Evergreen splashed on containers again

Evergreen splashed on containers again
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Evergreen Marine Corporation has ordered 12,500 containers from Singamas Container Holdings for US$34.3 million as the Taiwanese liner operator works to expand its business despite weak market conditions.

In January, Eric Hsieh, Evergreen’s general manager, announced plans to order 40,000 more bins — after spending $51.53 million on 9,800 new drying bins and 6,171 used crates from Evergreen’s Singapore subsidiary in 2022. Last year, Evergreen also spent US$65.24 million to purchase 7,800 reefer containers from Dong Fang International Container.

Evergreen also acquired its Singapore branch office for $32 million to operate its own agency in the Southeast Asian city-state as the group expects to deliver 51 ships over the next two years.

Hsieh appeared optimistic due to the rise in freight rates just ahead of the Chinese New Year holiday, saying that evergreen vessels on the transpacific are fully loaded and the lines are attempting an overall rate increase (GRI) of $1,000-$2,000 enforce per FEU this month.

Hsieh admitted that there have long been concerns about overcapacity. Alphaliner has forecast that container shipping supply will grow by around 8% in 2023, while demand will increase by just 2.7%. He said at the time: “We are not worried about the recent correction in container freight rates and stick to our expansion plans to strengthen our competitiveness.”

However, Hsieh believes that stricter environmental regulations, such as For example, requiring owners and operators to comply with the Carbon Intensity Indicator (CII) requirements could take around 10% of capacity off the market. The tonnage surplus is therefore “possibly not as serious as expected”.

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