Chapter 798: CLH
Chapter 798: CLH
After agreeing to attend the business banquet hosted by General Manager Hu of Jiangzao General Factory, Huang Xiaochuan asked Gao Song to find the documents for Changlong Shipping (CLH) to apply for new ships for the next year and give them to him.
"Mr. Huang, here are the documents you requested." Gao Song quickly placed a rather thick document in front of Huang Xiaochuan.
Huang Xiaochuan waved his hand: "You can leave now!"
"Okay!" Takamatsu didn't forget to close the office door behind him when he left.
Huang Xiaochuan didn't rush to look at the document. Instead, he finished the tea in the Yongzheng-style imitation Chenghua doucai chicken cup in front of him before starting to look at the document.
Generally speaking, the lifespan of a giant container ship with a capacity of 18000 containers is about twenty or thirty years. However, due to technological advancements and stringent environmental regulations in various countries, the lifespan of ships is much shorter than the above-mentioned years.
Moreover, global shipping routes are divided into three categories. Category I routes have more current regulations and are strictly enforced. Therefore, most of the ships operating on Category I routes are new ships with an age of no more than twelve years, but the freight rates on this route are the highest.
Category II and Category III routes are much more lenient in terms of various regulations, but the freight rates are also much lower. Therefore, most of the ships operating on Category II and Category III routes are second-hand ships that have been phased out from Category I routes, and they can at least make a living through hard work.
That is why Chimelong Shipping orders so many new ships, because according to the rule of replacement between old and new, Chimelong Shipping's ships are generally sold through the second-hand ship market after about ten years of operation.
With the rapid development of global trade, coupled with ample capital and substantial low-interest bank loans, Chimelong Shipping's fleet size has grown year after year, and it has now joined the ranks of the world's top shipping companies.
As of December 31, 2005, Chimelong Marine owned 153 ocean-going vessels of various types, including 65 giant container ships with a loading capacity of 18000 containers, and another 22 new ships of various types that were to be completed and delivered within two years.
This giant fleet also includes supertankers with a deadweight tonnage of over 180,000 tons, bulk carriers with a deadweight tonnage of over 150,000 tons, and general cargo ships with a deadweight tonnage of over 120,000 tons, as well as other types of ocean-going vessels. These ships are currently sailing on the world's two most important trade routes: the Asia-Europe route and the Asia-US East Coast route.
Since Dadao Group owns its own oil refinery and energy company, most of Chimelong Shipping's ships refuel in Singapore, thus forming a closed-loop internal supply system that greatly saves costs.
According to the document, starting the year after next, Chimelong Shipping will gradually decommission its vessels and sell them to the second-hand market. Moreover, with the increase in trade volume each year, the fleet will also need to add new vessels.
In other words, in addition to building new ships to fill the gaps in the old ships, more ships need to be built to join the fleet operation. Therefore, according to professional calculations, Chimelong Shipping will need to order twelve new ocean-going vessels of various types every year for the next five years.
Seeing this, Huang Xiaochuan understood why the other party had sent his second brother to invite him to dinner. Their goal was to secure all these orders at once. Several billion US dollars over five years was indeed a huge amount of business.
After reviewing the documents, Huang Xiaochuan refilled the chicken cup with tea and began to drink it slowly.
Shipbuilding has a long cycle, so orders must be placed in advance. The choice of shipyard is also crucial; an inappropriate choice or missing the window of opportunity can lead to waiting in line for the slipway to become available. This further prolongs the delivery time and increases costs.
Therefore, the saying "time is money" is perfectly exemplified in the shipbuilding and shipping industries.
Overall, the shipyard where Huang Erhe works is quite powerful. Otherwise, Chimelong Shipping wouldn't have given most of its orders to this shipyard over the years. Why not do something that kills two birds with one stone? It can help large domestic shipbuilding companies expand and grow, provide a lot of jobs, and also take care of his second brother.
That evening, Huang Erhe, who had been feeling uneasy all day, went to his younger brother Huang Xiaochuan's house.
After Huang Zeji and Huang Ruiying greeted their second uncle, Huang Xiaochuan spoke up, saying, "Second brother's here! Come and sit down!"
After Huang Erhe sat down, Huang Xiaochuan asked him, "Did you come alone? Why didn't your sister-in-law come?"
After thanking the nanny who brought him tea, Huang Erhe answered his brother's question: "It's inconvenient for her to come while she's heavily pregnant, so I didn't bring her. Besides, she has to stay home and help the two children with their homework."
Huang Xiaochuan nodded.
At this point, Huang Erhe revealed his purpose: "Xiao Chuan, when I called you today, our factory manager was standing right next to me. Besides, this concerns the livelihoods of tens of thousands of employees in our factory."
Huang Xiaochuan smiled and stopped Huang Erhe, preventing him from continuing.
"I can understand what your company leaders are thinking. After all, this is how Chinese society works. If I don't agree to have this meal, your factory leaders might think that we might not be able to get these orders."
Hearing this, Huang Erhe, who had been somewhat uneasy, felt relieved. It seemed that his younger brother had decided to give these orders to the shipyard where he worked.
So Huang Erhe chimed in, "Yes! I think that's what they think."
After a brief chat about work, the two brothers started talking about family matters.
Huang Xiaochuan asked proactively, "Next year you're going to Hong Kong with your second sister-in-law to give birth, what will happen to Maowa and Miguo?"
Huang Erhe and Cheng Jing had already made arrangements for this. He said, "Your second sister-in-law's parents have already made arrangements. While we are in Hong Kong, the two of them will move to where I am now and help take care of the two children."
Upon hearing this, Huang Xiaochuan nodded. This arrangement was appropriate, and it would only take two or three months anyway.
At this point, Huang Erhe brought up something: "Our dad will be seventy by Chinese New Year, right?"
"Yes! I've already talked to Mom and Dad. The three of us brothers will throw a birthday banquet for Dad during the Chinese New Year to make it more festive."
Huang Erhe discussed with his younger brother, "How about this? Let me handle Dad's seventy-year-old birthday celebration! You know, Dad has worried a lot about me. I didn't do well in the past and made him sad, so I feel indebted to him. This is a good opportunity to make up for it."
Huang Xiaochuan looked at Huang Erhe, considered it for a moment, and then nodded in agreement with Huang Erhe's idea.
However, he also offered a reasonable suggestion: "I have no objection, but you should still talk to your parents about this first and discuss it. You can also tell me if you need anything later."
"Okay! I'll talk to Mom and Dad about it tomorrow. If there's anything I can do to help, I'll definitely let you know." Huang Erhe was very happy to see that his younger brother had agreed to his idea.
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