Yang Ming Marine ship catches fire in container explosion in Ningbo

Taipei, Aug. 10 (CNA) A vessel owned by Taiwan's cargo container shipping company Yang Ming Marine Transport Corp. caught fire after an explosion occurred in a container on board while the ship was at the busy Ningbo port in eastern China on Friday.

In a statement, Yang Ming Marine confirmed the incident and cited a preliminary investigation as saying the explosion occurred in a container on its vessel YM Mobility, which reportedly arrived in Ningbo early Friday morning after last calling in Shanghai.

"Immediate fire control measures were taken, and the situation is now under control," Yang Ming Marine said in the statement. "All crew members have safely evacuated."

The shipper said the container was loaded with hazardous materials. The owner of the goods owner had declared that the container was a reefer used as a substitute for a dry container, that did not need plugged-in electricity.

Yang Ming Marine said Huan Ming (Shanghai) International Shipping Agency Co., Ltd., a subsidiary of Yang Ming Group, has been actively working with the authorities to manage the situation.

The shipper said the cause of the explosion is still under investigation.

Yang Ming Marine said YM Mobility is currently assigned to service the route between the Far East and the Middle East.

It added that after the incident, the shipper will provide updates on the vessel's status, cargo transshipment, and schedule adjustments when further information becomes available.

According to Chinese media reports, the explosion occurred around 1:40 p.m. Friday with shockwaves felt a kilometer away, when YM Mobility was docked at the port's Beilun terminal.

China Central Television (CCTV) cited authorities as saying the container was loaded with materials vulnerable to explosions such as lithium batteries and parabens, and that it could take three months to repair the vessel.

CCTV said after docking at Ningbo, YM Mobility, equipped with 20 crew members, was previously scheduled to head to Jakarta, Indonesia.

Chinese news media reported YM Mobility, built in 2011, is a Liberian flag vessel with a capacity to transport 6,600 twenty-foot equivalent unit (TEU) containers. TEU is a standard measurement of a cargo ship's capacity.

The reports said the explosion was caused by overheating, adding that the exploded container belonged to South Korea-based logistics and shipping operators HMM Co.

Meanwhile, Yang Ming Marine on Friday reported it posted NT$25.46 billion (US$785 million) in consolidated sales, up 22.87 percent from a month earlier and also up 122.23 percent from a year earlier.

It cited a hike in freight rates amid tight suppliers in capacities in the global shipping market, due to factors such as port congestion and peak season effects.

In the first seven months of this year, Yang Ming Marine generated NT$121.85 billion in consolidated sales, up 46 percent from a year earlier.

Its business competitors also reported sales growth in July on higher freight rates.

Evergreen Marine Corp., the largest container shipping company in Taiwan, posted NT$54.40 billion in consolidated sales in July, up 28.43 percent from a month earlier and up 132.23 percent from a year earlier.

In the first seven months of this year, Evergreen Marine's consolidated sales totaled NT$249.36 billion, up 58.19 percent from a year earlier.

For its part, Wan Hai Lines Ltd., another container shipper, generated NT$20.11 billion in consolidated sales in July, up 21.13 percent from a month earlier and up 144.17 percent from a year earlier.

In the first seven months of the year, Wan Hai Lines posted NT$85.89 billion in consolidated sales, up 47.41 precent from a year earlier.