Evergreen Marine Corporation
Contact info
-
166, Mingsheng East Road
Section 2
Taipei
104
Zhongshan District
Taiwan
Tel: +886-02-25057766
Fax: +886-02-25055256
www.evergreen-marine.com
Senior Management
| Chairman | Chang Yung-Fa |
| Deputy General Manager - Shipping | Jinxiong Chen |
| Chief Financial Officer | Kuang-Hui Wu |
Ownership
Brief Profile
Evergreen Marine Corporation (Taiwan) is a global container shipper that operates throughout Asia, the Middle East, Europe, the Americas, Australia, Africa and the Mediterranean. In terms of the size of its fleet and its cargo loading capacity, Evergreen Marine ranks among the world's leading shipping companies.
On May 1, 2007, Evergreen Marine Corporation (Taiwan), Hatsu Marine, Italia Marittima S.p.A. and Evergreen Marine (Hong Kong) signed a joint service agreement and adopted the common trade name of Evergreen Line. A fifth carrier, Evergreen Marine (Singapore) subsequently joined on May 1, 2009.
Its holding group, Evergreen Group, also has interests in air transportation and air cargo services.
In 2010, its revenues were NT$109.4bn.
Strategy
Short term
Evergreen Marine Corporation will continue to closely monitor market trends to see if it can exploit opportunities to increase its freight rates.
The fleet will be temporarily expanded by chartered vessels to meet high demand before the delivery of new vessels in 2012. In 2010, Evergreen chartered 69 vessels.
Long term
The Evergreen Group plans to spend more than US$5bn on the construction of new container vessels. Over the coming years, Evergreen intends to expand its own fleet by 100 ships, adding to the 81 ships that it currently owns.
© 2011 Transport Intelligence
Evergreen Marine Corporation entered into strategic alliances with its shipping counterparts through slot charters, slot exchanges and joint services. This provided access to extensive service networks and helped improve operational performance.
Evergreen also cancelled all round the world services and replaced them with pendulum services.
Evergreen continued to develop its feeder and inland transportation networks to provide links to provide a more extensive service network.
Investment in technology such as cargo tracking strengthened its competitiveness. Evergreen planned to have the latest technologies to put it at a competetive advantage.
© 2010 Transport Intelligence
Finances
2010
Evergreen Marine Corporation recorded revenues of NT$109.4bn in 2010, a year on year increase of 33.5%. Operating profit climbed to NT$12.7bn, up from minus NT$12.3bn.
Operating profit increased by as much as revenue. Revenue grew by NT$27.4bn, and operating profit rose by NT$25.0bn.
The improved financial performance can be attributed to the rebound of the global economy in 2010. The demand for global container services exceeded supply, allowing freight rates to rise. Evergreen also attempted to satisfy the increased demand for container services by chartering vessels.
2009
Evergreen Marine Corporations's revenue for 2009 was NT$81.9bn. Its operating profit was NT$12.3bn.
Note: The financial figures reported concern Evergreen Marine Corporation and its subsidiaries, not the single entity Evergreen Marine Corporation (Taiwan).
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| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |||
| Revenues | 60470.00 m | 54430.00 m | 67960.00 m | 106940.00 m | 130490.00 m | 140736.86 m | 150076.75 m | 144924.45 m | 129002.26 m | 81936.31 m | 109353.18 m | ||
| Operating Profit | 4490.00 m | 3120.00 m | 1770.00 m | 5010.00 m | 12290.00 m | 12749.67 m | -3552.84 m | 10322.43 m | 2829.46 m | -12272.34 m | 12718.70 m | ||
| Operating Margin | 7.43 % | 5.73 % | 2.60 % | 4.68 % | 9.42 % | 9.06 % | -2.37 % | 7.12 % | 2.19 % | -14.98 % | 11.63 % | ||
| Export to Excel Source: Evergreen Marine Corporation, Last update: 24/10/2011 | |||||||||||||
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| Source: Evergreen Marine Corporation |
2010
Marine Freight revenue increased by 35.6% to NT$104.68bn. This illustrated the growth in demand for container shipping in 2010.
All other segments were relatively insignificant compared to Marine Freight. In sum, they represented less than 5% of total revenue in 2010.
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| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |||
| Marine Freight | 123455.89 m | 128862.29 m | 133285.31 m | 121033.12 m | 77147.30 m | 104680.81 m | ||
| Agency Service & Commission | 118.97 m | 116.96 m | 109.41 m | 3234.83 m | 1664.12 m | 1767.41 m | ||
| Container Manufacturing | 2098.75 m | 1833.14 m | 2338.46 m | 1441.97 m | 9.99 m | 261.95 m | ||
| Ship Rental | 13788.75 m | 17990.17 m | 7234.90 m | 1565.20 m | 1048.86 m | 660.25 m | ||
| Others | 1274.50 m | 1274.20 m | 1956.37 m | 1727.13 m | 2066.03 m | 1982.75 m | ||
| Export to Excel Source: Evergreen Marine Corporation , Last update: 24/10/2011 | ||||||||
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| Source: Evergreen Marine Corporation |
2010
The Americas was the largest segment, generating NT$54.8bn. Europe was the second largest, accruing NT$36.5bn. The China Domestic segment came next, earning NT$36.5bn. The rest of Asia and Others revenue was very small relative to all other segments, with the figures being NT$1.0bn and NT$0.4bn respectively.
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|---|---|---|---|
| 2010 | |||
| Domestic | 16586.24 m | ||
| Americas | 54788.87 m | ||
| Europe | 36523.46 m | ||
| Asia | 1041.56 m | ||
| Others | 413.05 m | ||
| Export to Excel Source: Evergreen Marine Corporation, Last update: 24/10/2011 | |||
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| Source: Evergreen Marine Corporation |
Total
2008
Evergreen's revenue for 2008 was NT$129.0bn. Its operating profit was NT$2.8bn.
2007
Evergreen Marine Corporation reported revenues of NT$144.9bn and an operating profit of NT$10.3bn.
2006
Evergreen Marine reported revenues of NT$150.1bn. This represents an increase of 6.6% from NT$140.7bn in 2005.
However, despite increasing revenues, the company closed the year operating at a loss of NT$3.6bn compared to a profit of NT$12.7bn in 2005.
Operations
| Overview | ||||
| Fleet size | 180 ships | |||
| Fleet capacity | 650,000 TEUs | |||
| Service locations |
240 |
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| Countries operated in |
95 |
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| Source: Evergreen Marine Corporation | ||||
Far East-North America and Far East-Central America and the Caribbean
Evergeen's busiest trade route is that between the Far East and North America. There are seven separate services linking the Far East with the East and West Coasts of North America.
Routes include calls in Taiwan, Hong Kong, China, South Korea and Japan.
The company transports containers from the West Coast ports of North America to cities on the East and Gulf Coasts as well as inland cities using double stack train services.
Direct services from the Far East to the East Coast of North America all run through the Panama Canal.
There is also a direct service from the Far East to the Caribbean, which uses the Colon Container Terminal in Panama for transshipment.
Far East-North Europe and Far East-Mediterranean
Evergreen offers two sailings a week between North Europe and all principal Asian ports.
It also provides a weekly service from Asia to the Mediterranean.
In addition, feeder options connect secondary ports throughout Europe, the Eastern Mediterranean, China and South East Asia with primary Evergreen routes.
A service also links the Indian sub-continent to Europe and the East Coast of North America.
Europe-North American East Coast, Atlantic fixed-day service.
Evergreen offers a fixed day service between Europe and the East Coast of North America.
Far East-Australia, and Far East-Mauritius, South Africa and South America
In the Southern Hemisphere, Evergreen offers service routes between the Far East and Mauritius, South Africa, and across the South Atlantic to South America.
It also operates a route between the Far East and Australia.
Feeder vessels and other vessels belonging to Evergreen's alliance partners provide links to ports in India, Pakistan, and Bangladesh.
Intra-Asia, Asia-Middle East and Asia India sub-continent
Evergreen offers a complete range of services linking ports in Asia and to the Middle East, Persian Gulf and the Red Sea.
This is in response to growing trade between these countries and increasing demands for more frequent services with greater capacity and wider port coverage.
© 2011 Transport Intelligence| European Routes | ||||
| Europe-Asia | 9 routes | |||
| Europe-North America | 1 route | |||
| Mediterranean Feeder Service | 8 routes | |||
| Intra Europe Feeder Service | 9 routes | |||
| Source: Evergreen Marine Corporation | ||||
| European Routes | |||
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| Source: Evergreen Marine Corporation | |||
| Asian Routes | ||||
| Asia-Australia | 4 routes | |||
| Asia-Europe | 9 routes | |||
| Asia-North America | 11 routes | |||
| Asia-Africa | 3 routes | |||
| Asia-South America | 2 routes | |||
| Intra-Asia | 56 routes | |||
| Source: Evergreen Marine Corporation | ||||
| Asian Routes | |||
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| Source: Evergreen Marine Corporation | |||
| Americas Routes | ||||
| North America-Asia | 11 routes | |||
| North America- Europe | 1 route | |||
| Caribbean Feeder Service | 5 routes | |||
| Central America-South America | 1 route | |||
| South America- Asia | 2 routes | |||
| Source: Evergreen Marine Corporation | ||||
| Americas Route Map | |||
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| Source: Evergreen Marine Corporation | |||
Taichung Container Terminal
Taichung Container Terminal acts as a transit hub connecting major ports such as Tokyo, Osaka, Pusan, Hong Kong, Singapore, Port Kelang, Bangkok and Jakarta, as well as the many other ports served by Evergreen's intra-Asia services.
Evergreen also runs some of its local import and export traffic through the terminal. The terminal is 570 m in length and 14 m deep.
Kaohsiung Container Terminal
Evergreen operates from six berths at the Port of Kaohsiung. These facilities have an annual capacity of 2m TEUs.
Its three newest berths have a total length of 815 m and a combined space of 400,000 sq m, and can serve three container ships simultaneously.
The stacking capacity is sufficient for 20,000 TEUs of dry containers as well as 5,500 TEUs of empty containers and there are 824 reefer plugs.
Eight post Panamax ship to shore gantry cranes operate on the terminal, supported by 24 rail mounted yard gantry cranes and three empty container stackers.
In 2007, Evergreen extended its lease on the three newest berths for a further 11 years, until 2018.
Colon Container Terminal
Located at Coco Solo, Republic of Panama, Colon Container Terminal is in an ideal location for transshipment linking Pacific trades, Atlantic trades and North-South trades.
It is capable of serving two Panamax vessels simultaneously, and has an annual capacity of approximately 400,000 TEUs.
It also has 612 m of quay with a depth of 14 m and covers 25 ha.
Its berth is 370 m in length and is equipped with three shore cranes together with a 12 ha container yard equipped with eight rubber tyred gantry cranes.
Taranto Container Terminal
Situated in Southern Italy, Taranto Container Terminal is linked directly to the Italian rail network allowing block trains to be operated to and from industrial areas in Northern Italy.
It is also served by a feeder network that connects other Italian ports, the West and East Mediterranean, the Adriatic Sea and the Black Sea also serves the terminal.
It operates a 1,500 m quay which is equipped with 8 post Panamax ship to shore cranes and 24 rail-mounted container stacking cranes.
The berths offer a depth of 15 m, sufficient for the largest vessels currently operating.
The operating capacity of the Taranto Container Terminal will reach 2m TEUs per year in the near future.
© 2011 Transport Intelligence2011
Trans-Pacific trade
April - Operations began on the WSA service, providing a new link from the Far East to the West Coast of South America. Evergreen Line, COSCO Container Lines, Pacific International Lines, and Wan Hai Lines all have vessels on the route.
Far East-Europe trade
March - Evergreen Line, China Shipping Container Lines (CSCL) and Zim Integrated Shipping Services (ZIM) announced the joint weekly Asia-Europe service. The service was dubbed as CES2 by Evergreen and AEX2 by CSCL and ZIM.
The new service adds the ports of Xiamen in South China and Antwerp in Belgium.
The three carriers together will deploy nine ships with capacities of between 8,000 TEUs and 8,500 TEUs. Evergreen will supply five 8,000 TEUs vessels. One 8,000 TEUs and two 8,500 TEUs vessels will come from ZIM fleet and one 8,000 TEUs from CSCL.
Intra-Asia trade
October - The HBI (Hua Bei-Hong Kong-Indonesia service) was reorganised into two feeder loops.
The Hua Bei-Hong Kong service (HBH) and the Tanjung Pelepas-Indonesia service (PIS) will fully cover the scope of the previous HBI route.
July - The KCS service was launched, providing a new trade route from Taiwan to the Phillipines. One 950 TEUs ship operates the route.
April - The TMT service commenced operations, providing a weekly link between Taiwan and Madras, India. Evergreen, Wan Hai Lines and Interasia lines all operate on the route.
March - Evergreen Line launched a weekly Thailand-Malaysia-Indonesia service (TMI), replacing the IS1 service.
The inauguration of the TMI service was in line with the increased demand from domestic markets in Thailand, Malaysia, and Indonesia.
One ship of 900 TEUs and one ship of 820 TEUs are deployed on the route.
March - The new JTS (Japan-Taiwan-South China Sea) service began. Three ships of 900 TEUs operate on the route.
East Africa trade
August - With partner Mitsui OSK Lines, Evergreen Marine Corporation formed a new route linking Asia to South East Africa.
The MZX (Mozambique Zuid Africa Express Service) route is operated by five ships, and includes stops in Malaysia, Singapore, Mauritius, South Africa, and Mozambique.
April - Evergreen Line, Wan Hai Lines, Mitsui OSK Lines and Seacon started the AEF weekly joint service going from Asia to East Africa.
The AEF service has six ships on it with capacities of between 1,200 TEUs and 1,350 TEUs. Evergreen and Wan Hai Lines supply two vessels each and Mitsui OSK Lines and Seacon supply one each.2010
Trans-Pacific trade
May - Evergreen Marine Corporation and CSCL started the CPS-2 service, offering links from Qingdao, Shanghai, and Ningbo in China to Oakland and Los Angeles on the West Coast of the USA.
May - The UAM Pendulum service was launched to replace the PNW loop, which had been jointly operated by China Shipping Container Lines. The operating capacity of the route was doubled to 5,400 TEUs.
April - Capacity on the TPS loop was increased from 4,200 TEUs to 6,300 TEUs. The larger vessels being used on the route improved competetiveness by reducing the slot cost.
Far East-Europe trade
June - Two ships of 8,468 TEUs were chartered to participate in the AEX-7 service, which was jointly operated by CMA CGM and China Shipping Container Lines.
The service network was improved in Central and Southern China, and a direct link to the main European transshipment hub in Zeebrugge was established.
January - The transshipment network in the Mediterranean basin was altered.
The original ADL (Adriatic Levant) feeder service was split into two loops. The
new pattern shortened transit time but also expanded the coverage to Ravenna and Beirut.
The original GTS (Greece and Turkey) feeder service was split into two loops. The
new service was stretched to Ashdod and Alexandria.
The NAF (North Africa) feeder service was extended to Benghazi in Libya. It is now a weekly service.
Far East-South Africa/ East Coast of South America trade
May - The ESA service was amended into two loops. Transit times were shortened.
The FAX service was restored to serve the market linking Far East and South America.
Intra-Asia trade
December - In cooperation with MCC Transport, the MBS service was launched which ensured a stable transshipment link to Chittagong in Bangladesh via the transit hub in Tanjung Pelepas.
September - The JVT service was launched. It is operated independently by Evergreen Line, and improves links between Japan, China, Hong Kong, Vietnam, and Thailand.
August - The CIX-2 (China-India Express) service was established between the Far East and the Indian sub-continent. K Line and Simatech will also operate on the route.
June - The HBS service was introduced with partner CNC line, strengthening the connection between China, Singapore, Malaysia, and Indonesia.
March - The CPT loop commenced operations which improved service between China, Phillipines and Thailand.
East Africa trade
May - With Wan Hai Lines and Simatech, the EAF service was launched. It connected Sri Lanka, Tanzania, and Kenya. This marked the entry into the East African market for Evergreen Marine Corporation.
Assets
| Employees | |
|---|---|
| Total | 4,405 |
Products And Services
Container Shipping Services
Reefer Container Services
- fruit and vegetables
- meat
- seafood
- dairy products
- confectionery
- non-alimentary and pharmaceutical products.
E-commerce Services
- interactive sailing schedules
- cargo tracking
- electronic bill of lading.
Mergers Acquisitions
Alliances
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Simatech Shipping
Evergreen Marine Corporation and Simatech Shipping share shipping routes.
© 2011 Transport Intelligence
2010
August - Evergreen Line, Orient Overseas Container Line (OOCL) and Simatech Shipping have agreed to operate a new joint Southeast Asia-India-Middle East liner service beginning on August 20.
The ASEAN-Gulf-ISC (AGI) service will have the following port rotation with a 35-day voyage:
Laem Chabang-Singapor-Tanjung Pelepas-Port Klang-Colombo-Jebel Ali-Karachi-Mundra-Colombo-Port Klang-Singapore-Laem Chabang.
The partners have agreed to operate the AGI service with five 2,700 TEU ships. The Evergreen vessel LT Genova will initiate the service from Laem Chabang departing on August 20.
Evergreen, OOCL and Simatech have entered the new service to meet growing trade demand between ASEAN nations, India, Pakistan and the United Arab Emirates. The AGI service will shorten transit times and enhance the shipping network in the region.
Simetch Shipping provide a feeder service in the Gulf, the Indian sub-continent and the Far East.
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Hanjin Shipping
Evergreen Marine Corporation and Hanjin Shipping share shipping routes.
© 2011 Transport Intelligence
2011
October - Hanjin Shipping announced that it was launching a Far East-West India direct service starting from the end of October.
Named ICS (India-China Service), it would be operated by a line of partner carriers including Hanjin Shipping, Evergreen and NYK, in which Hanjin Shipping and Evergreen will be deploying one 2,500 TEU class each and NYK, three.
Click here to view alliance concern details -
The Topocean Group
The Topocean Group is an NVOCC operating between Asia and the US and it has concluded contracts with some 18 carriers using Pacific routes, including Evergreen.
© 2011 Transport Intelligence
Click here to view alliance concern details -
Wan Hai Lines
Wan Hai Lines and Evergreen Marine Corporation share shipping routes.
© 2011 Transport Intelligence
2011
April - Wan Hai Lines, Evergreen Line and Interasia Lines announced the launch of a Taiwan to Madras direct service commencing at the end of April.
The joint service, known as TMT, consists of four 1,300 TEUs vessels with two operated by WHL and one by EMC and IAL each. The service will run on a 28 days basis with the following rotation:Taichung-Keelung-Hong Kong-Nansha-Shekou-Port Kelang-Chennai-Penang-Port Kelang-Singapore-Yantian-Hong Kong-Taichung.
April - Wan Hai Lines, Evergreen Line, COSCON and PIL announced the launch a new direct service connecting Asia to West Coast of South America service.
The service, WSA, consists of ten 3,000 TEUs vessels with EMC deploying four and Coscon/PIL/WHL deploying two respectively.
The service runs on a 70 days rotation, calling at:Kaohsiung-Yantian-Hong Kong-Ningbo-Shanghai-Manzanillo-Buenaventura-Callao-Iquique-San Antonio-Kaohsiung.
April - Wan Hai Lines (WHL), Evergreen Line, Mitsui OSK Lines (MOL) and SEA CONSORTIUM have announced a joint operation, Asia East Africa service (AEF).
The AEF service will deploy six ships with capacity between 1,200 TEUs and 1,350 TEUs. Out of the six vessels, WHL will be contributing two into the AEF service.The rotation runs as follows:
Singapore-Tanjung Pelepas-Port Kelang-Mombasa-Dar es Salaam-Tanzania-Singapore.
Click here to view alliance concern details -
Zim Integrated Shipping Services
Zim Integrated Shipping Services and Evergreen Marine Corporation share shipping routes.
© 2011 Transport Intelligence
2011
April - Evergreen Line, China Shipping Container Lines (CSCL) and Zim Integrated Shipping Services (ZIM) announced the launching of a new joint weekly Asia-Europe service. The service, commencing in late April 2011, would be dubbed as 'CES2' by Evergreen and 'AEX2' by CSCL and ZIM.
The carriers together would deploy nine ships with capacity of between 8,000 TEUs and 8,500 TEUs. Evergreen would supply five 8,000 TEUs vessels. One 8,000 TEUs and two 8,500 TEUs vessels would come from ZIM's fleet and one 8,000 TEUs from CSCL.
Click here to view alliance concern details -
China Shipping Container Lines Co. Ltd.
Evergreen and China Shipping Container Lines share shipping routes.
© 2011 Transport Intelligence
2009
June - Evergreen Line and China Shipping Container Lines announced a cooperative agreement on their Asia-Europe, Asia-Mexico-US East Coast and Asia-US West Coast services to commence in June.
The China-North Europe service will have eight ships, each with a capacity of 8,000 TEUs. The Asia-Mexico-US East Coast will also have eight ships, but with smaller capacities of 4,000 TEUs
The two lines will share slots on the Asia-US Pacific South West Coast route.
Click here to view alliance concern details -
COSCO Group
Evergreen Marine Corporation and COSCO Group share shipping routes.
© 2011 Transport Intelligence
Click here to view alliance concern details -
Emirates Shipping Line
2010
August - Emirates Shipping Line announced its participation in the ASEAN - Gulf - Indian Subcontinent (AGI) service, launched by a consortium of Evergreen, Simatech and OOCL, offering a direct link from Thailand to the Middle East and the Indian Sub continent.
The port rotation is:
Laem Chabang-Singapore-Tanjung Pelepas-Port Klang-Colombo-Jebel Ali-Karachi-Mundra-Colombo-Port Klang-Singapore-Laem Chabang.
Click here to view alliance concern details -
Hamburg Süd Group
Hamburg Sud and Evergreen Marine Corporation jointly combine services on certain shipping routes.
© 2012 Transport Intelligence
2008
October - Global container shipping lines APL, Hamburg Süd, Hapag-Lloyd and Hyundai Merchant Marine (HMM) announced that they would team up with Taiwanese worldwide carrier Evergreen in the trade between North East Asia and Australia.
The two loops are as follows:
Northern loop: Yokohama-Osaka-Pusan-Qingdao-Shanghai-Ningbo-Melbourne-Sydney-Brisbane-Yokohama.
Southern loop: Kaohsiung-Yantian-Hong Kong-Melbourne-Sydney-Brisbane-Kaohsiung.
The lines said the services would be operated with five modern 3,500 TEU nominal vessels (AAS northern loop) and four modern 2,500 TEU nominal vessels (AAS southern loop). Hamburg Süd would provide three vessels, HMM and APL two vessels each, and Hapag-Lloyd and Evergreen one vessel each.
Click here to view alliance concern details -
Hapag-Lloyd (Acquired by Albert Ballin 2010)
Evergreen Marine Corporation and Hapag-Lloyd jointly operate certain shipping routes.
© 2012 Transport Intelligence
Click here to view alliance concern details -
Hutchison Port Holdings
In December 2008, Hutchison Port Holdings and Evergreen Marine Corporation completed a cross-sharing agreement concerning Taranto Container Terminal in Italy, London Thamesport in the UK and ECT Delta in Rotterdam, the Netherlands.
© 2012 Transport Intelligence
2008
December - Hutchison Port Holdings (HPH) and Evergreen Group announced that they had signed an agreement whereby, upon completion, HPH would become a shareholder of Taranto Container Terminal S.P.A. in Italy.
In a statement, HPH explained that the agreement constituted a share swap of Taiwan-based Evergreen's interest in Taranto Container Terminal for a minority stake interest in two of HPH's European operations, London Thamesport (LTP) in the UK and ECT Delta in Rotterdam, the Netherlands.
The port of Taranto, is one of Italy's top five container ports, and is located approximately 170 nautical miles from the main Suez-Gibraltar shipping route. Taranto Container Terminal has a total quay length of 2,050 m with a land area of 100 ha and a depth alongside of 15.5 m. The terminal commenced operations in 2001 under a 60-year concession.
Click here to view alliance concern details -
Hyundai Merchant Marine Co., Ltd.
Evergreen Marine Corporation and Hyundai Merchant Marine jointly operate certain shipping routes.
© 2011 Transport Intelligence
2008
October - Global container shipping lines APL, Hamburg Süd, Hapag-Lloyd and Hyundai Merchant Marine (HMM) announced that they would team up with Taiwanese worldwide carrier Evergreen in the trade between North East Asia and Australia.
The two loops are as follows:
Northern loop: Yokohama-Osaka-Pusan-Qingdao-Shanghai-Ningbo-Melbourne-Sydney-Brisbane-Yokohama.
Southern loop: Kaohsiung-Yantian-Hong Kong-Melbourne-Sydney-Brisbane-Kaohsiung.
The lines said the services would be operated with five modern 3,500 TEUs nominal vessels (AAS northern loop) and four modern 2,500 TEUs nominal vessels (AAS southern loop). Hamburg Süd would provide three vessels, HMM and APL two vessels each, and Hapag-Lloyd and Evergreen one vessel each.
Click here to view alliance concern details -
Maersk Line (AP Moller - Maersk Group)
Maersk Line and Evergreen Marine Corporation jointly operate certain shipping routes/services.
© 2012 Transport Intelligence
2008
February - Maersk Line announced that it had agreed to cooperate with Evergreen Marine Corporation in Asia-Europe trade. The new arrangement between the two global container shipping lines, which was due to take operational effect from March (westbound) and April (eastbound), covers Denmark based Maersk's AE2 service and Taiwanese line Evergreen's CEM operation.
The services had the following rotations:
AE2: Busan (South Korea), Kwanyang (South Korea), Dalian (China), Xingang (China), Qingdao (China), Shanghai (China), Bremerhaven (Germany), Rotterdam (Netherlands), Felixstowe (UK), Tangier (Morocco) and Salalah (Oman).
CEM: Kaohsiung (Taiwan), Ningbo (China), Shanghai (China), Yantian (China), Hong Kong (China), Tanjung Pelepas (Malaysia), Le Havre (France), Hamburg (Germany), Rotterdam (Netherlands), Thamesport (UK), Port Said (Egypt) and Tanjung Pelepas (Malaysia).
Click here to view alliance concern details -
NOL
NOL, through APL, and Evergreen Marine Corporation share shipping routes.
© 2012 Transport Intelligence
2008
October - Global container shipping lines APL, Hamburg Süd, Hapag-Lloyd and Hyundai Merchant Marine (HMM) announced that they would team up with Taiwanese worldwide carrier Evergreen in the trade between North East Asia and Australia.
The two loops are as follows:
Northern loop: Yokohama-Osaka-Pusan-Qingdao-Shanghai-Ningbo-Melbourne-Sydney-Brisbane-Yokohama.
Southern loop: Kaohsiung-Yantian-Hong Kong-Melbourne-Sydney-Brisbane-Kaohsiung.
The lines said the services would be operated with five modern 3,500 TEUs nominal vessels (AAS northern loop) and four modern 2,500 TEUs nominal vessels (AAS southern loop). Hamburg Süd would provide three vessels, HMM and APL two vessels each, and Hapag-Lloyd and Evergreen one vessel each.
Click here to view alliance concern details -
OOCL
OOCL and Evergreen Marine Corporation jointly operate certain shipping routes.
© 2012 Transport Intelligence
2010
August - Evergreen Line, Orient Overseas Container Line (OOCL) and Simatech Shipping agreed to operate a new joint Southeast Asia-India-Middle East liner service.
The ASEAN-Gulf-ISC (AGI) service will have the following port rotation with a 35-day voyage:
Laem Chabang-Singapore-Tanjung Pelepas-Port Kelang-Colombo-Jebel Ali-Karachi-Mundra-Colombo-Port Kelang-Singapore-Laem Chabang.
Evergreen, OOCL and Simatech entered the new service to meet growing trade demand between ASEAN nations, India, Pakistan and the United Arab Emirates. The AGI service will shorten transit times and enhance the shipping network in the region.
Click here to view alliance concern details -
Panama Canal Authority
Evergreen Marine Corporation uses the Panama Canal on its Atlantic-Pacific shipping routes.
© 2011 Transport Intelligence
Click here to view alliance concern details -
Yang Ming Group
Yang Ming Group and Evergreen Marine Corporation share shipping routes.
© 2011 Transport Intelligence
2009
September - CKYH Alliance (Coscon, K Line, Yang Ming, Hanjin Shipping) and Evergreen Line launched a new service in the US East Coast-North West Europe trade route.
Named TAE (Trans Atlantic Express), the new service will be a combination of two existing lanes operated by CKYH Alliance and Evergreen Line:
TAS1: Transatlantic Service loop one by CKYH.
NUE: North Asia-U.S. East Coast-European Pendulum by Evergreen Line.
The TAE service will operate with a total of four vessels with capacities of 2,400 TEUs with CKYH and Evergreen Line deploying two vessels each.
Click here to view alliance concern details
Sister Concerns
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Italia Marittima S.p.A
Italia Marittima S.p.A, formerly (Lloyd Triestino di Navigazione S.p.A), has a 170 year tradition of being Italy's premier ocean carrier. It is a member of the Evergreen Line joint service agreement
© 2011 Transport Intelligence
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EVA Air
EVA Air is an airline that is part of the Evergreen Group.
© 2011 Transport Intelligence
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Evergreen Marine (Hong Kong)
Evergreen Marine (Hong Kong), formerly Evergreen Star Hong Kong is a member of Evergreen Line, the joint service agreement.
© 2011 Transport Intelligence
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Evergreen Marine (Singapore)
Evergreen Marine (Singapore) is a member of Evergreen Line, the joint service agreement.
© 2011 Transport Intelligence
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Evergreen Marine (UK)
Evergreen Marine (UK), formerly Hatsu Marine Ltd, is part of the joint service agreement of Evergreen Line. As well as being part of the global container service, the company is responsible for developing new markets in Northern Europe, Russia, and the new member states of the European Union.
© 2011 Transport Intelligence
Major Contracts Listing
2011
May - The Evergreen Group has placed an order with CSBC Corporation to build 10 container vessels, each with a capacity of 8,000 TEUs for US$1.03bn. The vessels will start to be delivered towards the end of 2013.
Three of the new vessels will be built for Evergreen Marine Corporation (Taiwan), four for Evergreen Marine (UK), and the remaining three for Evergreen Marine (Singapore).2010
September - Evergreen ordered 10 additional vessels from Samsung Heavy Industries, each with a capacity of 8,000 TEUs. This follows an identical order made in July. The contract is worth US$1.03bn.
July - Evergreen has commissioned Samsung Heavy Industries to construct 10 container ships, each with a capacity of 8,000 TEUs. It will cost Evergreen US$1.03bn.
Regions
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Africa Other Related Countries
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Asia Pacific Related Countries Other Related Countries
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Australia
Australia: 2007 News2007
November - Evergreen reinstated its service linking South East Asia and Australia.
Through a slot charter agreement with Maersk Line on the AU3 route, the Taiwan-based carrier offered a weekly express service.
The AU3 service employed four 4,100-TEU vessels.
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Japan
Japan: 2007 News2007
September - Ever Salute, the last of ten 7,024TEU S-series vessels being built for Evergreen in Japan, was launched on 8 September at Mitsubishi Heavy Industries' Kobe shipyard.
Due for delivery in January 2008, Ever Salute is scheduled to join one of Evergreen Line's transpacific services. The first eight vessels are now operating on the company's new China Europe Shuttle (CES) that offers a fast link between Asia and North Europe, while the ninth vessel, Ever Safety, is scheduled for delivery next month (October) and will also enter the transpacific trade.
The S-series ships have advanced design features, intended to minimise their impact on the environment during normal operations and in the event of any accident.
The S-series vessels incorporate double-skinned hulls and fuel oil tanks located in protected locations within the transverse bulkhead spaces, thus minimising the risk of oil pollution.
With an overall length of 300 m and a beam of 42.8 m, the S-series vessels are able to carry containers 17 rows across on deck and 15 rows across below deck. The carriage of temperature-controlled containers, an increasingly important revenue source, is made possible with the provision of 839 reefer plugs.
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Taiwan
Taiwan: 2006 News2006
November - Ever Strong, the seventh in a series of ten 7024 TEUs S-type vessels being built for Evergreen in Japan, took to the water for the first time at Mitsubishi Heavy Industries' Kobe shipyard.
Due for delivery in March 2007, Ever Strong is scheduled to enter service on the Transpacific Southwest (TPS) service linking Southern China, Hong Kong and Taiwan with the West Coast of North America.
The Evergreen Group is in the midst of taking delivery of 18 large post-Panamax containerships, the first of which was delivered in 2005. Eight 8063 TEUs C-types are already in service and the S-type series will complete in 2008.
The Evergreen Group's S-class vessels exceed all national and international regulations regarding environmental protection.
The S-type vessels incorporate design features such as double-skinned hulls and fuel oil tanks located in protected locations within the transverse bulkhead spaces, thus minimising the risk of oil pollution.
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Australia
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Central & Eastern Europe Other Related Countries
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Central America & The Caribbean Other Related Countries
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CIS (Commonwealth of Independent States) Other Related Countries
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Global
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Middle East Other Related Countries
Middle East: 2005 News2005
October - In order to cope with the rising demand for space in Red Sea market, COSCON teamed up with Evergreen and Hapag-Lloyd to launch a new service. Under the agreement, the three parties merged the existing two Red Sea services, the Far East - Red Sea (FRS) service and the Strait - Red Sea Express (SRX) service, into a single new FRS service linking China and South East Asia with the Red Sea.
The new FRS service was expected to commence at the beginning of November 2005, with six vessels of 2,700 TEUs to be deployed by the partners running a weekly service with a turnaround of 42 days.
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North America Related Countries Other Related Countries
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United States
United States: 2006 News2006
February - Following congestion on the US West Coast towards the end of 2004, the pressure had been on carriers to launch additional services via the Panama Canal. The Evergreen Group had responded to this challenge by introducing new services of its own and complementing these with slot charter arrangements with other carriers.
Together with Cosco Container Lines (Coscon), Evergreen Marine Corporation (EMC) launched a new service linking China with the southern states of the United States. Designated the CUE service, it links the ports of Shanghai, Yantian and Hong Kong with Evergreen's Panamanian hub terminal, Colon Container Terminal (CCT), Savannah and Miami. Over CCT, Evergreen offers established feeder links to to ports in Central America, the Caribbean and the north and west coasts of South America.
Using nine ships, each of around 2,700 TEUs, five from Evergreen and four from Coscon, the CUE service operates a regular weekly schedule effective from May and the first sailings commenced on an ad hoc basis in mid March, augmenting Evergreen's existing Asia-US East Coast services.
Evergreen Group company Lloyd Triestino (to be renamed Italia Marittima with effect from 1 March 2006) will also have slot allocations on the CUE service.
The Evergreen Group already offered four direct services between Asia and the US East Coast, namely EMC's NUE pendulum service that linked Asia with North Europe via the Panama Canal and the US East Coast; two end-to-end schedules, EMC's AUE and LT's AUX services; and a slot share agreement with the New World Alliance, the NYX service.
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United States
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Scandinavia Other Related Countries
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South America Other Related Countries
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Western Europe Related Countries Other Related Countries
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Germany
Germany: 2007 News2007
June - Container shipping line Evergreen has announced it is to provide a link between the Far East and Southern Germany via the Adriatic port of Trieste.
It believed this will give shippers a competitive alternative to the busy and expensive Northern European ports. Combining its ADR Far East-Adriatic service with a dedicated block train connection from Trieste to Munich, Evergreen Line will offer shippers a direct-to-door service across Southern Germany. Outbound from Germany the train connection with Trieste will allow shippers to reach key markets in the East Mediterranean and Far East.
Evergreen Line's ADR service deploys seven 3,150 TEUs vessels on a 49-day rotation. It provides a regular connection between China (Shanghai, Ningbo, Hong Kong, Yantian) and the Adriatic. The Trieste-Munich block train service will initially run twice a week in both directions, gradually increasing to five times a week by the end of the year.
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Italy
Italy: 2007 News2007
May - Evergreen announced it is to provide a link between the Far East and Southern Germany via the Adriatic port of Trieste. It believes this will give shippers a competitive alternative to the busy and expensive Northern European ports. Combining its ADR Far East-Adriatic service with a dedicated block train connection from Trieste to Munich, Evergreen Line will offer shippers a direct-to-door service across Southern Germany. Outbound from Germany the train connection with Trieste will allow shippers to reach key markets in the East Mediterranean and Far East.
Evergreen Line's ADR service deploys seven 3,150 TEUs vessels on a 49-day rotation. It provides a regular connection between China (Shanghai, Ningbo, Hong Kong, Yantian) and the Adriatic. The Trieste-Munich block train service will initially run twice a week in both directions, gradually increasing to five times a week by the end of the year.
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Spain
Spain: 2007 News2007
January - Taiwan's Evergreen Group established a new agency company headquartered in Valencia to serve the growing needs of Spanish shippers and manufacturers. Evergreen Shipping Spain SL (EES) commenced operations on January 1, 2007 and will represent the interests of Evergreen Marine Corporation, Hatsu Marine Ltd and Italia Marittima S.p.A in both Valencia and, through a second office, Barcelona.
The rest of Spain, including Madrid, Alicante and Bilbao, will continue to be represented by Green Iberica, while Portugal, Algeria and Tunisia will also be represented by existing Evergreen agents.
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United Kingdom
United Kingdom: SummaryHatsu Marine Limited was set up in London on November 2, 1979. In 1992 the company was renamed Evergreen UK Ltd. It acts as the European head office and is responsible for Evergreen's entire European operations and business development.
© 2011 Transport Intelligence
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Germany
Vertical Sectors
Logistics markets
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Bulk Logistics
Bulk Logistics: 2007 News2007September - Ever Salute, the last of ten 7024 TEUs S-series vessels being built for Evergreen in Japan, was launched on 8 September at Mitsubishi Heavy Industries' Kobe shipyard.
Due for delivery in January 2008, Ever Salute was scheduled to join one of Evergreen Line's transpacific services. The first eight vessels were operating on the company's new China Europe Shuttle (CES) that offered a fast link between Asia and North Europe, while the ninth vessel, Ever Safety, was scheduled for delivery next month (October) and would also enter the transpacific trade.
The S-series ships had advanced design features, intended to minimise their impact on the environment during normal operations and in the event of any accident.
The S-series vessels incorporate double-skinned hulls and fuel oil tanks located in protected locations within the transverse bulkhead spaces, thus minimising the risk of oil pollution.
With an overall length of 300 metres and a beam of 42.8 metres, the S-series vessels were able to carry containers 17 rows across on deck and 15 rows across below deck. The carriage of temperature-controlled containers, an increasingly important revenue source, was made possible with the provision of 839 reefer plugs.Bulk Logistics: 2006 News2006
November - Ever Strong, the seventh in a series of ten 7024 TEUs S-type vessels being built for Evergreen in Japan, took to the water for the first time at Mitsubishi Heavy Industries' Kobe shipyard.
Due for delivery in March 2007, Ever Strong was scheduled to enter service on the Transpacific Southwest (TPS) service linking Southern China, Hong Kong and Taiwan with the West Coast of North America.
The Evergreen Group was in the midst of taking delivery of 18 large post-Panamax containerships, the first of which was delivered in 2005. Eight 8063 TEUs C-types were already in service and the S-type series would complete in 2008.
The Evergreen Group's S-class vessels exceed all national and international regulations regarding environmental protection.
The S-type vessels incorporate design features such as double-skinned hulls and fuel oil tanks located in protected locations within the transverse bulkhead spaces, thus minimising the risk of oil pollution.
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Green Logistics
Green Logistics: SummaryEvergreen has ordered 30 ships since 2010. These new ships have the latest fuel saving features to reduce carbon emissions.
Furthermore, the new ships have tin free coatings and are constructed with environmentally friendly materials to reduce marine pollution.
The ships will also keep an inventory of hazardous materials, or Green Passport which ensures the safe recycling of ships.
AMP shore electric power will also reduce air pollution caused by emissions from harboured ships.
The new ships will comply with the Evergreen 'Greenship' design concept which was introduced in 2003. Every Evergreen Line ship constructed since then has had these environmental considerations satisfied.
S-Type Vessel Profile
Built by Mitsubishi Heavy Industries, the Evergreen Group's S-class vessels exceed all national and international regulations regarding environmental protection by incorporating design features such as double-skinned hull and all fuel oil tanks have been located in protected locations, within the transverse bulkhead spaces, thus minimising the risk of oil pollution.
A high capacity oily water separator enables the oil content of waste water to be reduced to just 15ppm while much larger separated bilge oil and bilge holding tanks provide more storage capacity, enabling the vessels to avoid any discharge when sailing in sensitive areas and to maximise the amount of waste that can be held for ultimate disposal in specialised shore facilities.
Similar arrangements have been made for handling sewage, grey water and cargo hold bilges when the vessels are in port or close to shore, while the ships also incorporate 'cold-ironing' - the ability to shut down all shipboard generators and switch to shore-based electricity supplies while in port.
© 2011 Transport IntelligenceTechnical Features of the S-Type Green Ships
Source: Evergreen
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Sea Freight
Sea Freight: 2011 News2011
May - The Evergreen Group has placed an order with CSBC Corporation to build 10 container vessels, each with a capacity of 8,000 TEUs for US$1.03bn. The vessels will start to be delivered towards the end of 2013.
Three of the new vessels will be built for Evergreen Marine Corporation (Taiwan), four for Evergreen Marine (UK), and the remaining three for Evergreen Marine (Singapore).Sea Freight: 2010 News2010
September - Evergreen ordered 10 additional vessels from Samsung Heavy Industries, each with a capacity of 8,000 TEUs. This follows an identical order made in July. The contract is worth US$1.03bn.
July - Evergreen has commissioned Samsung Heavy Industries to construct 10 container ships, each with a capacity of 8,000 TEUs. It will cost Evergreen US$1.03bn.Sea Freight: 2007 News2007
September - Ever Salute, the last of ten 7,024 TEUs S-series vessels being built for Evergreen in Japan, was launched at Mitsubishi Heavy Industries' Kobe shipyard.
Due for delivery in January 2008, Ever Salute is scheduled to join one of Evergreen Line's transpacific services. The first eight vessels are now operating on the company's new China Europe Shuttle (CES) that offers a fast link between Asia and North Europe, while the ninth vessel, Ever Safety, is scheduled for delivery next month (October) and will also enter the transpacific trade.
The S-series ships have advanced design features, intended to minimise their impact on the environment during normal operations and in the event of any accident.
The S-series vessels incorporate double-skinned hulls and fuel oil tanks located in protected locations within the transverse bulkhead spaces, thus minimising the risk of oil pollution.
With an overall length of 300m and a beam of 42.8m, the S-series vessels are able to carry containers 17 rows across on deck and 15 rows across below deck. The carriage of temperature-controlled containers, an increasingly important revenue source, is made possible with the provision of 839 reefer plugs.
News
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03/06/2009 Evergreen and China Shipping announce co–operation
03/06/2009
Evergreen Line and China Shipping Container Lines have announced that they have agreed a co–operative agreement on their Asia–Europe, Asia–Mexico–US East Coast and Asia–US West Coast services commencing June 2009. The agreement was signed by First Vice Group Chairman of the Evergreen Group, Mr S S Lin and Chairman of China Shipping Container Lines, Mr S D Lee on 27 May in Shanghai, China.
The joint services are:
- China North Europe service with a total of eight 8,000 TEU vessels.
- Asia Mexico US East Coast service with a total of eight 4,000 TEU vessels.
The two lines will share slots on the Asia–US Pacific South West Coast route.
Commenting on this latest development, Evergreen and China Shipping stated:
"With the benefits of slot–sharing arrangements and joint services, we expect both Evergreen and China Shipping to see significantly upgraded service coverage and more efficiently utilised capacity on the crucial Asia–Europe and Asia–America trades as a result, so providing a better service to our customers."
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26/01/2009 Container shipping lines cut north east Asia–Australia capacity
26/01/2009
Latest evidence of the continuing cutbacks in container shipping service capacity around the world comes from the Asia Pacific region.
AAS consortium partners APL, Hamburg Sud, Hapag–Lloyd, Hyundai Merchant Marine and Evergreen Marine announced on Friday (January 23) that "due to deteriorating market conditions", they had decided to reduce their capacity in the trade between north east Asia, including China, and Australia with immediate effect. They said total nominal AAS capacity would be reduced by 3,200 TEUs per week in the period February 1 through to June 2009.
"This will be achieved by idling the AAS southern loop during this period. The AAS northern loop will be adjusted in scope to cover the Taiwan, south China and Hong Kong markets."
The lines said the revised service structure, which would be operated with six modern vessels of 3,600 TEUs nominal capacity, would have the following rotation: Busan–Qingdao–Shanghai–Ningbo–Kaohsiung–Yantian–Hong Kong–Melbourne–Sydney–Brisbane–Kaohsiung–Busan. The Japanese market would continue to be served through separate individual arrangements.
"The AAS consortium partners will review the trade prospects in June 2009. Should the trade situation improve sufficiently to warrant additional capacity, the AAS southern loop will be re–established," they added.
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22/12/2008 HPH to take stake in Italy´s Taranto Container Terminal
22/12/2008
Hutchison Port Holdings (HPH) and Evergreen Group announced on Friday (December 19) that they had signed an agreement whereby, upon completion, HPH would become a shareholder of Taranto Container Terminal S.P.A. in Italy.
In a statement, Hong Kong–based global port terminal operator HPH explained that the agreement constituted a share swap of Taiwan–based Evergreen's interest in Taranto Container Terminal for a minority stake interest in two of HPH's European operations, London Thamesport (LTP) in the UK and ECT Delta in Rotterdam, the Netherlands.
Commenting on the agreement, John Meredith, Group Managing Director of HPH, said the new investment would enable HPH to establish its first transhipment presence in the central Mediterranean and further enhance its global relationship with Evergreen.
Raymond Lin, Vice Group Chairman of Evergreen Group, commented: "This is a win–win cooperation for our two companies. We are able to access HPH's wealth of knowledge in common user terminal management and at the same time gain an interest in two very important deep sea container terminals in northern Europe."
The port of Taranto, which is said to be one of Italy's top five container ports, is located approximately 170 nautical miles from the main Suez–Gibraltar shipping route. Taranto Container Terminal has a total quay length of 2,050m with a land area of 100 hectares and a depth alongside of 15.5m. The terminal commenced operations in 2001 under a 60–year concession.
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04/02/2008 Maersk and Evergreen agree to co-operate in Asia-Europe trade
04/02/2008
Maersk Line announced today (February 4) that it has agreed to co-operate with Evergreen Marine Corporation in the Asia-Europe trade. The new arrangement between the two global container shipping lines, which is due to take operational effect from March (westbound) and April (eastbound), covers Denmark-based Maersk's AE2 service and Taiwanese line Evergreen's CEM operation.
Those services have the following rotations:
- AE2: Busan (South Korea), Kwanyang (South Korea), Dalian (China), Xingang (China), Qingdao (China), Shanghai (China), Bremerhaven (Germany), Rotterdam (Netherlands), Felixstowe (UK), Tangier (Morocco) and Salalah (Oman).
- CEM: Kaohsiung (Taiwan), Ningbo (China), Shanghai (China), Yantian (China), Hong Kong (China), Tanjung Pelepas (Malaysia), Le Havre (France), Hamburg (Germany), Rotterdam (Netherlands), Thamesport (UK), Port Said (Egypt) and Tanjung Pelepas (Malaysia).
Maersk said the new co-operation would start westbound with the sailings of the Ital Contessa (voyage 0453-014W) on March 6 from Kaoshiung and the Grete Maersk (voyage 0806) on March 9 from Busan. Eastbound services would start with the sailings of the Ital Contessa (voyage 0453-014E) on April 2 from Le Havre and the Grete Maersk (voyage 0807) on April 9 from Bremerhaven (Germany).
In a separate development, Maersk has also announced the introduction of a new intra-Asia service, the IA-3. That service, which will be operated with two 4,000-TEU vessels, will connect the ports of Kaohsiung, Xiamen and Hong Kong with Maersk's south-east Asian hub port of Tanjung Pelepas (Malaysia) and Singapore. The first sailing is scheduled to depart Hong Kong on March 4.
Briefs
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18/05/2009 Fall in Chinese exports a key factor in container shipping line losses
18/05/2009
Last week saw the Chinese government release figures showing a major decline in the country's exports. Total exports in April were down 22.6% on the comparable month in 2008. That performance followed an annualised fall of 17.1% in March. Imports also fell by 23% in April on an annualised basis.
Coinciding with that news from China, major global container shipping lines Maersk, Hapag–Lloyd, Neptune Orient Lines and Evergreen Marine all announced huge losses for the first quarter of this year. Such is the savage state of the container shipping market, that Maersk's owner, Danish conglomerate A.P. Moller–Maersk, may be driven into loss for the entire year. Maersk's container business suffered a first quarter a loss in terms of EBIT (earnings before interest and tax) of US$424m, with revenue down almost 40%. Volumes fell 14%.
All the container shipping company losses were driven by the collapse in demand and a surfeit of capacity in the market. Eivind Kolding, CEO of Maersk, tacitly admitted to analysts and journalists that the line had yet again cut its container rates on eastbound transpacific routes by more than 10%. Other routes were only slightly less bad, as container lines desperately tried to secure any cargo to fill their ships.
Although the issue of too many ships is important, global shipping fleet capacity has in fact been cut by around 10%. The real problem is the volume falls in the China trade. A fall of 25% in exports from China, as was seen in April, calls into question the viability of the present structure of the container shipping sector.
The terrifying thing for shipping companies is that the drop in volumes may get worse if China's competitiveness as an exporter declines. Economies such as those of the US and the UK are rebalancing their trade, whilst the economy of South Korea, for example, is showing signs of stabilising its exports.
That represents a major change in the trading pattern of the world and therefore of the container shipping sector. The problem is the container shipping sector is orientated to making money from the China trade. That is where the shortages of capacity were in the recent past, not on export lanes from Europe, North America or indeed from other areas of east Asia.
Like the Chinese government, shipping companies must be hoping for a return to the export performance of the past 10 years. But is that really realistic? If it is not, how will the container shipping sector change?
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14/01/2009 Resistance to TSA's capacity control bid increases
14/01/2009
Resistance is increasing among shippers and freight forwarders in the US to moves by the Transpacific Stabilization Agreement (TSA) to secure the authority to manage container vessel capacity on behalf of its 14 ocean carrier members in the eastbound trade from Asia to the US west coast.
The TSA is a US–based research and discussion association whose members between them ship over 80% of the total container volumes in the eastbound transpacific trade (a list of the TSA's members is provided below).
Such 'discussion agreement' associations have no antitrust immunity with respect to liner shipping services in the trade lanes which they represent. Unlike conferences, discussion agreements currently do not have the power to set freight rates and other key elements of shipping services on behalf of their members in a particular trade lane. Conferences became illegal in the EU from mid–October 2008 and have not operated in the transpacific trade since 1999.
The TSA requested, via an entry in the US Federal Register on December 29, 2008, that the Federal Maritime Commission (FMC), the shipping regulatory body in the US, provide it with the authority to manage capacity, a development which could have a major impact on freight rate movements. Furthermore, the TSA requested that authority be given to it 14 days from the Federal Register entry date, rather than the customary 45 days.
Clearly, that allows substantially less time for consideration and comments from the shipping industry but vociferous objections have already been forthcoming within the last week or so. As reported yesterday 'US forwarders oppose TSA antitrust immunity request' (Ti Logistics Briefing, News, January 13), the National Customs Brokers & Forwarders Association of America (NCBFAA) has submitted comments to the FMC opposing the TSA's requested antitrust immunity.
In the last few days, the NCBFAA has been joined in its objections to the TSA's request by another major organisation, the National Industrial Transportation League (NITL), which represents several hundred US–based shippers and forwarders. The NITL has formally asked the FMC to deny the TSA's request, arguing that with the TSA's members controlling a high percentage of eastbound transpacific tonnage, the TSA's proposal has the potential to distort the market for ocean shipping services in that trade lane, which could be harmful to shippers.
Peter Gatti, NITL's Executive Vice President, explained to Transport Intelligence: "We realise that shipment volumes are down and carriers need to reduce costs by reducing vessel capacity. But we believe that such decisions should be made by individual shipping lines, not by the TSA.
"Furthermore, the current economic downturn affects many industries which, unlike the shipping industry, do no benefit from antitrust immunity. We believe that such collective discussions between competitors concerning the supply of services is not an appropriate way to address the downturn and loss of revenue by ocean carriers."
The TSA's 14 members are: APL, China Shipping, Cosco, CMA CGM, Hanjin, Evergreen Marine, Hyundai Merchant Marine, Hapag–Lloyd, NYK, K Line, Yang Ming, MSC, OOCL and Zim Integrated Shipping Services.