Douglas Hsu on Succession: "What Father Doesn't Pressure His Son?" - No Need to Worry

(CNA, Taipei, 21st, by reporter Chiang Ming-yen) U-Ming Marine Transport Vice Chairman Douglas Hsu stated that his father, Hsu Hsiang-tung's, health has been gradually improving and he often returns to the office. He also joked, "What father doesn't put pressure on his son?" Regarding the succession issue, he said that the Far Eastern Group has been operating for 70 years, has corporate governance procedures, and has delegated authority to a rich and professional team, so there is no need to worry about succession. U-Ming Marine Transport's shareholders' meeting was held today, with Vice Chairman Douglas Hsu once again presiding on behalf of his father, Chairman Hsu Hsiang-tung. When asked by the media if his father puts pressure on him, he replied, "What father doesn't put pressure on his son?" adding that his father's improving health indeed creates a lot of pressure, and mentioned that Hsu Hsiang-tung is frequently back in the office. Douglas Hsu said that the group has often held video conference meetings during the pandemic, so there are no daily operational issues. He often sees Hsu Hsiang-tung in the office but does not know all of his schedules. When asked by the media if succession had been discussed, Douglas Hsu stated that the Far Eastern Group has been operating for 70 years, has corporate governance procedures, and has delegated authority to a rich and professional team, so there is no need to worry about succession, as arrangements will be made through governance procedures. U-Ming President Wang Shu-chi stated, "U-Ming hopes to be the first company in Taiwan with natural gas transport." In the third quarter of this year, U-Ming's first liquefied natural gas (LNG) carrier will join the operating fleet, further expanding its energy transport business. Regarding the closure of the Strait of Hormuz, Wang Shu-chi said it has little impact on the bulk market. The percentage of dry bulk carriers entering the strait is about 5 to 10%, mainly smaller vessels, with little impact on large ships. No U-Ming ships are stranded there. Instead, the diversion of raw material transportation due to the strait's closure results in longer voyages, which is relatively beneficial for U-Ming. On the topic of rising oil prices, he said that in the bulk market, the cost can be passed on to customers. The rise in oil prices is not faced by U-Ming alone; all competitors have the same problem. He added that the concern should be about not being able to obtain oil, rather than the price of oil. Currently, U-Ming is conducting joint procurement through a strategic partner, a U.S. raw material trading company. Regarding the ratio of long-term contracts to the spot market, Wang Shu-chi believes there should not be a fixed percentage because the market is highly volatile. (Editor: Yang Lan-hsuan) 1150521