Hong Kong Island: From a small stall to a global supplier

Athens, Greece.

After politely hanging up the phone, Dynacom's expression suddenly turned cold, and he slammed his hand on the table.

"Those damn stupid BP Englishmen!" Dynacombe cursed mercilessly in front of his secretary and subordinates, "Stinking primitives like herrings!"

"I will never understand what these brainless, rude British swine are thinking. How can people be so stupid? Do they think we are still in the era of the British Empire? If you don't want the other party to acquire you, can't you be more tactful and polite?"

"At the very least, you should visit them in person, explain the difficulties and the reasons behind it, and at least avoid offending them!"

Dynacon truly couldn't understand how he had obtained a file on Wang Yaotang within just a few hours. Although the file wasn't detailed, he had already figured out the most crucial points.

There was no need for further speculation or evidence; his years of experience in the shipping industry told him that this was definitely the work of this kid.

It reflects the flamboyant, radical, and reckless style of young people.

Dynacon is a world-class shipping magnate whose core business is renting out his fleet of ships to transport goods.

To draw an analogy, it's similar to the ancient shipping guilds or escort agencies.

Having a certain level of military support is important in this line of work, but the most important thing is having a wide network of contacts. He can't possibly send all the military forces he has across the Indian Ocean to the South China Sea to cause trouble for someone surnamed Wang just because a customer has a problem with one shipping route.

Leaving aside the troubles of warships crossing the Suez Canal, the countries along the Red Sea route need to be bribed, and even if they could win, how would they find one or two small warships in the vast ocean on someone else's territory?

He could never directly attack Wang Yaotang, because that wouldn't be business competition, and he himself was afraid of that.

Now that the business has been accepted, problems have arisen with the cargo and the ship. Doesn't this shipping magnate have any pride? It wouldn't be right not to resolve the issue.

But the core of the problem has nothing to do with him at all; it's that the other party wants to acquire the mining area. What can he do?
He initially thought that Rio Tinto, a company focused on mining development, was making a bad move by partnering with BP, a company with a complete supply chain, and now it has come true.

Different business philosophies lead to completely different approaches and methods when dealing with problems. He unleashed a furious tantrum, and everyone else in the office shrank back, afraid to speak.

The operational logic of such ultra-large shipping companies differs significantly from that of other companies. The task of the professional management team is to develop the maximum capacity of the company's fleet through 'logistics,' while the company's business sources and navigation range largely depend on the personal prestige and network of the company's leader, Dynacon.

Having transportation capacity alone is completely useless; you can't get any business that way.

These world shipping magnates all have their own spheres of influence.

The current world shipping magnates who dominate the Asian region are:
Hong Kong: The Shipping King: Owning the world's largest privately owned fleet, with a total tonnage of 2100 million tons. His business primarily consists of oil tankers and cargo ships, with routes covering major ports from Asia to Europe and the Americas. He holds a particularly important position in oil transportation from the Middle East to Asia. In 81, he was dubbed "The Ruler of the Sea" by Fortune magazine.

Taiwan: Chang Jung-fa: Vigorously expanded container shipping business, opened routes from Taiwan to the Middle East and Europe, and was known for its 'green fleet'. It was the first to adopt all-container ship operation and is a pioneer in global container shipping.

Singapore: Zhang Yunzhong: Holding an advantage on routes from China, Japan, and South Korea to Europe, his fleet primarily focused on flexible near-sea transport and was deeply involved in the early logistics between Laos and China, earning him the title of "Singapore Shipping King".

South Korea: Cho Joong-hoon: Rising through military contracts and container shipping, his company Hanjin Shipping covers major ports around the world and dominates trade between the US and South Korea.

Greece: Stavros Niarchos: still owns more than 80 tankers and bulk carriers with a total tonnage of 400 million tons, and his business covers global oil transportation and commodity trading. The supertankers he led the construction of once set tonnage records.

Norway: Johan Fredericksen
United States: John Frederickson
Israel: Yuli Ofer
……

Dynacon, a Greek company, has only recently risen to prominence and is currently catching up with Niarchos. It mainly engages in the tanker business, and its expansion in Asia was only possible by securing a foothold through low-price partnerships with Rio Tinto. Therefore, he must find a way to resolve this issue.

At the very least, you need to show your attitude.

After venting his anger, he immediately called the shipping magnate, hoping to be introduced to Wang Yaotang. After hanging up, he boarded a plane and headed straight to Hong Kong.

The shipping magnate only learned of the events in the South China Sea and Philippine waters after receiving a phone call. He was shocked that Wang Yaotang had actually deployed warships; his actions were truly...

They have none of the Chinese traditions of 'humility,' 'caution,' 'honesty,' and 'politeness'.

The shipping magnate had arranged for Wang Yaotang to come over in advance. After all, they were all on the same side, so he was bound to express his support for his own people beforehand. Of course, he was also genuinely curious about the whole story.

Wang Yaotang never intended to keep this a secret; even without the shipping magnate, he would have spread the word within the industry.

Wang Yaotang remarked with considerable emotion, "Actually, I've found that many businesses are no different from running a 'sex club'."

"The gang of thugs kill people to fight for the right to manage a store or the protection fee for a street. The shipping is the same principle; it's just turning a store into a commodity and a street into a shipping route."

Despite the constant changes, there's a reason why Hong Kong filmmakers have always seemed to be vying for territory in their films...

"You really want to acquire KPC's shares and get involved in the coal mining industry?" Bao Chuanwang personally poured Wang Yaotang a cup of tea and asked with a smile.

“It would be great if we could plant our flag directly in KPC,” Wang Yaotang said with a smile.

Bao Chuanwang was stunned. What the hell is this flag-planting? You haven't forgotten your roots!
"Haha, even if we can't plant the flag, we can still be grooms and lead the ladies to make money in the arena."

The shipping magnate raised his hand and rubbed his face, both amused and exasperated. "Your description is a bit... alright, how come a sea coachman isn't a coachman? It's quite fitting."

Wang Yaotang burst into laughter.

"How do you plan to solve the Dynacon problem? He signed a 20-year contract with Rio Tinto and paid a heavy price for it. If you want to get rid of him and replace him, not to mention his losses, you won't make any money if Rio Tinto doesn't give you a new contract," the shipping magnate worried.

"It's not that exaggerated. What use would it be for me to snatch that lousy contract from him?" Wang Yaotang curled his lips. "No profit, no say, it only increases the apparent capacity, and I have to invest so much money. Am I crazy? Uncle Bao, isn't that why you want to switch from sea to land?"

The ship king nodded.

The global economic contraction in the 80s severely impacted the shipbuilding industry, leading to a significant drop in shipping demand.

The shipbuilding industry reacted even earlier. Before the 73 oil crisis, global new ship orders peaked at 1.3 million deadweight tons, but by 78 they had plummeted to 990 million deadweight tons.

Global shipbuilding deliveries decreased from 75 million tons in 3600 to 80 million tons in 1500.

This translates to a decrease in global seaborne volume: from 37.1 billion tons in 1980 to 30.9 billion tons in 1983, a cumulative decline of 16%.

There was a surplus of shipping capacity. In 1979, the number of idle ships was 980 million deadweight tons, which surged to 8000 million deadweight tons in 1982, equivalent to 14.4% of the total number of ships at that time.

It was based on these data packets that the shipping magnate withdrew by sea and set sail.

Of course, this is from a global perspective.

Specifically in East Asia, due to the high labor costs in Europe and America, many physical companies have shifted their primary processing industries to Japan, South Korea, and Southeast Asia, resulting in an upward trend in the shipping industry in East Asia.

Container transshipment volume in Southeast Asia increased from 610 million TEUs in 1980 to 1270 million TEUs in 1985.

South Korea relied on its export-oriented economy, and its maritime exports grew at an average annual rate of 12% from 1980 to 1989. It was during this period that Cho Joong-hoon's Hanjin Shipping became a shipping magnate.

Wang Yaotang also knew that starting in the 80s, Japan transferred industries such as textiles and electronic assembly to South Korea and Taiwan, which in turn transferred some of their production capacity to Siam and Malaysia. The demand for cross-regional supply chain transportation would further spur the counter-trend development of the regional shipping industry.

As an industry leader, Bao Yunwang knew these data better than Wang Yaotang, but he was old, had no son, and the idea that 60 was the age for hard work was too far-fetched... Retreating to sea and traveling by sea was the best way to preserve the value of assets.

Transformation is never that easy.

"So what exactly are your plans? Of course, I don't mean to pry into your business secrets, but if you want to... plant your flag in the shipping industry, I can help you get some ships over." The shipping magnate smiled and shook his head, saying, "Planting your flag, you're really something else."

Wang Yaotang smiled reservedly, "I'm a very steady person, I'll take it one step at a time."

The shipping magnate looked at him strangely. "You, steady? That's the biggest insult to 'steadiness'!"
"This time, I want the coal transportation rights and pricing rights for Hong Kong and Siam!" Wang Yaotang said softly.

"Hiss..." Bao Chuanwang gasped.

This isn't just about making a little money on transportation. If this kid really gets a monopoly, it won't just be about how much money he makes; it'll be about devouring people!

"No, do you even know how difficult this is?" Bao asked in a deep voice.

“It’s definitely more difficult than monopolizing the stone mining industry. Last time, the opponent was just Old Lu, but this time there are many more opponents. Mining giants like BHP Billiton won’t give up so easily.” Wang Yaotang shrugged. “But it’s not as difficult as I imagined.”

“Hong Kong’s annual coal consumption is only about one Castle Peak Power Plant. The steel plant of Shiu Wing Steel still has two 50-ton electric arc furnaces installed. As for Siam, local iron ore is scarce, so steel plants don’t consume much coal. It’s mainly used for power plants.”

“The venue is small and the profit is low. They might play a couple of rounds with me out of politeness, but they'll eventually give up when they realize it's not worth it.”

"Look, it's really no different from fighting for land in Hong Kong."

The shipping magnate smacked his lips and suddenly said with great envy, "It's still good to have your own military strength; then you can speak with confidence."

“Unlike me, I started to make my fortune 50 years ago, and I couldn’t rely on the support of my hometown at all. By the time the reform and opening up came, I was already old.”

The core business model of the shipping magnate is long-term leases.

Take Shell as an example. It needs 10 tankers to meet the company's operational needs, but it only utilizes 40% of its capacity and spends most of the time idle. It also has to bear the expenses of purchasing tankers, maintenance, depreciation, and operation, which is why it is better to lease them.

By leveraging the time difference in capacity management, the shipping magnate can enable his fleet to utilize 80% or more of its capacity, creating a win-win situation.

The contracts signed by both parties are for 10 or 20 years. The lease stipulates that the lessee is responsible for cargo insurance and route safety, and does not need to bear the route risk.

From the 50s to the 80s, Japan and South Korea were semi-colonial countries, and several Southeast Asian countries were still fighting for independence. The West's power in the region remained strong, with troops stationed there. The safety of the shipping routes of companies like ESSO and Shell was guaranteed by the state.

The expansion of the shipping magnate's fleet relied heavily on the support of financial institutions such as HSBC, providing low-interest loans secured by charter contracts. The core of his success was based on international law and commercial contracts, rather than armed forces.

Advantages: Low risk, rapid expansion.

Disadvantages: Despite having the world's largest shipping capacity, it has poor profitability, low bargaining power, and is highly dependent on banks and customers.

Wang Yaotang was different. He seized the two territories of "Hong Kong" and "Siam" through sheer military force, which brought him great profits and influence, and he was not subject to the control of others.

After arriving in Hong Kong, Dynacon wisely stayed at Wang Yaotang's Yaofu InterContinental Hotel. In the evening, he hired the shipping magnate to host a small dinner, inviting many people from the Hong Kong shipping industry.

Among them were four shipping magnates.

Shipping magnate: Dong Haoyun's son, Dong J. Hua, owned the world's largest oil tanker, the "Sea Giant" (56 tons). In 80, he acquired the British Fornes White Company for US$1.125 million, filling the gap in the South American shipping route.

Shipping magnate: Zhao Congyan, whose company Huaguang Shipping mainly dealt in bulk cargo ships, was known as one of the "Four Great Shipping Magnates" along with Bao, Dong, and Cao.

Shipping magnate: Cao Wenjin, Wanbang Shipping also mainly deals in bulk carriers.

Of course, even the latter three combined can't compare to the self-inflicted wounds of the shipping magnate.

The shipping magnate Tung passed away last year, and Orient Overseas Container Line (OOCL) has fallen into a financial crisis due to its overly rapid expansion.

Zhao Huaguang, the shipping magnate, also faced a financial crisis as a result.

As expected of Cao, the shipping magnate, he was quick to act, cutting his fleet in half in the past two years and stabilizing the situation.

The gathering of shipping magnates from all over the world is quite a topic, and the news can boost morale in the shipping industry.

The group exchanged information about the current state of the shipping industry and discussed coping strategies. The atmosphere was very pleasant. Wang Yaotang also joined in the conversation, expressing his intention to try his hand at the shipping industry, which was well received by the group.

There was no real resistance from the group. Having Wang Yaotang wouldn't take away any orders. If anyone was going to die, it would be the smaller companies first. Everyone was just getting through this difficult time together.

After a brief exchange, Bao Chuanwang took Wang Yaotang and Dai Nakang to a private room for a private talk, and only then did the other people in the industry realize the main purpose of today's banquet.

But before the news of Wang Yaotang shelling the Dynacom cargo ship spread, everyone was curious about what had happened.

“Mr. Wang, it’s a pleasure to meet you.” Dynacom didn’t try to interrogate him.

Just like how ancient镖局 (escort agencies) would try to establish a good relationship with bandits after their goods were robbed.

"Haha, I'm also very happy to meet Dynacon, the shipping magnate."

After exchanging pleasantries, the conversation turned to the Eucalyptus Voyager. Dynacombe asked with a smile, "The Eucalyptus Voyager encountered some trouble in Philippine waters. I heard from my crew that it was fortunate that Mr. Wang came aboard, which is how we were rescued. I wonder what the current situation of the cargo ship is?"

Wang Yaotang chuckled, surprised that the old man was so humble. "It's not really a rescue. Perhaps the radar malfunctioned. My ship had a minor collision with the Eucalyptus Voyager at sea. Fortunately, neither of us was seriously damaged. We're currently undergoing emergency repairs in the South China Sea. Mr. Dynacon, you don't need to worry."

"That's good." Dynacon breathed a sigh of relief and laughed, "Then it seems we'll have to trouble Mr. Wang. I wonder how much the repairs will cost and when the boat can be repaired and set sail again."

"Money doesn't matter. Helping others when things happen at sea is the rule. As for getting back on the road... it seems we'll need some more time."

Wang Yaotang: Rio Tinto and BP haven't given me an explanation yet.

"Sigh, this kind of thing has nothing to do with me, but I have to come because of business. We're all in the same industry, so please help me out, Mr. Wang."

Dynacon: Let's save face for each other. Your ship will eventually go to Europe.

“The sea conditions are complex and the weather is unpredictable, so unexpected situations are inevitable. Even Dynacombe, the shipping magnate, cannot guarantee the safety of ships from Indonesia.”

Wang Yaotang: Give the shipping magnate face, but only this once.

"Haha, thank you very much, Mr. Wang. When you come to Greece, I will treat you to a proper banquet."

Dynacon: That's enough. If anything else happens, it's none of my business.

Seeing that the two sides had reached an agreement, Bao Chuanwang laughed heartily and personally poured red wine, saying, "Come on, I wish you all a pleasant cooperation."

"Happy cooperation!"

We are both rivals and collaborators.

One phone call was made, and Hai Dazhao released the person.

Dynacon made it clear to the captains below that if they encountered any more warships belonging to the Wang family blocking their way, they should surrender immediately.

We'll only charge you that pittance for shipping, and that's about all the security services we can provide. If you want more, you'll have to pay extra!

……

Henderson, Distin Miller, and Mason received confirmation, but instead of feeling happy that the problem had been solved, their expressions became even more grim.

Damn bastard!
"Contact the Chinese ambassador to Laos to lodge a strong protest!" (End of Chapter)