Lin Zhichao and Feng Yongfa met and came to the London headquarters of Clark Oil Company, where they met Weilong, the international chartering department, again.
It can be seen that Weilong has been very busy recently due to the shortage of oil tankers.
When he saw Lin Zhichao coming in person, the joy on his face flashed away.
At the same time, Weilong seemed to have forgotten the unpleasantness last time, and extended his hand enthusiastically and said: "Mr. Lin, Manager Feng, welcome to Sangke Petroleum. I think you two will return home with a full load today."
At this time, it has been more than ten days since the blockade of the Suez Canal. Merchant ships around the world are either waiting for high prices at ports or turning around at the entrance of the Suez Canal. Shipping capacity is in chaos.
However, it is very chaotic, and the entire shipping system is a mess.
"I saw Mr. Weilong's enthusiasm and hope that everyone can reach a cooperation agreement today. To be honest, I was very sorry that cooperation was not reached last time. Fortunately, we are sitting together again so soon."
Weilong's embarrassment disappeared in a flash, but he didn't care so much at this time!
"Sure, please come this way!"
Afterwards, the two sides sat in the conference room and formally entered into negotiations.
Weilong couldn't wait to ask: "Mr. Lin, how many oil tankers do you have available for lease?"
This is so crucial to him!
If it were a boat, he might be a little disappointed that it couldn't quench his thirst at all.
However, he also exposed his negotiating confidence, and even his subordinates were a little stunned.
Lin Zhichao said: "I wonder how much shipping capacity the Clark Oil Company needs?"
The wind is light and the clouds are light, it is clear at a glance which one is higher and which one is lower.
Weilong no longer cared about that and said directly: "The more, the better!"
At this point in the negotiations, Global Shipping has completely taken the initiative.
Lin Zhichao said: "We have three 56,000-ton oil tankers that have sailed into the Gulf of Aden port and can take on shipping capacity at any time."
Many ships have been parked at the Gulf of Aden port, some waiting for transportation tasks, and some waiting for buyers to purchase.
Weilong was overjoyed, and then said: "That's great, we need to rent them, Mr. Lin, please come up with a cooperation plan!"
At this time, international shipping costs have skyrocketed by about four times, and there is still potential to rise. Of course, this can only be used as a reference.
Only goods on fixed-route cargo ships are charged according to the weight of the goods. For example, Global Shipping Taxi ships are charged according to the whole ship, how much per trip.
Later, Lin Zhichao said: "It will be very cost-effective for you to rent our large oil tanker. So I first propose the best plan: a new ship of 56,000 tons, leased to you for three years, with an annual rent of 700 Thousands of dollars.”
When the plan was announced, Weilong said instinctively: "Why do we have to rent it at such a high price for three years? Can Suez be blocked for three years?"
He did not talk about the problem of shipbuilding. After all, even if it takes three years to build a ship, it will not alleviate the role of the Suez Canal.
Lin Zhichao said: "If the current one-way short-term rental cooperation method costs 2.5 million US dollars per trip, you will probably need to spend more than 12 million US dollars in a year. No matter how long the high freight lasts, it is not cost-effective for you."
Nowadays, oil tankers are scrambling for money. A new 20,000-ton oil tanker costs more than one million U.S. dollars per trip; the 56,000-ton oil tanker in his hands is the most economical way to lease. Nearly three times the transport capacity at twice the price.
Importantly, the boats are new.
Next, there is the drama of negotiation, where both parties convince each other and settle accounts with each other.
Of course, Global Shipping has advantages in all aspects. First, the ships are large and new. Second, the quotations are lower than those of European and American shipowners.
Finally, within two hours, the two parties reached a lease agreement - three new oil tankers, each worth US$6.8 million a year, with a three-year lease term.
Once the contract is signed, transportation can be arranged immediately.
With an annual rent of RMB 6.8 million, based on Global Shipping’s low-cost operating expenses, we can earn approximately US$4.5 to US$5 million, which is exactly enough to earn back two new ships in three years.
And no matter what, it is much more cost-effective for Angler Oil Company to lease their ships than leasing those small ships of 20,000 to 30,000 tons.
Three days later.
Lin Zhichao came to the headquarters of Exxon Petroleum Company in New York again. Currently, Exxon Petroleum Company leases a total of seven ships for global shipping, including three new ships of 56,000 tons and four second-hand ships of 15,000 to 16,000 tons. Boat.
Of course, ships with tens of thousands of tons can pass through the Cape of Good Hope, but they are less resistant to bad weather, but as long as they sail carefully, there will be no problem. Otherwise, a large number of merchant ships around the world will be 'scrapped'.
Niu Deng also warmly welcomed Lin Zhichao's arrival. The two companies have always cooperated happily and established a good cooperative relationship from the first time. Over the past two years, Global Shipping has successfully completed its transportation tasks and saved Exxon Oil a lot of money.
Nowadays, Exxon Oil Company will firmly grasp the seven ships of Global Shipping, and has made many proposals to sign long-term contracts.
However, now that shipping costs have skyrocketed, Niu Dengdu lamented that Lin Zhichao was so lucky!
"Mr. Lin, I heard that you have completed the contract with Jiangxi Petroleum Company. Congratulations!" Niu Den said friendly.
"Thank you Mr. Niu Deng for your initial introduction, otherwise it would be difficult for us to break into other oil companies." Lin Zhichao said.
Introduction is certainly useful, but it is not absolute.
But Lin Zhichao is also building a relationship between the two parties, so there is no problem in bragging.
After some polite remarks, everyone sat in the conference room.
After talking for a while, Lin Zhichao proposed the same cooperation conditions, that is, the new ship would be signed for three years and the annual rent would be US$7 million.
As for the four second-hand ships, Lin Zhichao’s plan was: a three-year lease term, with an annual rent of US$1.8 million for each ship, or US$7.2 million for four ships.
The rental of four second-hand boats is definitely very cheap!
For a Greek ship owner, the price of a ship would be at least US$3 million per year, and of course it must be calculated as a one-way short-term rental.
After thinking for a while, Niu Den said, "Does it have to be a long-term lease?"
Lin Zhichao immediately said easily: "One-way short-term rental is also acceptable! However, I can only give you a 10% discount based on the market price for freight. If I calculate this, it will cost you approximately US$12 million to lease a 56,000-ton new ship per year. In fact, all I need is that our ship can keep running during these three years. In the end, it is still a good deal for you. Moreover, after three years, I can rent it to you for more than three years at the current price. From now on, We can all cooperate with you on long-term leases, and you can save a lot of costs.”
The next wave of market trends was the closure of the Suez Canal in June 1967, which lasted eight years. By then, Lin Zhichao does not need to pursue perfect timing, and it does not matter if some ships are delayed for half a year.
What's more, after the new ship is launched, the lease period is all decided by him;
In addition, Lin Zhichao can control the best time when the new ship is built and when it is launched.
For example, 1959 to 1961 was a short shipping winter, so Lin Zhichao could build a large number of ships (made in Japan) at that time, and the prices were much cheaper; after the new ships were launched in 1962, they were rented out for five or six years, just in time; if it was 1960 When the water is launched in the year, the lease will be three years first and then renewed for another four to five years.
Moreover, when the fleet becomes large, it is not necessary for all of them to catch up with good prices. It is only necessary for most of them to catch up with good market conditions. You can also confuse partners.
After some communication with his colleagues, Niuden said: "This three-year lease is an element of gambling. Will the Suez Canal be opened soon? If it is opened soon, wouldn't we suffer a lot?"
Lin Zhichao said: "This is inherently gambling. If one-way short-term rental is adopted, after one year of rent, if the market is still there, Mr. Niu Deng will regret it. To be honest, because we have a good cooperative relationship, a lot of oil The company wanted to rent our ships, but I didn’t even consider it. Four small second-hand oil tankers are almost a huge discount, I believe you can see it!"
Indeed, a 15,000-ton second-hand oil tanker was originally purchased for US$1.2 million, but now it is rented to others for more than US$2 million a year, and everyone is rushing to lease it.
Niuden said: "There is indeed no problem with the rental of second-hand ships! The three new ships need to be cheaper. We are all old friends."
He plays the emotional card!
Lin Zhichao was not tough, and Niu Deng was still very good. So in the end, the 56,000-ton oil tanker only cost 6.6 million US dollars a year, and the rent for one was 200,000 US dollars a year cheaper than that of Clairvoyance.
Everyone was happy, and Niuden and other people from Exxon Oil Company all felt that it was a "very satisfactory negotiation"!
At the end of August, Lin Zhichao returned to Hong Kong.
This overseas trip took a full 20 days, and he completed a "three-year long-term lease" with six companies, namely: Europe's Clark Oil, the United States' Exxon Oil and Texaco Oil, Japan's Yamaguchi steamship, Nippon steamship, Sanko steamship.
All 14 oil tankers have completed long-term lease contracts (580,000 tons deadweight), and the profit will be more than 45 million US dollars per year in the next three years.
Among the 68 cargo ships (with a load capacity of 700,000 tons), 45 have completed three-year leases, and the average annual rent in the next three years can be maintained at a level of US$40 million.
In other words, global shipping can earn more than 85 million US dollars per year in the next three years, becoming the biggest winner of the 'Suez Canal Crisis'.
A full US$260 million, and possibly even more (operating costs are not certain), these funds will become the core funds for Global Shipping to build new ships from 1959 to 1961.
In his previous life, when Bao Yugang was in 1968, his fleet reached a deadweight of 3.5 million tons and a total value of US$300 million.
Now, Lin Zhichao can achieve it nearly ten years in advance. Of course, he also entered this industry for five years first.
The important thing is that Lin Zhichao will definitely choose to borrow money to build ships. In the early 1960s, his fleet may have a market value of more than 500 million US dollars.
World Shipping's conference room.
Lin Zhichao looked at the group of management who had been beaten to death, and he was not surprised at all. The recent increase in shipping prices was recorded in the annals of history and inspired the industry.
The advance layout of Global Shipping is just to maximize profits. For example, the ten newly built oil tankers account for half of the country's success.
After all, second-hand cargo ships are old ships, and they are also cargo ships. There is a big difference between where to make money from oil tankers.
"The contract has basically been signed, but then when we fulfill our obligations, the Cape of Good Hope is windy and rough, and the voyage is so far away, so we have to consider safety issues, technical issues, and the emotional issues of the seafarers. Continued Come down and let everyone express their opinions!"
In fact, Hong Kong seafarers are the most able to endure hardships.
At present, some European and American seafarers have complained about the poor conditions on board the ships built before or during World War II, and have protested to the government or asked for a wage increase.
Take the cargo ship Victory, for example. It is simply a paradise for Hong Kong sailors, with various rest and entertainment cabins for the crew; but for American sailors, it has gradually become the target of complaints and protests.
In the early 1950s, it was already popular in Europe and the United States to build "semi-automated ships". The first was to reduce the number of seafarers, and the second was to make it easier for seafarers.
No matter how tiring or miserable the environment is for Hong Kong seafarers, they can do anything. Moreover, they have no way to complain and are forced to do nothing.
Of course, Hong Kong seafarers are also different:
For seamen in other fleets, their salaries are not very high, their working conditions are difficult, and their prospects are bleak. After landing, they are addicted to gambling and art schools;
The salary and benefits of Global Shipping’s seafarers are about 30% higher. They have one long vacation (30 days) a year. If they have some group activities when they go ashore (watching movies, group blind dates, sports), these can improve their attitude towards seafarers. What’s more, Lin Zhichao strictly prohibits gambling by all sailors, and slogans promoting the dangers of gambling are clearly visible on the ship.
In the conference room, everyone expressed their opinions freely, and soon safety and technical issues were discussed successfully.
Only no one mentioned the emotional problems of seafarers. After all, is this something that needs to be considered? Aren’t the perks of round-the-world shipping good enough?
The most important thing is that if the boss doesn’t mention it, it won’t be easy for everyone to mention it.
In the end, it was Lin Zhichao who said: "The salary of all employees and seafarers will be increased by 10%, and then we will consider extending the number of annual leave days for seafarers. You can formulate the specific plan as long as it does not affect the company's operations."
Everyone was overjoyed and said in unison: "Yes, boss."
In fact, seafarers on oil tankers have the hardest time, because even if they have annual leave, if the ship does not pass through Hong Kong, there is no way to take it. Air tickets are so expensive and unrealistic. Therefore, Global Shipping has promised that after three years of service, the company will provide air tickets. Fly back to Hong Kong. As for the three-year vacation, it can be converted into overtime pay.
Of course, people in this era can endure hardship, and many people are willing to work for three years. After all, ordinary seamen can also earn an income of 8,000 to 10,000, and they have to work in Hong Kong for seven to eight years, or even ten years.
The meeting ended in a happy mood with everyone.
There is no reason to be unhappy about the salary increase for everyone. (End of chapter)
