business method, he has gained a good impression in Dongying. The government, banks, customers, and shipyards all like him and give him all kinds of convenience.Dongying Shipyard in the late 1960s was full of orders and could only suspend receiving business; but everyone would sell Bao Yugang's face and take Bao Yugang's orders. This is an advantage.There is another very important reason why Wu Guangyao changed his business strategy!That is, global shipping is developing too fast. Although it is not in debt, the foundation customers also needs to be stabilized.Wu Guangyao thought for a while and said to the two executives: We Global Shipping has another tiered shipping price, which is set according to the age of the vessel. For example, a 30-year old ship only costs 70% of the freight; a 20-year old ship , The freight is only 80%; in this way, those customers who have conflicts with the old ship may think that the old ship is a good deal. After all, our global shipping is guaranteed by three guarantees time guarantee, preservation, and insurance.""Good way!" the two said immediately.Both believe that whoever wants to make quick money does not want to make it, but it is impossible to make it all the time;Especially to appease the old customers. Those who do shipping know that the business is the most important, and the freight is the second."For the specific implementation plan, you call the management to study it in detail, I will not participate!""Yes, boss!"Next, we will discuss how many 100,000-ton oil tankers and 70,000-ton cargo ships will be built this time.The Second Middle East War Suez Canal Crisis dealt a huge blow to the world shipping industry. Although the canal has resumed operations, oil companies have lost confidence in its reliability. European and American oil companies have sparked fierce disputes over the safety of the Suez Canal and the expansion of oil pipelines. Obviously, both the canal and the oil pipeline are easily cut off. Then there is an alternative, which is to use a larger tanker to detour the Cape of Good Hope route in Africa. However, ship owners generally believe that large ships are expensive, fuel costs are too high, and they are not easy to build.Japanese shipbuilding companies smelled business opportunities from it, and they quickly used practical actions to break this assertion. In February 1959, the Kure Shipyard in Japan built the world's first oil tanker of more than 100,000 tons, the Universe Apollo Universe Apollo. The ship is 290 meters long, has a total power of 27,500 shaft horsepower, a load of 104,500 tons, and a speed of 15.5 knots.Facts have proved that oil tankers of more than 100,000 tons not only meet safety standards, but also have cost advantages.Usually, it takes about 16,000 tons of steel to build a 100,000-ton tanker, and 24,000 tons of steel to build two 50,000-ton tankers.And the larger the tanker, the more crude oil that can be transported in a single ship and a single voyage, and the lower the average fuel consumption per ton.Wu Guangyao has read "Bao Yugang Biography" and clearly remembers the 100,000-ton tanker and 200,000-ton tanker, behind which are the main tankers of global shipping.That's why Wu Guangyao is sure that he can't go wrong with choosing a 100,000-ton oil tanker!Finally, everyone decided to build 12 100,000-ton tankers and 5 70,000-ton freighters.In this way, the deadweight of the new global shipping ship reached about 5.1 million tons, which is the level of Onassis in the late 1960s.End of this chapter
