Shipping lines can look to moderate rebound, says Evergreen vice chairman
2012 05 07
- Details
ASIAN container lines can expect a rebound in revenue after first quarter losses from Chinese New Year holiday slowdown and depressed freight rates, according to Evergreen Group vice chairman Bronson Hsieh.
April has seen a rash of freight rate increases on intra-Asia routes on the back of Asian export demand with further increases of US$100 expected in coming weeks since the introduction of rate increases from the Intra-Asia Discussion Agreement (IADA).
Mr Hsieh also believes the industry will "rebound moderately this year under these better operating conditions", because of rate increases across the board.
This, he told the Taipei Times, is supported by its leasing of 10 mega-vessels to Korea Infrastructure Investments Asset Management due for delivery in fourth quarter.
In the first quarter, rising oil prices ate into revenue of container shipping with Taiwan's Yang Ming Marine Transport marking its highest net loss of NT$5.39 billion (US$184.39 million), with Evergreen struggling at NT$3.26 billion, but still up year on year. Wan Hai Lines clawed back market share from its shorter intra-regional routes at NT$327.89 million, again better than the deeper loss of NT$533 million loss fourth quarter 2011.
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