Shih Wei Policies & Business Introduction

1. Business scope:
1). Shipping agency services
2). Shipping transportation
3). Wholesale of ship and component parts
4). Retail sale of ship and component parts
5). All business that are not prohibited or restricted by law, except those subject to special approval

2.Revenue distribution (consolidated revenue distribution in 2019 and 2020) Unit: %

Business activities



Rental revenue



Cargo revenue



Other operating revenues



Service revenues







3.Main services:

The Company provides maritime shopping services. As of the end of April 2021, including vessels owned by Company’s 100%-owned Panamanian subsidiaries and sub-subsidiaries, the Company operates a fleet of 37 vessels (including one under BBHP). Trading areas are as follows::

  1. Kamsarmax and Panamax: 3 units. Global trading with commodities such as iron ore, coal, grains, and industrial materials.
  2. Ultramax and Supramax: 4 units. Global trading with commodities such as iron ore, coal, grains, and industrial materials.
  3. Handy: 20 units. Global trading with commodities such as steel products, iron ore, coal, cement clinker and industrial materials .
  4. MPP vessels: 6 units. They carry machineries, wooden products, steel products, chemical products, wood pulp, equipment and or dry bulk and general cargo trading in the Indian Ocean, Pacific Ocean and Asia.
  5. Log carriers: 3 units. They carry logs and or dry bulk and general cargo in the Indian Ocean, Pacific Ocean and Asia.
  6. Coastal passenger vessel: 1 unit. Coastal trading in Taiwanese waters.

4.New services development:

The Company operates the fleet on short or long term time charters trading in compliance with the international trading regulations and is able to provide services for any new route with reasonable remuneration.

1.     Current Status and Future Development of the Industry:
The outbreak of the COVID-19 pandemic in early 2020 began affecting economic activities in China and its impact spread to healthcare systems across the world, causing a sudden plunge in global economic activities. The growth rate of the cargo import/export volume was low in 2020. The pandemic in the first half of the year triggered a downward spiral of the global economy, contraction of the financial market and unprecedented panic. The instability in trade between China and other countries also affected economic activities and shipping. In addition, the flooding in China, rainy season in Brazil, hurricanes in Australia, and the pandemic affected the economy in the first quarter. After the pandemic had spread, countries have adopted lockdown policies, and only maintained minimum trade and economic activities. The import and export volume of dry bulk shipping had declined by more than 3% in the first half of the year.
The BDI between 2020 and the first quarter of 2021 cratered at 393 points (May 14, 2020) and rose to its highest point of 2,319 points (March 22, 2021). As a result of the epidemic, the average BDI in 2020 was 20% lower compared to 2019. The BDI rose quickly after the start of 2021 and dropped before Chinese New Year as it had in the past. However, the market rose quickly when operations resumed after Chinese New Year and the growth held steady. The average BDI in the first quarter was 1,738. It has been an unprecedented period of growth in the low season which rivaled that of the peak season. With a rising vaccination rate and success in combating the epidemic, we look forward to the rise of the BDI and the development of the dry bulk market in 2021.
In terms of market demand, bulk shipping mainly focuses on commodities such as iron ore, coal, and grains. The commodities are mostly raw materials and semi-finished products. The market demand and global commodities trading volume are closely connected.
In terms of the macroeconomic environment, according to estimates of the International Monetary Fund (IMF) in the "World Economic Outlook" published in January this year, the global economic contracted by 3.5% in 2020. The global economy contracted by approximately 4.9% as a result of the severe COVID-19 epidemic in the first and second quarters of 2020. China has implemented effective control of the epidemic and made substantial investments in economic recovery policies in the third quarter which stabilized the economy and trade to achieve growth. The United States passed a relief package of approximately US$1.9 trillion in March 2021, which contributed to growth in the market. We expect global economic activities to gradually recover in the second half of the year when the vaccination rate increases and the epidemic is controlled.

2.     Relationship with Up-, Middle- and Downstream Companies
The maritime shipping industry is a part of the transportation service industry and mainly provides maritime shipping services for cargo. It is different from the general manufacturing industry and does not involve production of goods or supply of raw materials. There is no clear presence of up-, middle- and downstream relationships in the industry.

3.     Overview of Industry Trends:

  1. The current world shipping regulations are mainly characterized by measures for reducing environmental hazards caused by the emissions of vessels. These measures include calculating the carbon footprint of ships, using low-sulfur fuel to reduce sulfur oxide emissions, retrofitting ships with ballast water management systems to reduce water pollution, building future environmentally friendly ships that reduce nitrogen oxide emissions, or replacing fossil fuels with natural gas as the power source of vessels.
  2. Shipbuilders will focus on building new vessels that are energy efficient and protect the environment. Shipbuilders respond to international regulatory requirements and set goals for building new types of vessels that do not cause pollution.
  3. The trend for the future is a modern, environmentally friendly and fuel-efficient fleet.

4.     Competition in the Industry
The fierce competition in the global shipping market and the implementation of international regulations for preventing environmental pollution compel shipping companies to invest in the modification of vessels in operation, strengthen management, retrofit equipment when required and pursue economies of scale to reduce costs. We work with high-quality shipyards to construct energy-efficient and environmentally-friendly new buildings to maintain a highly competitive fleet.