TS Lines, the Taiwanese shipping company, has been in the news lately due to its “fire-sale” of ships. In the past few months, the company has sold nine ships, with the latest three being sold in April. This is all part of TS Lines’ strategy to streamline its fleet and shed excess vessels. The company had already exited long-haul lanes after freight rates fell to pre-Covid levels.

It is interesting to note that TS Lines has only sold feeder vessels so far. These are smaller vessels that are used to transport cargo from smaller ports to larger ones. The company has seven such vessels under construction. In addition, TS Lines has ordered six 2,900 TEU ships and five 7,000 TEU ships, all of which are expected to be delivered this year and next. The feeder vessels will be used for China-Japan routes, while the 2,900 TEU ships are intended for East Asia-Australia/New Zealand services. The 7,000 TEU ships are expected to be assigned to strings connecting East Asia with India and the Persian Gulf.

The sale of these ships is a clear indication of TS Lines’ strategy to focus on specific routes and streamline its fleet accordingly. This move is expected to increase the company’s efficiency and profitability in the long run. However, it is worth noting that the shipping industry is volatile and unpredictable, and TS Lines’ strategy could be impacted by external factors such as changes in global trade policies or geopolitical tensions.

Meanwhile, commodity currencies have been beneficiaries of the softer reserve. However, the threat of a recession in the US and Europe has taken the edge off these currencies. Commodity currencies are currencies of countries that are major exporters of commodities such as oil, gold, and copper. These currencies are typically more volatile than major currencies such as the US dollar or the Euro. The softer reserve has helped boost commodity prices, which in turn has benefited commodity currencies. However, the threat of a recession in the US and Europe has dampened investor sentiment, and this has impacted commodity currencies as well.

In conclusion, TS Lines’ strategy to streamline its fleet by selling excess vessels and focusing on specific routes is a sensible move in the current economic climate. However, the shipping industry is always subject to external factors that could impact the company’s strategy. As for commodity currencies, they continue to be volatile, and the threat of a recession in the US and Europe is a cause for concern. It remains to be seen how these factors will play out in the coming months.