SIMIC

TAIWAN shipping major Wan Hai is turning to the logistics field to secure greater profitability in an increasingly challenging freight market, said company chairman Chen Po-ting, reports London's Loadstar.

"When the shipping business isn't good, we'll seek opportunities to move into air freight and land transport. Wan Hai has made profits by investing in terminals in Vietnam, India and other places," said Mr Chen.



He said Russia's invasion of Ukraine had affected economies in Europe and the US, exacerbating inflation and high interest rates, and added that China's post-Covid recovery was not as good as expected.



"We're optimistic about the rise of India, Indonesia, Thailand and other ASEAN markets, and will seek business opportunities there," he said.



"Wan Hai has continued to purchase ships, containers and terminals. These represent our future plans and we aren't pessimistic about the future. That said, the geopolitical and economic situation has made us conservative about this year, and we think the container shipping market won't be too good."



It all represents a u-turn from last year, when Wan Hai's management said it would not follow larger operators like MSC, Maersk and CMA CGM in acquiring logistics companies.



Said Drewry maritime research chief Simon Heaney: "Container shipping and logistics have very different operational and commercial imperatives. Past attempts to expand the scope of liner operators failed to meet expectations, but things might work out better this time around."