YOU & MEPublisher : Bronson C.C. Hsieh

Editor-in-Chief : Alice HoManaging Editor : Rita ChangExecutive Editor : Laney Shih

English Consultants : Shih-chi Chen

2018.04136

陽 明 月 刊

Yang Ming Marine Transport Corporation (Yang Ming) held its 329th Board Meeting on 26th March to approve its 2017 annual financial report.

The consolidated revenues of 2017 totaled NTD 131.08 billion (USD 4.4 billion), up 13.59% compared with NTD 115.4 billion (USD 3.88 billion) in revenue from previous year. The company’s net profit, after tax, was NTD 0.32 billion (USD 10.78 million), EPS NTD 0.17. Volumes in 2017 also increased to 4,722 thousand TEUs, up 9 % year over year. Moving into the black, Yang Ming’s annual revenue and profit for 2017 saw significant improvement.

Coupled with a recovering shipping market, the effort and dedication from team members worldwide helped Yang Ming’s move in the right direction and take the first step to success. In addition to strengthening its operating strategies such as management centralization, Yang Ming has over the past year deployed strategies to optimize cargo structure, integrate information technology

systems, and continuously train staff to improve knowledge and expertise. Yang Ming will continue to explore and develop new markets, optimize its fleet deployment, and take advantage of opportunities to minimize its operating costs and improve profitability, with the goal to provide customers with convenient and excellent delivery services.

According to the latest report by the Organization for Economic Co-operation and Development (OECD), an organization established to promote policies to improve the economic and social well-being of people worldwide, the global economy is expected to grow by 3.9 percent in both 2018 and 2019, stronger than 3.7 percent in 2017. Driven the optimistic forecast, Yang Ming will continually optimize its internal management and take advantage of THE Alliance’s wide-ranging network to provide customers with a more sophisticated global shipping service.

Group Insight

Yang Ming Returns to Profitability in 2017

Yang Ming Marine Transport Corporation has set up the new regional center in Mediterranean area named YANG MING (MEDITERRANEAN) MARINE SERVICES SINGLE-MEMBER LIMITED LIABILITY COMPANY. The new company started to provide services on 2nd April 2018 in Piraeus, Greece, and Mr. Ted Wu (the third right) has officially been appointed as Managing Director for the first term.

In l igh t o f the impress ive economic g rowth in the Mediterranean region, Yang Ming sets up its owned company to serve as the regional center which will strengthen its presence and connect closer to Mediterranean, Black Sea and North Africa areas. With the establishment of YANG MING (MEDITERRANEAN) MARINE SERVICES SINGLE-MEMBER LIMITED LIABILITY COMPANY and THE Alliance’s Mediterranean service network containing Asia-Mediterranean services as well as North Europe-East Mediterranean shuttle express, Yang Ming will have greater visibility in the area to expand its business market and optimize operating costs to serve clients worldwide with a more comprehensive and intensive logistics network. The Mediterranean-based unit will operate in line with Yang Ming’s long-term strategies to reinforce

Yang Ming Sets Up Regional Center in the Mediterranean

its port and logistics networks and strengthen the operations of import/export/transship cargo services worldwide.

For business contacts, please refer to the following information:YANG MING (MEDITERRANEAN) MARINE SERVICES SINGLE-MEMBER LIMITED LIABILITY COMPANY2nd floor, No 1-3, Filellinon, Piraeus, GreeceTEL: +30-210-3002190

Note: 1. Blue - upward amendment compared with last projection 2. Red - downward amendment compared with last projection 3. The figures of supply contain containerships, excluding Multi-Purpose, Ro-Ro and other liners.Source: Clarkson, Container Intelligence Monthly, March 2018

2015 2016 2017 2018 2019

Demand 2.1%(±0.0) 4.2%(±0.0) 5.5%(+0.1) 5.0%(±0.0) 4.8%(±0.0)

Supply 8.0%(±0.0) 1.2%(±0.0) 3.8%(±0.0) 4.4%(+0.1) 2.5%(+0.2)

Balance -5.9%(±0.0) 3.0%(±0.0) 1.7%(+0.1) 0.6%(-0.1) 2.3%(-0.2)

Global seaborne box trade is expected to expand by 5.0% in 2018, against a backdrop of improving global economic conditions, and following growth of 5.5% in 2017. Supported in part by improvements to economic conditions in Latin America and the Indian Sub-Continent, trade growth in 2018 is expected to continue to be bolstered by robust expansion on North-South, intra-Asian and non-mainlane East-West trades, despite some potential easing on mainlane routes. In 2019, container trade growth is expected to moderate slightly, although remain firm at 4.8%.Deliveries into the boxship fleet were subdued in February, totalling five boxships, and are projected to continue at a relatively moderate rate in the full year, although the orderbook remains dominated by the largest vessel sizes. The pace of boxship demolition has been relatively muted this year so far, although is

expected pick up speed during the remainder of the year. Overall, boxship fleet growth is expected to remain manageable in 2018, at 4.4%, before moderating to 2.5% in 2019.Spot freight rates across the mainlane trades out of Asia continued to gradually increase in February, following some easing towards the end of 2017. However, the freight market remains volatile and subject to both positive and negative pressures.Improvements to boxship timecharter rates were seen across most vessel sizes in February 2018, following the significant gains seen across the sector during 2017. While risks remain on the demand side, containership supply growth is projected to remain controlled in 2018 and 2019. Further improvements to containership sector market conditions are expected in the coming years, as sector fundamentals continue to rebalance.(Quoted from Clarkson, Container Intelligence Monthly, March 2018)

I. Industry Update:A. Overall Demand/Supply Forecast

Amy Tou, SPSA, YMHQ

Industry Updates

Service Update

Yang Ming Marine Transport Corp. (YM) deploys two bigger container ships of 2,800TEU in its Southeast Asia Service (SEA service) effective from 20th April 2018 to provide customers with better service. The calling port rotation is Port Kelang – Singapore – Jakarta – Surabaya – Panjang – Jakarta – Port Kelang with a round voyage of 14 days.

In addition to SEA service, YM also provides CTI (China-To-Indonesia) and THI (Taiwan-Hong Kong-Indonesia) services

covering China, Taiwan, Hong Kong, and Shekou to Jakarta, Surabaya and Semarang. With said services, YM will not only strengthen Indonesia service network but also provide customers with more convenient and excellent delivery service. Further information about the service network is available at Yang Ming website (www.yangming.com). Please contact Yang Ming local offices for more details.

Yang Ming Upgrades Southeast Asia Service

✽�Containership scrapping activity has slowed dramatically from the frenetic pace of 2016 and early 2017, with only twelve ships for 21,778 teu sold for recycling so far this year. Alphaliner has adjusted its full-year scrapping estimates for 2018 to only 200,000 teu and this number could be revised downwards further if the currently slow pace of ship-breaking does not pick up in the coming months.✽�The projected vessel capacity to be scrapped this year, somewhere in the 100,000 to 200,000 teu bracket, follows the 413,982 teu of

container tonnage recycled last year, and the record of 654,862 teu broken up in the year 2016. A further reduction in the rate of vessel scrapping could therefore make this year’s container ship-breaking volume the lowest on record since 2011.✽�Carriers’ With more than 1.00 Mteu of new container ship capacity still due for delivery between April and December this year, the

reduced rate of scrapping has pushed full-year capacity growth estimates up to 6.0%. The total cellular vessel fleet is thus expected to reach 22.37 Mteu by the end of the year, compared to 21.10 Mteu at the beginning of 2018.✽�While the overall idle containership capacity has been reduced significantly from a record high of 1.60 Mteu in October 2016 to 340,000

teu as of today, the overall market remains delicate with any slackening in demand threatening to disrupt the fragile recovery in the containership charter markets, even as freight rates have started to tumble under the pressure of excess supply.

B. Trade Analysis and Statistics■Lower scrap rate brings up full-year supply growth estimates

Source: Alphaliner Newsletter no 16, 2018

■East-West Trade Capacity Deployment (Last 12 months)

Source: Alphaliner Monthly Monitor April, 2018

Source: Alphaliner Monthly Monitor April, 2018

■�The idle containership fleet of over 500 teu has fallen to 96 units for 427,865 teu as at 2 April, with demand for tonnage surging ahead of the busy summer season. The idle fleet now stands at 2.0% of the total cellular fleet, compared to 2.9% (626,996 teu) just a fortnight earlier.

II. World Economy：■Composite leading indicators continue to point to stable growth momentum in the OECD area

■�The Euro zone manufacturing PMI eased to a five-month low of 56.6 in March. The U.S. manufacturing expanded in March as the PMI registered 59.3 percent, a decrease of 1.5 percentage points from the February reading, indicating growth for the 19th consecutive month. China’s PMI came in at 51.5 percent with an increase of 1.2 percentage points in March.

Source: Institute for Supply Management (ISM); Markit Economics; China Federation of Logistics & Purchasing (CFLP)

Personnel Updates姓名 Name Original Position New Position Effective Date張見陸 Gerry Chang Vice President ARDP YM HQ Yang Ming Shipping Europe GmbH 2018/3/23

史美琦 Michael ShihChief Administrative Officer/ Senior Vice

President

YM HQ Chief Administrative Officer/ Senior Vice

PresidentYM HQ 2018/4/1

Leader of AHDP YM HQ

張勝凉 Simon Chang Senior Vice President TKHB YM HQ Chief Officer Northern China 2018/4/1

朱介立 Jerry Chu Yang Ming Shipping Europe GmbH Senior Vice President TKHB YM HQ 2018/4/1

邱增玉 Caroline Chiu Vice President LQDP YM HQ Vice President AHDP YM HQ 2018/4/1

許坤琪 Neil Hsu HQ/Deputy Vice PresidentHONG MING TERMINAL & STEVEDORING CORP./

PresidentHQ/Vice President

HONG MING TERMINAL & STEVEDORING CORP./

President2018/4/1

王勝賢 Stephen Wang Deputy Vice President

CMDP YM HQVice President CMDP YM HQ 2018/4/1

Leader of CMDP YM HQ

楊順進 Peter Yang Deputy Vice PresidentASDP YM HQ

Vice President ASDP YM HQ 2018/4/1Leader of ASDP YM HQ

李寶琳 Polin Lee Deputy Vice President CMDP YM HQ Vice President LQDP YM HQ 2018/4/1

章哲思 Jesse Chang Deputy Vice PresidentITDP YM HQ

Deputy Vice President ITDP YM HQ 2018/4/1Leader of ITAS YM HQ

張馨文 Judy Chang Deputy Vice President SPDP YM HQ Deputy Vice PresidentSIDP YM HQ

2018/4/1Leader of SIAD YM HQ

王啟仲 Andrew Wang Deputy Vice President CTDP YM HQ Deputy Vice President TTDP YM HQ 2018/4/1

葉文忠 Winston Yeh Yang Ming (America) Corp. (HOU) Deputy Vice President CTDP YM HQ 2018/4/1

江嘉文 Ivan Chiang Deputy Vice President SIDP YM HQ Deputy Vice President CMDP YM HQ 2018/4/1

張寬宏 Hayden Chang Deputy Vice President LQDP YM HQ YANG MING (MEDITERRANEAN) LTD. 2018/4/1

張鳳池 Frank Chang Senior Specialist SIGD YM HQ Senior Specialist TKLB YM HQ 2018/4/1

陳彥邦 Ted Chen Assistant Vice President SPEA YM HQ Acting Deputy Vice President

SPDP YM HQ2018/4/1

Leader of SPEA YM HQ

劉昆松 Filip Liu Senior Manager TTHC YM HQ Assistant Vice President TTHC YM HQ 2018/4/1

黃國俊 Sam Huang LogiTrans Technology Pty. Ltd. Senior Manager ITAS YM HQ 2018/4/1

吳佳茹 Catheline Wu Acting Senior Manager ICCS YM HQ Senior Manager ICCS YM HQ 2018/4/1

洪偉哲 Stanley Hung CBDP YM HQ YANG MING SHIPPING (VIETNAM) CO., LTD 2018/4/1

周貞寧 Jenny Chou CEDP YM HQ YANG MING (MEDITERRANEAN) LTD. 2018/4/1

陳育馳 Jack Chen CRDP YM HQ YANG MING (MEDITERRANEAN) LTD. 2018/4/1

鐘珮紜 Christine Chung LODP YM HQ YANG MING (MEDITERRANEAN) LTD. 2018/4/1

黃宥騰 Andrew Huang TTDP YM HQ TKHB YM HQ 2018/4/1

李泰興 Timmy Lee TKHB YM HQ TTDP YM HQ 2018/4/1

解玉珍 Ellen Chieh Assistant Vice President SLPM YM HQ Parental Leave 2018/4/13

呂純杰 C. C. Lu Deputy Vice President ICDP YM HQ Deputy Vice PresidentICDP YM HQ

2018/4/16Leader of ICBS YM HQ

曾淑蓉 Venisa Tseng Senior Manager ICBS YM HQ Senior Manager SLPM YM HQ 2018/4/16

楊忠華 Albert Yang Senior Manager ITCA YM HQ Young-Carrier Co., Ltd. (Shanghai) 2018/4/16

張維斌 Wayne Chang Young-Carrier Co., Ltd. (Lianyungang) SIDP YM HQ 2018/4/16

張榮宏 Vincent Chang YANG MING SHIPPING (VIETNAM) CO., LTD HONG MING TERMINAL & STEVEDORING CORP. 2018/4/16

Event Witness

2018 Keelung Fairy Tales Festival Reaches a New High

The 2018 Keelung Fairy Tales Festival planned by Yang Ming Cultural Foundation and supported by Keelung City Government was successfully completed on the 8th of this month. Yang Ming Marine Transport Corp. specially invited 54 business alliances this year to join Keelung City Government in organizing the festival activities, which has brought over 310,000 people to Keelung and created great family times during the holidays.

Yang Ming has been committed to public welfare education for a long time, and established the Yang Ming Cultural Foundation in 2005 to organize various arts and cultural activities to fulfill Yang Ming’s social responsibility. The Keelung Fairy Tales Festival has been expanded in scale year by year under the sponsorship of Yang Ming for more than a decade. This year, with the large-scale installation art from the

Paperwindmill Theatre, the activity has transformed Keelung harbor c i ty’s image through stunning visual effects, created a new atmosphere and new spot for the local people, and successfully stimulated loca l pa r t i c ipa t ion in cultural art activities. The activities have stimulated local economy by attracting

people from other cities to Keelung for sightseeing.

This year, through the “Color Keelung -- Environmental Public Art Project,” Yang Ming Cultural Foundation invited Keelung's local artist, Chi Hung, Lee and more than 300 people to do cloth dyeing and display their products around the port of Keelung, enriching the tone and art of the port.

When the exhibit ion is over at the end of April, Keelung citizens will be invited once again to participate in a sewing activity to make cup bags, which will be given to the public at the beverage stores in Keelung city in hopes the beauty of art will continue to spread in the harbor

city. The vital part of this event is the recycle spirit extended from artworks to daily necessities, with the goal of zero resource depletion to enhance the spirit of Color Keelung in line with the Yang Ming concept of cherishing and recycling environmental resources.

The 2018 Keelung Fairy Tales Festival has ended successfully. Yang Ming and its affiliated cultural foundation will continue to promote public welfare education through practical actions, whether it is the operation of the corporation or the fulfillment of its social responsibilities; all are Yang Ming’s unshirkable commitment.

Painting Works NO 04. Theme: The Windy DayAward: Gold Medal

Name: Kul'backaya DaryaCountry:UkraineAge: 7Comments:The black and white lines depict a prosperous seaport. The design is lovely. The buildings, water and fishing boat were drawn using a variety of black and white dots and lines. The composition is also natural and shows the artist's diligence. This is a rare, wonderful work.

6th Yang Ming International Adolescents Painting Competition Winning Entries