Evergreen profit sank 70% in Q1

Lower rates hurt results despite higher volume

(Photo: Evergreen)

Evergreen Marine Corp. saw revenue and profits plunge in the first quarter as unspecified higher container volumes were hit by weaker shipping rates.

The world’s seventh-largest liner (2603.TW) reported consolidated revenue fell more than 21% to $2.75 billion, while net profit after tax of $264 million was off 70% from the same quarter a year ago.

Global carriers have struggled with weaker rates even as container volumes post solid results, amid unbalanced capacity in the face of shipper uncertainty and higher operating costs as the Iran conflict pushes up the price of fuel.

Evergreen was hopeful that the approaching peak shipping season will boost rates and tariff issues drive shipper frontloading.

Read more articles by Stuart Chirls here.

Related coverage:

The U.S. Navy wants to build 15 nuclear-powered battleships  

Houston gains cargo share as volumes soften at West Coast ports 

Trans-Pacific ocean rates remain above pre-war levels despite muted outlook

Lower revenue, higher costs drive Hapag-Lloyd to loss 

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.