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Published at 25th of December 2023 05:16:15 AM


Chapter 348: [Dig the corner of the old bag]

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Chapter 348 【Digging the corner of the old bag】

In April, Dongying, Mitsubishi Heavy Industries.

Ichiro Aikawa, the person in charge of Mitsubishi Heavy Industries, can’t wait to confess Wu Guangyao at this time;

It's been a little more than a year since the God of Wealth came to Mitsubishi Heavy Industries.

"Mr. Aikawa, don't be too happy! Have I told you three years ago? I need a larger tanker in the future."

Ichiro Aikawa nodded quickly, and then continued happily: “I know, since you mentioned it, we at Mitsubishi Heavy Industries have been developing 200,000-ton oil tankers. At present, the technology is mature and we can fully accept your order!”

Wu Guangyao immediately became happy after hearing what Ichiro Aikawa said;

Aikawa Ichiro never dared to make a joke or lie about this. If there is an accident, it is not only the contract sanctions Mitsubishi Heavy Industries;

The most important thing is reputational scandal. This is the biggest loss.

Wu Guangyao is anxious to order 200,000 tons, and there is a reason.

After the Second Middle East War (Suez Canal Crisis), some Chinese and Western shipowners discovered that the larger the ship, the lower the relative operating cost.

So, many shipowners competed to order large and even super large tankers, so the deadweight was 100,000 tons at the end of the 1950s.

According to history, it developed to 200,000 dwt in the mid-1960s, 300,000 dwt in the late 1960s, and more than 400,000 dwt in the 1970s.

While Wu Guangyao couldn't wait so long, so he simply proposed to Mitsubishi Heavy Industries for his 200,000-ton tanker demand in the late 1950s.

I came to Dongying this time with a hope that if all the 200,000-ton oil tankers could be replaced earlier, I would save a lot of trouble.

The larger the deadweight, the fewer ships required for global shipping, which naturally facilitates management and reduces management costs.

Once operating costs and management costs are reduced, I can naturally earn more dollars during the eight-year ‘Suez Canal closure’ period.

"Ten 200,000-ton oil tankers!" Wu Guangyao said lightly, as if talking about something ordinary!

"What? Ten ships?" Aikawa Ichiro's tongue was almost knotted, the news was really shocking.

After more than a year, Aikawa Ichiro thought that Wu Guangyao would order a load of hundreds of thousands of tons at most, but he didn't expect to have a load of 2 million tons when he opened his mouth.

"Is there a problem?" Wu Guangyao frowned, haven't he seen the world!

I really don’t blame Aikawa Ichiro’s shock. He probably knows the strength of Global Shipping. If he connects to the old ship and the 2 million tons of deadweight ordered this time, then the medium-load capacity of Global Shipping is close to 10 million tons. NS.

"There is one thing. It may take two and a half years to complete the construction of so many large oil tankers! After all, the oil tanker in front of you is still under construction." Aikawa Ichiro was very painful at this time, suffering for Mitsubishi Heavy Industries' production capacity, and seemed to have to prepare a new dock. NS.

If this major customer chooses European and American shipyards due to time issues, Mitsubishi Heavy Industries will suffer a great loss.

"Global shipping can wait, as long as you can guarantee the quality!"

"Of course, we will not take the reputation of the entire Dongying shipbuilding industry as a trifling matter!"

Next is the price issue. Wu Guangyao ordered ten 200,000-ton tankers this time, which he thought would be up to US$290 million;

I don’t know that Dongying’s labor costs have increased recently. This part of the money can only be added to the buyer, which makes Wu Guangyao depressed.

At the end of 1960, Prime Minister Ikeda, who was deeply influenced by Keynesianism, announced the launch of the 10-year National Income Doubling Plan.

Prime Minister Ikeda believes that Dongying’s economic growth rate will soon stabilize at an average annual growth rate of about 7%.

However, under the circumstances of the trade payment balance and production capacity restrictions at the time, many people, including many famous economists, opposed the 7% economic growth target set by the Dongying government, believing that it might increase inflationary pressure; Ordinary Dongying people didn't believe this plan at first. They believe that although on the surface it is possible to double people’s income, inflation will offset the nominal income growth. To the surprise of the Dongying people, this plan exceeded expectations and doubled the income of Dongying people in just 7 years (1960-1967), which was 3 years shorter than the time expected when the plan was formulated.

An important cost in the shipbuilding industry is labor costs. Therefore, affected by this aspect, the cost of building ships will inevitably rise.

However, compared with the cost of shipbuilding in Europe and the United States, Dongying shipbuilding still has great advantages.

Dongying’s shipbuilding industry has two advantages:

First, the technology is the same as that of Europe and America, but the cost of shipbuilding is only 80% of that of the United States and 90% of that of Europe.

Secondly, for the new ships purchased at Dongying, Dongying manufacturers promised that if the ship has an accident anywhere in the world, they will rush to repair it as soon as possible.

Because of these two advantages, by the end of the 1960s, Dongying’s shipyards were full of orders (also affected by the closure of the Suez Canal), and the acceptance of orders was suspended.

When discussing the price, Wu Guangyao and Aikawa Ichiro came and went with you. In the end, because Wu Guangyao is a super regular customer, Aikawa Ichiro also charged an extra 5 million US dollars, totaling 295 million US dollars.

Business negotiations are complete, Aikawa Ichiro specially prepared a reception for Wu Guangyao.

This kind of cocktail party is very pure, it is to tie the line for Wu Guangyao, and find some company leaders who need oil tankers to attend.

These transportation companies or oil companies in Dongying are very fond of leasing ships on Hong Kong Island rather than buying ships;

The reason for this situation is because of the cost and the difficulty for the Japanese to raise foreign exchange.

There were two heavyweight companies that night, which attracted Wu Guangyao’s attention;

Why are they two important companies? Because Wu Guangyao remembers these two companies. They were the two major customers of Bao Yugang in the 1970s-Dongying Steamship Company and Yamaguchi Gas Shipping Company.

And Wu Guangyao remembers that Dongying Shipping Company seemed to go bankrupt in the late 1970s, causing Bao Yugang to lose tens of millions of dollars in rent.

Over the years, Global Shipping has shifted its focus to Europe and the United States, because the prices there are more profitable;

So in the market of Toyo, we have always seized the old customers and some retail investors such as Showa Energy, Mitsui Shipbuilding, etc.;

Therefore, there is no cooperation with Dongying Steamship Company and Yamaguchi Gas Ship Company.

However, the 12 100,000-ton oil tankers ordered in early 1961 will be launched one after another in the second half of this year, so we also need to find new customers.

The people of Dongying are really smart. Both Dongying Shipping Company and Yamaguchi Gas Shipping Company have expressed their interest in chartering vessels for global shipping, but they hope to carry out long-term leases.

The price of long-term lease is cheap. European and American shipowners generally don’t lease like this. They charge on a per trip basis.

Only shipowners on Hong Kong Island like long-term charters, especially Bao Yugang;

The price of Hong Kong Island itself has an advantage, coupled with the cheap long-term rental, the later generation Bao Yugang will naturally become the king of the ship.

Looking at the two shrewd Japanese, Wu Guangyao also began to calculate.

In this life, because of Wu Guangyao's appearance, other shipowners in Greece, Dongying, and Hong Kong Island have been greatly hit;

Wu Guangyao’s ships have increased, so these people’s ships will be fewer than in history.

So Wu Guangyao is not afraid that he cannot compete with these people. Compared with the shipowners in Greece and Dongying, Wu Guangyao has a price advantage;

Compared with Dong Yunhao, Bao Yugang, Zhao Congxian and others, Wu Guangyao has the advantage of capital and first entry.

For example, at today’s cocktail party, if Wu Guangyao does some good work, he can both approve of these two companies, and he can also suppress Bao Yugang.

"Long-term leases can be considered. If your two companies can afford these 12 100,000-ton tankers, then Global Shipping is willing to sign a five-year long-term contract for you." Wu Guangyao quickly replied.

Wu Guangyao thought very well. At this time, there are still five years before the Third Middle East War. He signed a five-year long-term lease with these people;

Once the contract expires, the outside freight has skyrocketed for about two or three months, and even a fool will have to sign a pay-per-trip contract for you.

Because they have leased 1.2 million tons of oil tankers to these two companies for five years, then these two companies will not consider other Hong Kong Island shipowners in these five years.

So, there are opportunities for Bao Yugang and Dong Yunhao to develop rapidly!

Without an order, the bank will not give you a loan. The reason is very simple.

Wait five years later, as soon as the Suez Canal is closed, and it is still eight years, in that kind of market, even Bao Yugang will not sign a low-cost long-term contract.

It can be said that Wu Guangyao's operation is a strategy of killing two birds with one stone!

Before 1967, signing long-term contracts with customers in Europe, America, and Dongying could combat the development of shipowners in Greece, Dongying, and Hong Kong;

As soon as the market situation comes, Global Shipping has the most ships in hand. At that time, these customers who just needed it should not try to please!

The persons in charge of the two families heard that Wu Guangyao was so decisive. With the transportation capacity of the two companies, 600,000 tons of oil tankers each could not be leased; but this Chinese businessman is a savvy businessman, why is it so easy to talk suddenly?

Looking at the two of them being silent, Wu Guangyao decided to add fire, and said: “Dongying has an annual economic growth of 7%. Do the two still think that this growing economy does not need oil?”

"Haha, Mr. Wu misunderstood, we are naturally optimistic about the oil market. Well, because this order is too large, we need to discuss with the board of directors. But please rest assured, Mr. Wu, we are absolutely assured of the reputation of Global Shipping, and we will give priority. Consider global shipping."

Wu Guangyao was not disappointed after hearing this. There is still great hope for the success of these two businesses, but Dongying people have always been shrewd.

However, the shrewd Dongying people have seen them all by themselves, and they are not obediently following their own ideas.

Wu Guangyao's guess was good. One week later, Global Shipping received the deposit from the two companies, and the new ship directly signed a five-year contract with the two companies.

The first ship will be launched in July, and the last ship will be launched at the end of the year;

Calculated in this way, after the contract period of the first ship expires, it just happens to catch up with the good market;

The last ship may lose five months of high freight, but it doesn’t matter, this is just the explanation!

(End of this chapter)




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