The Birth of the Hong Kong Island Family.

Chapter 135 [A Gentleman's Agreement] (Ask for a monthly ticket!)

Tokyo, Yamaguchi Steam Turbine Headquarters.

Lin Zhichao and several senior executives of Global Shipping are negotiating with the senior executives of Yamaguchi Steamship in the conference room.During this negotiation, the top management of Yamaguchi Steamship unabashedly hoped 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 point.

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

Tatsuro Yamashita and others understood that Lin Zhichao was reminding them that there was a shortage of ships in the Far East, especially those ships involved in smuggling.

"Then I will directly talk about the conditions. After discussion with my colleagues, we are willing to renew the contract for these three ships for one year at a price of 280 million US dollars. Of course, the rent needs to be paid once a month." After finishing speaking, Yamashita said There was confidence on Lang's face.

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 at the first time, he glanced at Gao Qiqiang, and motioned for you to talk.

Gao Qiqiang immediately spoke in broken Japanese: "President Yamashita, our shipowners in Hong Kong now have a saying-there is a money printing machine when there is a ship. They often take one or two trips for one-way short-term rental. Can earn a boat back"

When Tatsuro Yamashita heard Gao Qiqiang's words, he showed a smile and said confidently: "Your ship is so big, and Mr. Lin's style of doing things is so steady. I believe you will not take such a risky voyage. Mr. Lin, 280 million yuan A one-year charter in US dollars, deducting insurance premiums, labor, accidents, etc., I believe that within one year, the price you paid for the boat has almost returned. The current market is indeed good, and the price we give is also very good.”

What good!
At present, it is the peak time of shipping in the Far East. A large number of Japanese goods are waiting to be transported at the port, while many shipowners in Hong Kong are taking the risk of smuggling, and the overall market price has increased by about 2 to 3 times.The price offered by Tatsuro Yamashita was only twice as high, which is obviously because the Japanese are very shrewd.

Moreover, the prices of second-hand ships in Europe and the United States have also risen. This is what Willis told Lin Zhichao through overseas calls.

Lin Zhichao said: "Japan's economy is like clockwork now, and the goods that need to be transported are piled up in major ports. According to this situation, I consider packing the three ships and increasing the lease time to 3 to 5 years. , but the price cannot be lower than 320 million US dollars a year. President Yamashita, how about my proposal?"

Several senior executives of Yamaguchi Steam Turbine looked at each other in blank dismay. They did not expect the matter to develop like this.

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

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

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

"please"

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

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

"We can accept a three-year contract, the price can only be based on 3 million US dollars a year. If a five-year contract, the price can only be based on 300 million US dollars a year."

After finishing speaking, Tatsuro Yamashita showed confidence again, meaning that this condition is very good, so agree quickly!
Lin Zhichao has also considered that the price of freighters has increased by about 20% now, and the price of an 8600-ton second-hand cargo ship aged 20 to 25 has risen to about 55 US dollars; originally, it only cost more than 45 US dollars.

The cargo ship leased to Yamaguchi Steamship is a full 3.5 tons, and they are all sub-new ships, with nothing to say about their performance.The age of the ship also determines the price of the charter; if the price increases by 30%, the price of the three ships has risen to 215 million US dollars.

The annual rent is 300 million US dollars, and under smooth conditions, a net profit of 210 million US dollars can be obtained.Of course, there is no risk of major repairs or accidents in this, it depends on luck. (As long as it is well managed, accidents will be minimized)

Therefore, if you are lucky, you can easily earn back an old ship in a year, because when you consider buying a ship, you can only count the current ship price.

Compared with going on 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 for the first three years must be 300 million US dollars a year, and the next two years can give you 260 million a year."

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

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

"Happy cooperation, we will discuss the details and sign the contract tomorrow!" Yamashita Tatsuro stretched out his hand, and then said.

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

Because some cargo ships have a load capacity of 1 tons, but in fact they may only be able to carry seven to eight thousand tons, or even five to six thousand tons.The cabins of Liberty Wheel and Victory Wheel not only provide good protection for the cargo, but also the design of the cabins is very reasonable.

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

Lin Zhichao also stretched out his hand and said with a smile: "It's a happy cooperation."

Afterwards, Tatsuro Yamashita immediately invited everyone to have a business banquet at night, and Lin Zhichao naturally agreed.

Back at the hotel, Lin Zhichao held a meeting with his subordinates and lawyers to discuss some details of the contract, and strived for the smooth progress of the negotiation and signing tomorrow morning.

For this lease, Lin Zhichao is still very satisfied.

The three Liberty Ships and Victory Ships, whose contracts expired at the end of 1955, did not run long-term contracts after that. They waited until the Suez Incident broke out in 1956, and then sought a three-year high-priced long-term contract.

The more expensive the shipping price, the more willing the lessor is to charter and make long-term contracts; the more off-season the shipping is, the more willing the leasing fee is to short-haul.Therefore, it is actually beneficial to both parties, because mutual trust and mutual benefit have been achieved.

From 1959 to 1961, there was a small downturn in world shipping, and Lin Zhichao also happened to sell some too 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 went to the appointment with his subordinates, and still chose the geisha hall, this time it was even more luxurious.Lin Zhichao doesn't mind himself and his subordinates participating in this kind of business banquet, but he will lead by example, and finally refuses to take it away.

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 it is also necessary to ensure that you can sit still and not get lost in the sensuality.

As a boss, he always has this kind of attitude, so his subordinates will naturally follow suit. Although there are escorts, they can treat him politely and behave like a gentleman.Otherwise, it is not very good to leave a bad impression on the boss and the future just for the sake of momentary enjoyment.

The middle-level cadres of Global Shipping and Cheung Kong Industrial have monthly salaries in the range of 300-500, and the salaries of high-level cadres are in the range of 600-800, with bonuses at the end of the year.The important thing is that everyone can see that the company is developing at the speed of the naked eye, and naturally feel that they still have a lot of upward channels.

Doubly cherish work, and also learn from the boss' style - study hard, work hard, and struggle.

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

Everyone raised their wine glasses and drank the sake. The girls in kimonos on both sides, one pouring wine and the other picking up vegetables, made it easy for people to get lost in it.However, the Chinese have always been conservative and abided by Confucianism. Lin Zhichao and his subordinates were able to keep 'no chaos'. ZBism can corrupt people. In a few decades, the atmosphere of Chinese people may change.

Tatsuro Yamashita expressed his gratitude in his words, because Japan is really short of boats. Now they go to Hong Kong to rent a boat, and it is difficult to find a favorite one. It is either too small or the asking price is high.

The 3.5-ton lease agreement is also more than 10% of the company's total load capacity for Yamaguchi Steamship, which can be described as 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 the future economic trend of Japan and hope to cooperate for a long time. And I believe that this kind of operation mode of global shipping is conducive to bank loans. I can quickly expand shipowners. So, win-win cooperation!"

As soon as the words fell, Shang Dalang asked: "Lin Sheng, could it be that you will have another ship soon, to tell you the truth, we still need some capacity."

How much capacity is needed!

But it can only be said conservatively.

Lin Zhichao said with a smile: "Not necessarily! But I have already reached a cargo ship loan agreement with HSBC in Hong Kong. The two parties have a relatively good basis for mutual trust."

He didn't dare to make a promise.

When Tatsuro Yamashita heard that HSBC had given a loan to Global Shipping, he immediately knew that Global Shipping actually had a lot of ships, and he immediately felt that its strength was very strong, and it might be the existence of the few Chinese private shipowners.

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

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

The next day.

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

The rent for this kind of contract is paid once a month. It is obviously impossible for customers to pay quarterly or half a year. Others are short of foreign exchange. Only by paying rent once a month can they avoid excess foreign exchange.

In the mid-to-late 50s, Lin Zhichao would gradually consider accepting payment in Japanese yen, which would benefit both parties.

For him, the yen preserves its value, and ships can be built or repaired in Japan;
For Japanese tenants, avoid using too much foreign exchange.

After getting the long-term rental contract in Japan, Lin Zhichao returned to Hong Kong, went to the office of Sanders, and handed him the contract.

After Sandas carefully read the contract, he was a little surprised. The weight of this contract is very heavy.

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

He was surprised by the gold content of this contract. If all goes well, Lin Zhichao can rely on this contract to buy a second-hand ship with 3 to 4 times the deadweight within five years; moreover, this is not counting the loan.

It is equivalent to Lin Zhichao earning back three more ships in a year with three ships.

For the first time, Sanders looked squarely at it. He didn't expect shipping to be so profitable, and of course it didn't make him ignore the risks.

Lin Zhichao immediately said: "We have a rent of 300 million US dollars in the first year, so I want to borrow this amount."

Sanders immediately said: "It's almost impossible! If I were in the project department, it would be impossible for me to give you such a high loan amount. Although your annual rent is 300 million US dollars, don't forget that shipping is a big risk. And our bank, it is impossible to turn a blind eye."

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

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

Sandas was taken aback for a moment, he didn't understand why Lin Zhichao changed the subject, this young man's eloquence is always very good, is there any reason to convince himself?
He tentatively asked: "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 has entered an upward trend of economic development, and global battles will no longer occur. And strong ships can make decisive contributions to the world economy, because His freight is cheap and the volume of goods shipped is large. Japan’s economy is undergoing a miraculous change. They have a strong industrial foundation, and now they are supported by the United States and become a place for war material supply. According to the current situation, Japan has obtained The war order may be several times that of the Marshall Plan. I will lease the merchant ship to them, and I can earn tens of millions of dollars in profit in five years."

Hearing Lin Zhichao's continuous praise of Japan's economic prospects, Sandas was amazed. He also knew what kind of medicine Lin Zhichao was selling in his gourd. It was nothing more than to reassure HSBC that the contract in his hand was the best letter of credit.

But the loan of 300 million US dollars is basically a gamble on his own future. If he agrees to help, it means that the two of them will be completely tied together in the future.

"So, you want to gain their trust by signing a long-term contract with Japan first. Using the money earned in the Japanese market, you want to expand the shipowner." Sanders suddenly noticed Lin Zhichao's intention at this time, and asked curiously.

Although Japan will also come to Hong Kong to charter ships, after all, they are all one-way short-term charters. Lin Zhichao's long-term charter can indeed win the favor of Japanese shipping companies.

Lin Zhichao nodded, and said: "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 international arena. If there are too many enemies in shipping, they will be restricted. Hong Kong is a Free port, ships of any nationality can come in, similarly, we can also own ships of any nationality and hang the flag of any country, as long as it is beneficial to us..."

Sundas was overwhelmed 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 to be a "future ship king".

But thinking of the huge sum of 300 million U.S. dollars, he still has a headache and looks embarrassed.

Originally, he initially thought that Lin Zhichao's loan might be 100 million US dollars.But now it has tripled, which surprised him.

Lin Zhichao saw that Sandas bowed his head silently, but showed hesitation on his face, so he asked, "Aren't these reasons and conditions enough?"

Sanders made things difficult for him 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, Sanders immediately said: “Yes. Your ship is not worth 300 million US dollars, but you want to borrow 300 million US dollars. It is still a problem. Although the contract value is more, there are still risks in it.”

The bankers are all stable, and he didn't feel at ease and boldly agreed to help because of the relationship between the two of them.Because assuming he agrees to help, it is almost guaranteed, but he will also bear the risk.

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

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

Sandas'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 Sanders himself, he just wants HSBC to reduce the risk. If Lin Zhichao persuades other Chinese billionaires to guarantee or mortgage Cheung Kong, it is a "letter of credit".Now this LC is issued by the Bank of Japan, so it is more guaranteed.

At that point, HSBC is unlikely to disagree.

"A word is settled!"

"You have no jokes (hard translation)"

Sanders thinks that Lin Zhichao has little hope of success, and if he fails, he will not give up. At that time, for example, a loan of 150 million US dollars may 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 prudence of the banks and the 'fear' of shipping risk, but he has to get more bank loans.

Because if he gets a bank loan of 300 million US dollars at this time, Lin Zhichao can buy a large number of ships and put them into operation again.The money earned in a year is probably a huge number.

Shipping was the most profitable industry in the 50s and 70s, even real estate was far behind.In the late 70s in the previous life, Bao Yugang had a wealth of 60 billion Hong Kong dollars, and the wealth of the four major families could be worth one billion.For Bao Yugang at his peak, one oil tanker was equivalent to a medium-sized building in Hong Kong, and fifty oil tankers were equal to fifty medium-sized buildings.

Just ask this strength, who can match it!
(End of this chapter)