A century-old wealthy family that rose from Shanghai

Chapter 465 The Suez Canal Closes

On June 5, 1967, in the waters off Hong Kong, the morning mist had not yet completely dissipated, and a silver-white superyacht lay quietly on the azure waves. The deck of the "Yingmei" was as large as a basketball court, and under the parasols along the edge of the deck were rattan lounge chairs. This was Chen Guangliang's "floating palace," the Yingmei. Since the situation in Hong Kong began to become turbulent in May, he had been staying here with his family, seemingly on vacation, but in reality, he was in control of the overall situation.

In the recreation room, the crisp, pleasant sound of mahjong tiles filled the air. Yan Renmei sat in the main seat, her jade bracelet swaying gently with each move. Jiang Meiying, dressed in a floral cheongsam, jokingly teased Si Yezi for her "good luck." Si Yezi, having fully recovered from childbirth, looked radiant in her light purple dress, occasionally cradling her six-month-old daughter with tender movements. Audrey Hepburn, dressed casually in white trousers, though not a frequent mahjong player, had picked up the tiles quite well, occasionally laughing sheepishly when she made a mistake.

"Mr. Chen, I have a work report to give." The female assistant knocked lightly on the door, her voice slightly hurried.

Chen Guangliang was sitting to the side reading a newspaper. Upon hearing this, he put down the South China Morning Post in his hand, smiled at his wives, and said, "You can continue. I'll be right back."

Upon entering the top-floor office of the yacht, Chen Wenbo of Global Shipping was already waiting at the door. He was Chen Guangliang's nephew, and had just arrived by small boat from the Global Group building. His forehead was still damp with sweat, and he clutched a telegram tightly in his hand: "Uncle, Father has sent an urgent telegram from New York—the third Middle East war has broken out, and the Suez Canal has been closed!"

As he spoke, Chen Wenbo's voice trembled uncontrollably, a mixture of nervousness and excitement. He knew all too well what this news meant—last year, Global Shipping had placed a massive order for 3.6 million tons of shipping capacity in Japan, and five of its 15 200,000-ton VLCCs had already been launched; earlier this year, it placed additional orders, with 10 260,000-ton and 5 227,000-ton oil tankers under construction. In just over a year, the fleet size had surged by nearly 8 million tons. Such aggressive expansion had transformed Global Shipping from "zero debt" to "high debt," causing considerable anxiety among the group's senior management, but Chen Guangliang remained confident throughout.

“Understood.” Chen Guangliang took the telegram, his fingertips tracing the words “Suez Canal Closed,” and a smile finally appeared in his eyes. He walked to the huge porthole, looked at the outline of Hong Kong Island in the distance, and slowly said, “Send a message to your father and Wenming, ordering all available ships to immediately proceed to Jeddah and Aden ports to stand by. Freight rates are definitely going to skyrocket.”

"Yes!" Chen Wenbo quickly took out his notebook to record.

“Wait a minute.” Chen Guangliang suddenly turned around, his tone becoming serious. “Add one more point—closely monitor the battlefield situation. If the war turns against Egypt, the Suez Canal may not be closed in the short term; it may have to detour around the Cape of Good Hope for a long time. Tell them to be careful when signing the lease agreement.”

"Understood!" Chen Wenbo nodded vigorously, his admiration growing stronger—his uncle had not only predicted the closure of the canal, but had also considered the subsequent developments so thoroughly.

After Chen Wenbo left, Chen Guangliang went to his desk and spread out a world shipping map. He drew an X at the Suez Canal with a red pen and then drew a route along the Cape of Good Hope—from the Persian Gulf to Europe, going around the Cape of Good Hope was nearly 5000 nautical miles longer than going through the Suez Canal, adding at least 10 days to the voyage, and a surge in freight costs was inevitable.

"Japan will also deliver two 213,000-ton oil tankers this month, and seven VLCCs will be in operation in the first half of the year," Chen Guangliang muttered to himself, pointing his finger between the Persian Gulf and the Port of Rotterdam on the map. "At the current market rate, the freight cost for crude oil to Europe can rise to at least $20-25 per ton. A 200,000-ton oil tanker can earn $4-5 million per trip, which is practically a mobile money printing machine. In less than two years, the cost of a new ship can be recouped."

He knew all too well how long the impact of the Suez Canal closure would last—in his previous life, the closure lasted eight years, during which freight rates, though experiencing slight corrections after surges, remained consistently above normal levels. Meanwhile, Global Shipping's 800 million tons of new capacity came online just before the canal's closure, allowing them to seize market share immediately and secure stable orders through long-term partnerships with oil giants like Esso, Texaco, and Shell.

"We need to expand the fleet to 70 million tons in the early 2000s, and then gradually reduce the number of ships to shore by the end of the 70s." Chen Guangliang wrote the plan in his notebook, then paused. "By the early 70s, the debts should also be paid off. A 2000 million-ton fleet will have a total value of at least 25 billion US dollars."

Thinking of this, he couldn't help but laugh out loud. In his previous life, Bao Yugang had only managed to build a fleet of 80 million tons in the early 2000s, with a large amount of loans and partnership shares involved. His net worth was estimated by the media at $10 billion, making him the richest Chinese person. In this life, however, he not only achieved his goal ten years ahead of schedule, but also seized market share from Greek and Japanese shipowners with accurate predictions. His future wealth would far exceed that of any Chinese shipping magnate in his previous life.

When they returned to the recreation room, the mahjong game had stopped. Yan Renmei was the first to greet them, her tone filled with worry: "Has something changed in Hong Kong?" The situation in Hong Kong had been tense lately, and she was constantly concerned about her four sons who remained there.

“It’s not a bad thing.” Chen Guangliang sat down with a smile and picked up the iced tea that Jiang Meiying handed him. “There’s a war in the Middle East and the Suez Canal is closed. This is an opportunity for our global shipping.”

Yan Renmei was taken aback at first, but then she realized what she meant and her face instantly lit up with a smile: "You were right! Does that mean the freight costs will increase several times over?" She knew about the expansion plans of Global Shipping and had been worried about the high debt before, but now her heart was finally at ease.

“It’s more than double.” Chen Guangliang took a sip of herbal tea. “The cost of going around the Cape of Good Hope has increased significantly, and the freight rate will rise to at least $25 per ton. In the future, our tankers can earn millions of dollars per trip.”

Jiang Meiying immediately joked, "So the eldest branch of the family is going to be even richer? Eldest sister, in that case, you'd better play for higher stakes when you play cards next time, instead of always betting small amounts with us."

Yan Renmei glared at her, then looked at Chen Guangliang: "Don't listen to her. A little gambling is harmless, but excessive gambling is harmful. Our family can't get involved in those bad habits."

“It’s precisely because we’re family that we don’t need to be so polite!” Jiang Meiying said, holding Audrey Hepburn’s hand. “Hepburn, don’t you think so? The money is circulating within our own family, and whether we win or lose, we’re all family. Isn’t that great?”

Audrey Hepburn smiled and nodded, her eyes full of gentleness. Si Yezi, carrying her youngest daughter, walked over and gently patted Chen Guangliang's shoulder: "No matter how much money you make, you need to rest more and not always think about work."

Chen Guangliang took her hand, then looked at his wives surrounding him, his heart filled with warmth: "Alright, alright, let's not talk about work anymore. Let's go up to the deck later, swim, sunbathe, and have the kitchen prepare a seafood feast tonight to celebrate."

He knew that the situation in Hong Kong was still far from over and there were still many business challenges, but the closure of the Suez Canal undoubtedly opened up a new chapter for global shipping.

The companionship of his family members is his strongest support in the ups and downs of the business world.

The freezing of the Suez Canal was like a boulder thrown into the lake of global shipping, creating huge waves that caught all players off guard.

In June, the Red Sea was filled with sunken cargo ships piled up like "steel reefs" in the canal channel, Egyptian army tanks set up cannons on the sand dunes on the west bank, and Israeli warplanes circled over the canal—this tense standoff made ship owners around the world completely abandon their illusions of "short-term navigation".

Major ship owners around the world have begun to raise prices arbitrarily. Freight rates from the Middle East to Europe quickly rose from $6 per ton to over $26, while those to New York, USA, have risen to $30 per ton.

At this moment, the superyacht "British American" was cutting through the waves of the Sea of ​​Japan and heading towards Yokohama Port.

The waves on both sides of the ship were cut by the bow, shimmering like scattered gold in the sunlight. The satellite antenna on the deck kept rotating, transmitting telegrams from all over the world into the communications room.

Chen Guangliang stood beside the bridge, holding a newly arrived telegram in his hand, a smile playing on his lips—it was a report of good news from Chen Wenming in New York: "Short-term lease contracts have been signed with Esso, Texaco, and Mobile at $30-32 per ton, covering five VLCCs, as well as contracts for four 150,000-ton and four 100,000-ton oil tankers."

"Things are settled in the US, what about Europe?" Chen Guangliang turned to ask his secretary. The secretary immediately handed him another telegram: "Sent from London by Mr. Guangcong. A contract has been signed with Shell for two VCLL vessels and two 130,000-ton oil tankers at $26 per ton."

Chen Guangliang nodded.

A telegraph operator strode over with freshly printed paper: "Sir, an urgent telegram from Yamaguchi Line and Nippon Yusen, saying they want to wait for you at Yokohama Port to discuss VLCC leasing."

"Understood." Chen Guangliang took the telegram.

He rubbed his temples, knowing the urgency of the Japanese shipowners—Japan relies on imports from the Middle East for 95% of its crude oil. After the canal closed, the original 15-day voyage to Europe and North America was extended to 30 days, and the existing tankers simply could not meet the needs of the refineries.

Ships are portable assets, and even Asia is not immune to this trend; shipping prices have also skyrocketed.

However, he also had concerns: all seven VLCCs launched in the first half of the year had been leased to European and American oil companies because doing business with Europe and America was more profitable; however, Chen Guangliang had always valued his relationship with the Japanese business community, and although Japan Shipping's leasing fees were not high, the tonnage leased was large; moreover, a pleasant cooperation with Japan Shipping would affect the goodwill of Japanese shipyards and Japanese banks towards Global Shipping.

“Send a telegram to Wenbo, telling him to go to Mitsubishi Heavy Industries and other shipyards to keep an eye on things and ensure that the nine ships for the second half of the year can be delivered ahead of schedule.”

Just as the secretary was about to turn around, Chen Guangliang added, "Send another message to Guangcong, asking him to send two 100,000-ton oil tankers from Jeddah Port to Japan for emergency relief, to calm the Japanese shipowners down first."

He knew that Japan was the "shipbuilding base" for global shipping, and Mitsubishi, Kawasaki, and Sumitomo were key partners. He couldn't afford to sever long-term industrial ties for short-term rental gains. Moreover, if Japanese refineries shut down due to oil shortages, it would affect the global chemical supply chain, which would ultimately backfire on the shipping market. To go far in this game, he couldn't just focus on immediate gains and losses.

Three days later, the "British American" slowly sailed into Yokohama Port. At the port, Ichiro Yoshida, president of Yamaguchi Line, and Takeru Satoh, president of Nippon Yusen, were already waiting with their teams. The two men were dressed in sharp navy blue suits, holding gold-embossed invitations in their hands, their faces full of eagerness.

As soon as they stepped onto the dock, Yoshida Ichiro strode forward and said in accented Chinese, "Mr. Chen, you must help us this time! Japanese oil refineries have already started to limit production. Without oil tankers, the entire Japanese industry will grind to a halt!"

Takeru Satoh chimed in, "We're willing to pay higher prices, even prepay the rental fees, just to rent five VLCCs!"

Chen Guangliang smiled and waved, leading the two men to the reception room of the "Yingmei". A maid served freshly brewed matcha, and Chen Guangliang picked up his teacup and said slowly, "Mr. Yoshida, Mr. Sato, it's not that I'm unwilling to help, but all seven ships for the first half of the year have been leased to European and American oil companies, and the contracts have been signed. We can't just breach the contract, can we?"

Their faces instantly darkened. Sato Takeru gritted his teeth: "What about ships for the second half of the year? We can wait. As long as we can book one, we'll negotiate the rental fee!"

Chen Guangliang put down his teacup, his gaze sweeping over the two men's tense faces, and his tone softened: "We have nine VLCCs to be delivered in the second half of the year, which we can all lease to you. In addition, I've also transferred other small-tonnage vessels to Japan. These vessels are fast and can ensure that the oil reaches Japan as quickly as possible."

These words were like a ray of light, instantly illuminating the eyes of Yoshida Ichiro and Sato Takeru.

"Very good, Mr. Chen is indeed a good friend of Japan!"

Later.

Accompanied by Chen Wenbo, Chen Guangliang visited Mitsubishi Heavy Industries' Yokohama shipyard. Sparks flew like rain in the workshop as steel was pushed back and forth between production lines. President Watanabe accompanied Chen Guangliang to a VLCC about to be launched, proudly pointing to the "Globe" inscription on the hull and saying, "Mr. Chen, as per your request, this 21.3-ton ship was completed 18 days ahead of schedule. Sumitomo's supply of special steel is very stable, and the third production line is already in operation."

Chen Guangliang reached out and touched the steel plates of the ship's hull; the cool metallic touch conveyed the weight of industry. He looked up at the distant shipyard, where another VLCC was under construction, the steel boom of the gantry crane drawing huge arcs in the sunlight—these steel behemoths would be the foundation of Global Shipping's control over global crude oil shipping routes.

“Very good.” Chen Guangliang turned to Watanabe and said, “Mr. Watanabe, once these ships are completed, they will be leased to Yamaguchi and Nippon Shipping companies, which will greatly alleviate the tension in Japan’s oil supply.”

Watanabe's eyes lit up instantly, and he said, "Mr. Chen truly lives up to his reputation as a good friend of Japan. The launch of these ships has eased Japan's oil shortage!"

Without this large-scale shipbuilding effort at the beginning of last year and this year, Japanese shipyards wouldn't have considered improving efficiency and expanding their dry docks. Therefore, given what happened this year, Japanese oil will inevitably become a hidden danger to the domestic economy.

A small dinner was held on the deck of the HMS British American a day later.

Ichiro Yoshida, Takeru Satoh, President Watanabe, and others were all present. They gathered around the table, raising their glasses, the champagne bubbles swirling in the glass, reflecting the lights of Yokohama Port in the distance. Chen Guangliang raised his glass, smiling at the assembled guests, and said, "To the cooperation between Global and Japan, and to the new shipping landscape after the closure of the Suez Canal, cheers!"

"Cheers!" Everyone responded in unison, the crisp sound of glasses clinking echoing in the night sky over the Sea of ​​Japan.

At this time, countries around the world were seeking 'transport capacity', and oil had become the most important resource in the world economy. The proportion of oil tankers in merchant ships had also increased significantly, accounting for about one-third. (In 1930, oil tankers accounted for 1/10 of the world's total merchant ship tonnage.)

The Wall Street Journal's latest headline reads: "Global Shipping locks in the Japanese market, leases nine VLCCs in the second half of the year, further enhancing its global shipping capacity control – this Chinese shipping company has become the biggest winner of the Suez Canal closure."

Chen Guangliang stood on the deck of the "British American" ship, gazing at the starry sky, his fingers unconsciously tapping on the railing.

He knew that this was just the beginning of a shipping boom. In the next few years, he would take advantage of this opportunity to push the size of his global shipping fleet to a peak of 2000 million tons, so that the name of the Chinese shipping magnate would be forever engraved on the monument of global shipping history.

(End of this chapter)