The birth of the Hong Kong Island family

Tokyo, Yamaguchi Steamship Headquarters.

Lin Zhichao and several senior executives of Global Shipping were negotiating with the senior executives of Yamaguchi Steamship in the conference room. During this negotiation, the top management of Yamaguchi Steamship made no secret of their hope to renew the contract at a high price. This attitude was very beneficial to Global Shipping.

Tatsuro Yamashita said, "Mr. Lin, we should be satisfied with each other after a cooperation. Presumably, you are also planning to lease the boat to us, so you will come to Yamaguchi Steamship."

Lin Zhichao did not deny this.

He said: "I really hope to rent the boat to you. Although the one-way short-term rental is high, there are advantages in long-term contracts, as long as the price is reasonable."

Yamashita Tatsuro and others understood that Lin Zhichao was reminding them that there was already a ship shortage in the Far East, especially those ships involved in smuggling. After just one or two trips, the cost of the ship had been recouped.

"Then I will talk about the conditions directly. After discussions with my colleagues, we are willing to renew the contracts for these three ships for one year at 2.8 million US dollars per year. Of course, the rent needs to be paid monthly." After that, Yamashita Tatsumi Lang's face showed confidence.

This price is full of sincerity. Although one-way short-term rental can obtain higher profits, the risk is obviously higher.

Lin Zhichao was dissatisfied with the price, but he didn't show any expression on his face for the first time. He glanced at Gao Qiqiang and motioned for you to talk.

Gao Qiqiang immediately spoke in broken Japanese: "President Yamashita, our Hong Kong shipowners now have a saying - when they have a ship, they turn on the money printing press. They often make one or two one-way short-term rentals, and in less than half a year, they have You can earn back a boat.”

When Tatsuro Yamashita heard Gao Qiqiang's words, he smiled and said confidently: "Your ship is so big, and Mr. Lin's work style is so steady. I believe you will not take such a risky voyage. Mr. Lin, 2.8 million For a one-year lease of US dollars, after deducting insurance premiums, labor, accidents, etc., I believe that within one year, the price you paid for purchasing the ship has almost recovered. The current market is indeed good, and the price we offer is also very good."

What good!

Currently, shipping in the Far East is at its peak. A large number of Japanese goods are waiting for transportation at the port, while many shipowners in Hong Kong have taken the risk of smuggling. The overall market has increased by about 2 to 3 times. The price given by Tatsuro Yamashita was only twice as much, so the Japanese were obviously very smart.

Moreover, the price of second-hand ships in Europe and the United States has also increased. This is what Willis told Lin Zhichao through an overseas phone call.

Lin Zhichao said: "Japan's economy is now like clockwork, and the goods that need to be transported are piled up in major ports. If this situation continues, I will consider packaging these three ships and increasing the lease time to 3 to 5 years. , but the price cannot be less than 3.2 million US dollars per year. President Yamashita, what do you think of my suggestion?"

Several senior executives of Yamaguchi Steamboat looked at each other. They did not expect that things would develop like this.

Yamashita Tatsuro and his colleagues looked at each other for a few times, and then said: "A long-term contract of 3 to 5 years is certainly good, but the annual rent is too expensive."

Therefore, Lin Zhichao analyzed the future trend of Japan's economy, as well as the market situation of Hong Kong shipping and even Asian shipping in the next few years. After some deception, Yamashita Tatsuro and his colleagues made eye contact.

Finally, Tatsuro Yamashita said: "Mr. Lin, let us discuss it. After all, you suddenly proposed a long-term contract."

"Please go ahead"

Later, Yamashita Tatsuro led his men out of the conference room, leaving the staff to entertain Lin Zhichao and his party.

It was not until half an hour later that Yamashita Tatsuro and his subordinates returned to the conference room for negotiations again.

"We can accept a three-year contract, and the price can only be US$3 million per year. If it is a five-year contract, the price can only be US$2.6 million per year."

After saying that, Yamashita Tatsuro once again showed confidence, meaning that this condition is very good, please agree!

Lin Zhichao has also considered that now the price of cargo ships has increased by about 20%. The price of an 8,600-ton second-hand cargo ship aged 20 to 25 has risen to about 550,000 US dollars; originally, it only cost more than 450,000 US dollars.

The cargo ships rented to Yamaguchi Steamship were 35,000 tons, and they were all second-new ships with poor performance. The condition of the boat also determines the price of the boat rental; if the price increases by 30%, the price of the three boats has risen to US$2.15 million.

The annual rent is 3 million U.S. dollars, and if things go well, the net profit can be 2.1 million U.S. dollars. Of course, this does not include the risk of major repairs or accidents. This depends on luck. (As long as the management is good, the accident will be reduced to the extreme)

Therefore, if you are lucky, you can earn back an old boat in a year, because when considering buying a boat, you can only calculate the current ship price.

Compared with taking a dangerous journey, it is really profitable. Of course, Lin Zhichao's ship is too big and the risk is higher.

Lin Zhichao immediately said: "Sign a five-year contract, but the rent must be 3 million US dollars per year for the first three years, and you can be given 2.6 million US dollars per year for the next two years."

There is a penalty for half a year to one year's rent. Once the contract is signed, the possibility of breach of contract is very small.

This time, Yamashita Tatsuro made eye contact with his colleagues and stopped procrastinating.

"It's a pleasure to cooperate. Let's discuss the details and sign the contract tomorrow!" Yamashita Tatsuro extended his hand and then said.

He and his colleagues are very optimistic about the performance of these three ships. If they were replaced by other cargo ships, such as European ships in their 20s and 30s, they would not agree to this condition.

Because some cargo ships have a carrying capacity of 10,000 tons, they may actually only be able to carry seven to eight thousand tons, or even five to six thousand tons. The cabins of the Liberty Ship and Victory Ship not only protect the cargo very well, but the design of the cabin is also very reasonable.

As for the construction method of welding rather than rivets, in fact, these merchant ships have not had any accidents since World War II, and many people now feel that their performance is very good.

Lin Zhichao also extended his hand and said with a smile: "Happy cooperation."

Afterwards, Yamashita Tatsuro immediately invited everyone to have a business banquet in the evening, and Lin Zhishenhua agreed.

Back at the hotel, Lin Zhichao held a meeting with his staff and lawyers to discuss some contract details, hoping that the negotiation and signing tomorrow morning would proceed smoothly.

Lin Zhichao is still very satisfied with this lease.

The contracts of these three Liberty Ships and Victory Ships expired at the end of 1955, and they stopped running long-term contracts after that. When the Suez Incident broke out in 1956, they sought a three-year high-priced long-term contract.

The more expensive the shipping price, the more willing the lessor is to charter a ship and make a long-term contract; the more the shipping season is off-season, the more willing the lessor is to charter a short-haul ship. Therefore, it is actually beneficial to both parties because mutual trust and mutual benefit are achieved.

From 1959 to 1961, world shipping experienced a slight downturn, and Lin Zhichao happened to sell some old ships in advance and began to build a large number of new oil tankers. Through this adjustment, global shipping is more efficient and develops faster than its peers.

evening.

Lin Zhichao and his men rushed to the appointment, still choosing to stay at the geisha house, this time it was even more luxurious. Lin Zhichao didn't mind if he and his men attended this kind of business banquet, but he would set an example and refuse to take him away in the end.

In other words, he came to this kind of business banquet purely with an artistic mentality and a mentality of doing as the Romans do. But we must ensure that we sit still and not get lost in the sensuality.

As a boss, he has this attitude, so his subordinates will naturally have the same attitude. Although he has an escort, he can treat him politely and in a gentlemanly manner. Otherwise, just for the sake of temporary enjoyment, leaving a bad impression on the boss and the future, that would not be good.

The monthly salary of mid-level cadres at Global Shipping and Cheung Kong Industries ranges from 300 to 500, and the salary of senior cadres ranges from 600 to 800, with bonuses at the end of the year. The important thing is that everyone can see that the company is developing at a speed that can be seen with the naked eye, and naturally feels that there are still huge channels for growth.

Cherish your work more and learn from your boss's style - study hard, work hard and struggle.

During the dinner, Tatsuro Yamashita said: "Thank you Lin Sheng for your support to us and your optimism and support for the Japanese economy. I would like to toast you."

Everyone raised their glasses and drank the sake in one gulp. On both sides of the table were girls in kimonos, one pouring wine and the other picking up food. It was easy for people to get lost in it. However, the Chinese have always been conservative and adhered to Confucian principles, so Lin Zhichao and his men were still able to achieve "no chaos". ZBism can corrode people. In a few decades, the Chinese culture may have changed.

Yamashita Tatsuro's words revealed his gratitude, because Japan is indeed short of ships. Now they go to Hong Kong to rent a ship, but it is difficult to find one they like. It is either too small or the price is high.

The lease of 35,000 tons accounts for more than 10% of the company's total load capacity for Yamaguchi Steamship, which can be said to be a very important transportation force.

Lin Zhichao said with a smile: "President Yamashita is serious! I chose to cooperate with you because I am very optimistic about Japan's future economic trend and hope for long-term cooperation. And I believe that this kind of operating method of Global Shipping is conducive to bank loans. In this way I can quickly expand shipowners. So, win-win cooperation!”

As soon as he finished speaking, Dalang Shangxia asked: "Lin Sheng, are you guys going to have another ship soon? To be honest, we still need some transportation capacity."

It requires a lot of transportation capacity!

But I can only say it conservatively.

Lin Zhichao said with a smile: "Not necessarily! But I have reached a cargo ship loan agreement with HSBC Bank in Hong Kong, and the two parties have a relatively good foundation of mutual trust."

He didn't dare to guarantee it.

When Tatsuro Yamashita heard that HSBC had provided a loan to Global Shipping, he immediately knew that Global Shipping actually had many ships. He immediately felt that its strength was very strong and that it might be one of the top Chinese private ship owners.

"Okay, then I'll just wait for the good news!"

Lin Zhichao nodded and did not refuse, but at the same time he decided to add another large Japanese shipping company customer early next year.

The next day.

The contract was signed successfully, and both parties breathed a sigh of relief.

The rent of this kind of contract is paid monthly. If you want the customer to pay it every quarter or half a year, it is obviously impossible. Others are short of foreign exchange, and only by paying the rent once a month can they avoid excessive foreign exchange.

By the mid-to-late 1950s, Lin Zhichao would gradually consider accepting payments in Japanese yen, which would benefit both parties.

For him, the Japanese yen maintains its value, and ships can be built or repaired in Japan;

For Japanese tenants, avoid spending too much foreign currency.

After getting the long-term lease contract in Japan, Lin Zhichao returned to Hong Kong and came to Sandus's office and handed him the contract.

After reading the contract carefully, Sandus looked a little surprised. This contract was very important.

He then said, "So, how much do you want to borrow?"

He was surprised by the value of this contract. If everything went well, Lin Zhichao could use this contract to purchase a second-hand ship with 3 to 4 times the load capacity within five years; and this was without taking into account the loan.

This is equivalent to Lin Zhichao earning three more ships in one year with three ships.

Sandus faced it for the first time. He did not expect that shipping could be so profitable. Of course, it did not let him ignore the risks.

Lin Zhichao immediately said: "We have 3 million US dollars in rent in the first year, so I want to loan this amount."

Sandus immediately said: "This is almost impossible! If I were in the project department, it would be impossible to grant you such a high loan amount. Although your annual rent is 3 million US dollars, don't forget that shipping is risky. . And it is impossible for our bank to turn a blind eye."

Lin Zhichao knew that things needed to be discussed slowly, so he was not in a hurry; at this time, he saw a navigational chart from the British colonial era hanging in the import department office.

He pointed to the navigation chart and said: "Mr. Sandus, Britain dominates the world, with colonies all over the world. It is called the 'country where the sun never sets'. What does it rely on?"

Sandus was stunned at first. He didn't understand why Lin Zhichao changed the subject. This young man was always very eloquent. Could there be any reason to convince him?

He asked tentatively: "Is it because there are strong ships and powerful cannons?"

Lin Zhichao nodded and said: "Sturdy ships are the most important. After World War II, the world entered an upward trend in economic development, and global wars will no longer occur. And strong ships can make a decisive contribution to the world economy, because Its freight is cheap and its cargo volume is large. Japan's economy is undergoing a miraculous change. They have a strong industrial foundation. Now they are supported by the United States and have become a supplier of war materials. According to the current situation, Japan has gained The war orders may be several times the size of the Marshall Plan. I will lease merchant ships to them and I can make a profit of tens of millions of dollars in five years."

Sandus was amazed when he heard Lin Zhichao keep praising Japan's economic prospects. He also knew what kind of medicine Lin Zhichao was selling. He just wanted to reassure HSBC that the contract in his hand was the best letter of credit.

But a loan of 3 million US dollars is basically a bet on his future. If he agrees to help, it will be equivalent to the two of them being completely tied together in the future.

"So, you want to be the first to sign a long-term contract with Japan and gain their trust. Use the money earned from the Japanese market to expand the number of shipowners." At this time, Sandus suddenly noticed Lin Zhichao's intention and asked curiously.

Although Japan now also comes to Hong Kong to rent ships, after all, they are one-way short-term charters. Lin Zhichao can really win the favor of Japanese shipping by renting for a long time.

Lin Zhichao nodded and added: "There are many favorable factors for shipping in Hong Kong. Countries such as the United Kingdom, the United States, and Japan will have many enemies in the world. If there are too many enemies in shipping, it will be restricted. Hong Kong is a In a free port, ships of any nationality can come in. Similarly, we can also own ships of any nationality and fly the flag of any country, as long as it is beneficial to us..."

Sandus was impressed by Lin Zhichao's words and added a bit of admiration. This young man's analysis of the situation, understanding of the market, and grasp of management all have the potential of a 'future shipping king'.

But thinking about the huge sum of 3 million US dollars, he still had a headache and looked embarrassed.

Originally, he initially thought that Lin Zhichao's loan might be US$1 million. But now it has tripled, which surprised him.

When Lin Zhichao saw Sang Da Shi lowered his head and kept silent, with a look of hesitation on his face, he asked, "Are these reasons and conditions not enough?"

Sandus was embarrassed and said: "Mr. Lin, our bank has always been more cautious about the shipping industry. Mr. Lin is also very clear about the rules of bank loans."

Lin Zhichao thought of something and said, "You think the guarantee is not enough, right?"

Yes, that's it. Sandus immediately said: "Yes. Your ship is not worth three million U.S. dollars, but you want to borrow three million U.S. dollars. It is still a problem. Although the contract is worth more, there are still risks."

Bankers are all prudent, and he did not boldly agree to help because of their relationship. Because assuming he agrees to help, it is almost a sure thing, but he will also bear the risk.

Lin Zhichao thought for a while and said: "If a Japanese bank is willing to open an LC for me, will HSBC be willing to lend me money?"

LC is the abbreviation of Letter of Credit, which is a bank letter of credit. If the bank can issue a letter of credit, it proves that there is no problem with the lease protection.

Sandus's eyes lit up and he said: "Of course there is no problem! As long as you can get this LC, I can guarantee that you will get a loan."

For Sandus himself, he just wants HSBC to reduce risks. If Lin Zhichao persuades other wealthy Chinese investors to guarantee or mortgage Cheung Kong Holdings, it will be a "letter of credit." Now that this LC is issued by the Bank of Japan, it is even more guaranteed.

At that point, HSBC is unlikely to disagree.

"It's a deal!"

"You have no jokes (hard translation)"

Sandus felt that Lin Zhichao's hope of success was not great. If he failed, he would not give up. By then, for example, a loan of US$1.5 million might be easier to achieve.

At this time, Lin Zhichao also understood that this LC was difficult to open, but he still chose to try. If it doesn't work, plan again.

He understands the bank's prudent approach and its 'fear' of shipping risks, but he must obtain more bank loans.

Because if he obtains a bank loan of US$3 million at this time, Lin Zhichao can purchase a large number of ships and put them into operation again. The amount of money earned in a year is probably a huge amount.

Shipping was the most profitable industry from the 1950s to the 1970s, even behind real estate. In the late 1970s in his previous life, Bao Yugang had a fortune of 6 billion Hong Kong dollars, and the wealth of the four major families would be good at 1 billion. At the peak of Bao Yugang's life, one oil tanker was equivalent to a medium-sized building in Hong Kong, and fifty oil tankers were equivalent to fifty medium-sized buildings.

Just ask this strength, who can match it!