Freightwaves: Evergreen profit sank 70% in Q1

Published by freightwaves 

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.