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Supply Chain Overview
Yang Ming's supplier management covers quality, environmental protection, information security, occupational safety and health, supply chain safety, and the regulatory requirements of port states. While transporting the cargo of customers, we also pay attention to the issues of stakeholders’ concern, thereby fulfilling corporate social responsibilities together with suppliers from different sectors.
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Midstream
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Downstream
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Shipbuilding companies
Ship construction
Ship chartering companies
Ship chartering
Container manufacturers
Container manufacturing
Container leasing companies
Container leasing
Fuels
Used by vessels to sail
Materials
Supplies required for vessel operation, container use, or maintenance
Alliance partners
Shipping business
Port operators
Port operation
Port agencies
Handling matters for vessels in ports
Stevedoring companies
Container stevedoring
Railway companies
Offering inland container transport services
Trailer companies
Offering inland container transport services
Feeders
Offering container transport services for branch lines
Insurers
Offering hull insurance, war insurance, and carrier liability insurance
Vessel, container, and machinery repair services
Providing vessel, container, machinery, and equipment repair services to ensure vessels’ seaworthiness and smooth operation
Technical consulting service providers
Providing consulting services related to technical specifications, navigation and transportation safety or operations
Port agencies
Handling matters for vessels in ports
Stevedoring companies
Container stevedoring
Ship Recyclers
Vessel recycling
General services
Security or cleaning services
Logistics
Offering product distribution, product planning, management, procurement, storage, distribution processing, temporary storage, and delivery services during the process of delivering goods or products from manufacturers to retailers or users
General affairs
Procurement of computer software and hardware, office supplies, equipment, consumables and construction materials required for operations
Annual Procurement Analysis
Yang Ming Marine Transport Corp. classifies and grades suppliers based on annual procurement amounts. In 2025, a total of 2,552 Tier-1 suppliers provided products or services to Yang Ming. Based on procurement items and service characteristics, suppliers are classified into eight major categories: General Affairs and Services, Professional Services, Marine Fuel, Vessels, Safe Operation of Vessels, Container/Chassis/Genset, Container Yard Machinery, and Shipping-related Services. Materiality thresholds were established for each category based on characteristics such as the proportion of total procurement amount and exclusivity or irreplaceability, identifying a total of 162 critical Tier-1 suppliers, which account for 79.02% of the total procurement amount. In the future, the Company will utilize supplier grading and classification to strengthen supplier management measures and enhance its oversight of suppliers' sustainability-related risks and performance.
| 8 Procurement Types | Definition of Tier 1 Suppliers | Significance to Yang Ming |
|---|---|---|
| General affairs and services | Accounting for over 2% of total procurement amounts | The basic general supplies necessary for corporate operations to maintain the basic operational efficiency and work quality of the Company. |
| Professional services | Accounting for over 1% of total procurement amounts | Provide professional services to enhance transportation safety, operational efficiency, and service quality, supporting business operations while strengthening personnel, vessels, and cargo safety |
| Marine fuel | Accounting for over 1% of total procurement amounts | The stability of fuel supply and quality is tied to the daily operation of vessels. Also, such procurement constitutes a main part of the Company's operating costs. |
| Vessels | Accounting for over 1% of total procurement amounts | Vessels are the backbone of the Company's international container shipping services. Their construction, chartering or other uses/ deployment have direct and significant impacts on the operation of routes. |
| Safe operation of vessels | Accounting for over 1% of total procurement amounts | The Company prioritizes Personnel Safety, Vessel Safety, and Cargo Safety. Therefore, vessel equipment installation and maintenance, spare parts supply and inspection, material supply and quality requirements, and dry-docking repairs are all critical keys to ensuring maritime safety. |
| Container/Chassis/ Genset | Accounting for over 1% of total procurement amounts | Under existing vessel capacity, maintaining stable backup container quantities, chassis, and gensets to meet customer transportation needs is an important capital expenditure item for the Company |
| Container yard machinery | Accounting for over 1% of total procurement amounts | Container yard equipment is an important capital expenditure item for the Company to maintain the safety and efficiency of transportation services. |
| Shipping-related services | Accounting for over 0.4% of total procurement amounts | Terminal loading and unloading, yard storage, feeder vessel connections, and inland truck and rail connections form a global maritime transportation service network. The Company ensures accurate connection of all transportation links and 24-hour uninterrupted operations to provide customers with punctual, speedy, reliable, and economical global maritime services. |
Proportion of 8 Types of Procurement Expenditure
| 8 Procurement Type | Number of Suppliers | Procurement Amount % in Total Procurement Expenditure | Number of Tier 1 Suppliers | Proportion of Procurement Amount from Tier 1 Suppliers by Procurement Type | Number of Tier 1 Suppliers % by Procurement Type |
|---|---|---|---|---|---|
| General affairs and services | 264 | 0.14% | 6 | 43.83% | 2.27% |
| Professional services | 277 | 1.43% | 13 | 67.14% | 4.69% |
| Marine fuel | 32 | 15.74% | 20 | 98.25% | 62.50% |
| Vessels | 18 | 23.51% | 9 | 92.99% | 50.00% |
| Safe operation of vessels | 195 | 2.99% | 41 | 79.62% | 21.03% |
| Container / Chassis / Genset | 26 | 6.78% | 14 | 98.79% | 53.85% |
| Sipping-related services | 1,723 | 49.36% | 52 | 63.92% | 3.02% |
| Container yard machinery | 17 | 0.05% | 7 | 98.57% | 41.18% |
| Total | 2,552 | 100% | 162 | 79.02% | 6.35% |
Local Procurement
Except for specific procurement operations limited by the special business nature of the shipping industry, the Company creates cooperation opportunities with Taiwan suppliers in various procurement cases as much as possible to promote Taiwan's industrial development and maintain relationships with local communities. In 2025, the Company's local procurement expenditure in Taiwan accounted for 3.65% of total procurement expenditure.
| 8 Procurement Types | Number of Local Suppliers | Local Procurement Amount % from Local Tier 1 Suppliers by Procurement Type |
|---|---|---|
| General affairs and services | 263 | 44.02% |
| Professional services | 206 | 38.24% |
| Safe operation of vessels | 85 | 60.48% |
| Shipping -related services | 76 | 71.53% |
| Container yard machinery | 17 | 98.57% |
Green Procurement
Aligned with the government policies, Yang Ming uses products with green marks, introduces green procurement and green concepts in order to fulfill the purposes of energy saving, emissions reduction and reduction in operating costs. The Company raises the amount of green procurement year on year to play its part in environmental protection.
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Sustainable Supply Chain Management Policy
Yang Ming has introduced "ISO 9001 International Quality Management System Certification" and formulated and revised various operational procedures, including evaluation and procurement procedures for vessels, accessories, materials, fuel, container equipment, terminals, rail and road transportation, and undergoes third-party external auditing annually. The Supply Chain Management Policy established by the Company commits to building supplier management mechanisms and requires suppliers to not only maintain their quality and cost, but also align with Yang Ming's sustainable business thinking in "Business Ethics and Integrity Management," "Environmental Protection," "Labor Rights and Occupational Health and Safety," and "Information Security." Yang Ming will continue to communicate with all supply chain partners to jointly promote sustainable development of the supply chain.
Supplier Code of Conduct
The Company regularly reviews and revises Yang Ming Marine Transport Corp.'s Supplier Code of Conduct based on international organizational regulations and recognized standards such as the UN Global Compact, Ethical Trading Initiative, OECD, ISO 45001, ISO 27001, ISO 14001, Universal Declaration of Human Rights, International Labour Organization, and Responsible Business Alliance. This code includes 5 major parts: Human Rights and Labor, Occupational Safety and Health, Environment, Business Ethics and Integrity Management, and Management Systems, reflecting the Company's recognition of global sustainability issues and commitment to following relevant standards, and expecting suppliers to comply together, encouraging suppliers to actively cooperate and continuously improve sustainability-related performance.
| Human Rights and Workers | The Company is devoted to creating and maintaining a good working environment where employees are treated reasonably and with respect. The Company’s suppliers are requested to adopt the same or similar standards in their working environments to ensure that the human rights of their employees are not affected and infringed. Content includes labor rights, free employment, working hours management, salary and benefits, employee privacy, fair treatment and anti discrimination, assembly, freedom of association and collective bargaining rights, and prohibition of child labor. |
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| Occupational safety and health | The Company values employee safety and health, enhances employee safety and health awareness, establishes a safe working environment, and avoids occupational injuries. Content includes occupational safety, emergency preparedness, occupational injuries and diseases, industrial hygiene, physical labor work, machine protection, environmental hygiene, health and safety communication. |
| Environment | Suppliers should consider environmental factors and conduct improvement and maintenance for impact factors in the course of operations to reduce environmental burdens and impacts. Content includes environmental permits and compliance requirements, energy consumption and greenhouse gas emission management, waste and wastewater management, hazardous substance management, noise management and air pollution management, biodiversity and forest conservation. |
| Business Ethics and Ethical Management | Suppliers should observe the highest moral standards in the course of operations, expand relevant business activities, and develop relevant policies for internal propaganda to enhance their employees’ understanding of corporate ethical management policies. Content includes integrity management, prohibition of improper benefits, information disclosure, respect for intellectual property rights, fair trading, identity protection and prohibition of retaliation, responsible supply chain, information security and privacy rights, avoiding conflicts of interest, whistleblowing system. |
| Management Systems | Suppliers should establish management standards that comply with relevant regulations and the requirements of this code, and promote continuous improvement of the requirements listed in this code. Content includes corporate commitment, legal and code requirements, risk assessment and management, education and training and communication, auditing and evaluation. |
Supply Chain Management Strategy
Yang Ming Marine Transport Corp. aims to establish a comprehensive and sustainable supply chain management system, planning three key results: "Improving procurement systems with sustainability factors," "Effectively understanding supplier sustainability management maturity, performance, and continuous tracking," and "Supplier sustainability engagement." Each year, action plans are reviewed and updated on a rolling basis with targets set. The table below shows the action plans and short-term and medium-to-long-term goals for each key result.
| Key Outcome | Action Plan | Target by 2025 | 2025 Achievement Status | Target by 2026 | Target by 2030 |
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| A sound procurement system with sustainability factors | Complete the revision of internal procurement procedure manuals. | Completed announcement and implementation | Completed announcement and implementation | Continuously revise procurement management-related regulations to reflect sustainability issues or identified sustainability risks | Continuously revise procurement management-related regulations to reflect sustainability issues or identified sustainability risks |
| Effective control of suppliers' sustainable management maturity, performance and ongoing tracking | Supplier written audits and on-site visits | Critical Tier-1 supplier sustainability self-assessment questionnaire review ratio reaches 90% | All completed questionnaires underwent review, ratio 100% |
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| All new suppliers sign a "Company Sustainability Statement Survey" | 100% signing ratio | 100% signing ratio | Maintain a signing rate of 100% | Maintain a signing rate of 100% | |
| Sustainable engagement with suppliers | Strengthening Communication with Suppliers |
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Labor Standards
Suppliers ought to uphold the human rights and fair treatment of workers, including all workers (temporary worker, casual worker, contract employee and other forms of labor). Use of child labor or any is crimination is prohibited. Suppliers are to comply with all the employment laws and regulations at where they operate.
Occupational Health and Safety Standards
Suppliers are to continuously provide safe and heathy work environment and occupational safety education and trainings, while working to minimize occupational injuries.
Environmental Standards
Suppliers are to comply with relevant environmental regulatory requirements in the region and mitigate impacts to the environment.
Standards of Ethics
Suppliers and their downstream suppliers ought to adhere to the principles of ethics and integrity and are forbidden to offer, promise, give or accept bribes or other forms of ill-gotten gains.
Management System Standards
Suppliers are to enforce management systems to promote compliance with relevant laws and continuously make improvement on the requirements of standards.
Supply Chain Management Process
Sustainability Risk Evaluation
The Company plans to conduct annual ESG reviews for critical Tier-1 suppliers. In 2025, 173 critical Tier-1 suppliers were identified based on 2024 full-year procurement data. These suppliers were invited to complete a Sustainability Self-Assessment Questionnaire (SAQ) to evaluate their sustainability performance. To objectively determine supplier sustainability performance and enhance evaluation precision and appropriateness, the Company designed and distributed different types of SAQs in 2025 based on procurement category and actual transaction scale/amount: the "Eight Major Categories Sustainability SAQ" and the "Simplified Supplier Sustainability SAQ". A total of 121 questionnaires were recovered, with a response rate of 69.94%, an increase compared to 62.26% the previous year.
To strengthen the sustainability awareness of procurement personnel, Yang Ming Marine Transport held an in-person education and training session in 2025. The training covered the contents of the supplier SAQ, review processes, and methodology, aimed at enhancing procurement staff's understanding of SAQs and sustainable supply chain management. A total of 51 personnel from 12 procurement departments participated.
Supplier Engagement
To strengthen sustainability engagement with different categories of suppliers, Yang Ming Marine Transport selected five critical Tier-1 suppliers for on-site inspections or written follow-ups based on annual questionnaire analysis. During on-site visits, current non-compliant items and potential directions for future improvement are discussed, and existing management practices from benchmarking cases are shared. During written follow-ups, relevant reference documents and improvement suggestions are provided to help suppliers continuously refine their sustainability management and enhance overall performance. Feedback from some suppliers in 2025 indicates that they have begun implementing plans based on these suggestions, including strengthening environmental management, planning the establishment of employee personal data and privacy management systems, and committing to prioritizing worker health and safety.
| Year | On-site Visit Numbers | Supplier Categories |
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| 2023 | 5 | Safe operation of vessels (4 companies), Container yard machinery (1 company) |
| 2024 | 5 | Safe operation of vessels (3 companies), Container yard machinery (1 company), Professional services (1 company) |
| 2025 | 5 | Safe operation of vessels (2), Container yard machinery (1), Professional Services (1), General Affairs and Services (1) |
The Company also holds supplier seminars, collaborating with external consultants to share international sustainable supply chain trends and forward-looking shipping industry topics at meetings, providing supplier partners with case references for management measures on sustainability issues. The 2025 seminar will be held in Chinese and English sessions each, with a total of 76 domestic and international key suppliers participating. Through this seminar, Yang Ming Marine Transport Corp. conveys to supplier partners the belief of " From supply to shared success, embark on a new sustainable voyage with Yang Ming."