Evergreen Marine Corp, the renowned Taiwanese carrier, has reported a notable resurgence in its revenues for the second consecutive month, signaling a potential rebound for the global shipping industry. The company’s August performance revealed its highest revenue figure since January, marking a significant milestone for the Taipei-based carrier.
In August, Evergreen generated a staggering TWD 24.9 billion in revenue, reflecting a robust 6% increase compared to the previous month of July. This positive trend in revenue growth has been consistent, as July also demonstrated an uptick following a rise in June.
Evergreen’s counterparts in the Taiwanese shipping sector, Yang Ming and Wan Hai Lines, also experienced an upturn in their financial performance during the same period. Yang Ming reported revenues of TWD 12.2 billion, while Wan Hai Lines reached TWD 8.6 billion.
However, despite these recent improvements, it’s important to note that Evergreen and its fellow carriers still face substantial challenges. The revenues of Evergreen, Yang Ming, and Wan Hai Lines remain significantly lower than the same period in 2022, with year-on-year declines of 61% and 67% respectively in the first eight months of this year.
The reshaping of the shipping landscape can be attributed to various factors, one of which is the ongoing impact of the COVID-19 pandemic. For instance, Wan Hai Lines has strategically redirected its focus to the traditional intra-Asia market, significantly reducing its reliance on US-related business. In the first half of 2023, only 16% of Wan Hai Lines’ revenue was generated from US-related operations, a substantial drop from the 45% reported a year earlier. In contrast, the carrier’s intra-Asia business has surged from 26% to 48%, showcasing the changing dynamics in global trade patterns.
Remarkably, Wan Hai Lines, along with ZIM, emerged as one of the few carriers to report an operating loss (EBIT) in the last quarter, highlighting the persistent challenges in the industry.
As the global shipping sector continues to adapt to the ever-evolving market conditions, the recent upturn in revenues at Evergreen and its Taiwanese peers offers a glimmer of hope for an industry that has been grappling with immense challenges over the past year. These positive revenue trends may signal a gradual recovery for the maritime transport sector, provided that global economic conditions remain stable and the ongoing impact of the pandemic can be effectively managed.
Source: Alphaliner, Evergreen