Taiwanese shipping giant Evergreen Marine has delivered staggering financial results, with quarterly revenue surpassing NT$100 billion (approximately $3.6 billion) for the first time. This remarkable performance comes as container shipping rates continue to hover near historic highs, fueling unprecedented profitability across the maritime transport sector.
Evergreen's Q3 Performance: Breaking All Records
September saw Evergreen post consolidated revenue of NT$49.131 billion ($1.76 billion), representing a staggering 153.84% year-over-year increase. While slightly lower than August's figures due to fewer working days and port congestion delays, it still marked the second-highest monthly revenue in company history.
The third quarter total reached NT$145.01 billion ($5.2 billion), a 45% increase over the previous quarter and the first time crossing the NT$100 billion threshold. Cumulative revenue for the first three quarters of 2021 stands at NT$334.95 billion ($12 billion), up 134.72% from the same period last year.
New Mega-Ships Boost Capacity
Industry analysts attribute part of this growth to Evergreen's deployment of its new 24,000 TEU ultra-large container ships. The "Ever Ace," the first in this class, completed its maiden Europe route, while its sister ship "Ever Act" joined the Europe service in September and will contribute full-month capacity in October.
The company further bolstered revenue by implementing a General Rate Increase (GRI) surcharge in October, reflecting continued strong demand across shipping routes.
Shipping Rates Remain Elevated
Contrary to market rumors about declining rates, the Shanghai Containerized Freight Index (SCFI) actually rose 0.72% to 4,647.6 points after China's National Day holiday. While rates for the Far East-West Coast North America route dipped slightly to $11,114 per FEU (forty-foot equivalent unit), other major routes saw modest increases.
This data confirms that global container shipping prices continue to fluctuate at historically high levels, showing no signs of significant cooling.
Outlook: Strong Demand Expected to Continue
With persistent port congestion, equipment shortages, and robust shipping demand, industry experts anticipate rates will remain elevated. Evergreen's fourth-quarter revenue may defy seasonal trends and potentially match Q3 performance.
Looking ahead to 2022, three key factors suggest Evergreen may maintain strong performance:
- Inventory Replenishment Needs: Continued restocking demand in Western markets and low container turnover rates should support freight prices through at least the first half of 2022.
- New Capacity Deployment: Six additional 24,000 TEU vessels will enter service in 2022, adding 11% capacity to Evergreen's most profitable Europe routes.
- Route Optimization: Increased focus on European routes and long-term contracts provide revenue stability against market volatility.
Evergreen's record results mirror the unprecedented boom in global container shipping. While market uncertainties remain, the company's strategic capacity expansion, route optimization, and contract protections position it well for continued industry leadership. However, with historically high rates unlikely to persist indefinitely, shipping firms must prepare for eventual market normalization.