Benefiting from rising average freight rates and export cargo volumes, Evergreen Marine achieved revenue of over NT$40 billion in June, reaching NT$42.28 billion, or approximately US$1.30 billion, a 91.1% year-on-year increase, and also a 31.5% increase compared to May, with single-month revenue at a new high since November 2022.
In addition, Evergreen Marine's second-quarter revenue was NT$106.26 billion, or about US$3.27 billion, up 57.7% year-over-year and 20.0% from the first quarter, with single-quarter revenue also the highest in the last six quarters. Meanwhile, Evergreen Marine's first-half revenue was NT$194.90 billion, or about US$6.00 billion, up 45.2 per cent year-on-year.
Evergreen Marine's monthly revenue (in thousands of NTD)
As the first liner company to release June revenue figures, Evergreen Marine's performance also epitomises the trend of the container market. On the basis of positive results in the first quarter, the liner shipping company's performance in the second quarter will take another step forward, mainly due to the continuing Red Sea crisis and the continued rise in market freight rates, a trend that is expected to continue into the third quarter.
In the shareholders meeting held in late May, Evergreen Marine General Manager Wu Guanghui had said that because the market has been a shortage of boxes, causing importers in Europe and the United States to panic, replenishment of inventories in advance, so that the peak season ahead of schedule, but the European and American importers to replenish the goods will continue to when to be seen, the third quarter of the market is still very optimistic.
Wu Guanghui also emphasised that despite being more optimistic about the performance, Evergreen Marine will still focus on reducing operating costs.
However, for the market trend in the fourth quarter, there are views that freight rates are at risk of falling back.
HSBC Securities mentioned in its latest analysis report that freight rates in the fourth quarter of this year may be expected to weaken due to the market's belief that the Red Sea crisis may be lifted as a result of the armistice agreement, and that normality will be restored to the container shipping industry, while a large amount of new capacity is expected to come into operation in the second half of the year.
At present, freight rates in the container market are gradually declining after rising sharply for some time previously. According to the Shanghai Export Container Freight Index (SCFI) released by Shanghai Shipping Exchange, the SCFI was 3733.80 points on 5 July, a slight increase of 0.5% compared with a week ago, of which, the market freight rate from Shanghai port exporting to the basic port of Europe (sea freight and sea freight surcharge) was USD4857/TEU, a 0.5% drop compared with a week ago, which is also the freight rate of European routes after continuous rise This is also the first time that freight rates on European routes have dropped after consecutive increases.
According to Alphaliner's statistics, the new capacity in the global container market this year is about 3.09 million TEU, of which 1.3 million to 1.6 million TEU will be delivered in the second half of the year. After these new capacity is put into the market, it is expected to alleviate the oversupply of capacity caused by the Red Sea crisis. After the traditional peak season in the third quarter, the market demand for freight transport may turn weak, and then the situation of supply exceeding demand may occur again, and the freight rate will fall back as a result.
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