Evergreen Marine Corporation General Manager Wu Kuang-hui: Shipping demand remains stable, making good progress in signing long-term contracts for the North American route

Taiwan • Business • 04/25 10:02
Evergreen Marine Corporation General Manager Wu Kuang-hui: Shipping demand remains stable, making good progress in signing long-term contracts for the North American route

On April 25, 2025, Evergreen Marine's General Manager Wu Guanghui stated at a corporate briefing that despite the global economic slowdown and US-China trade tensions, the demand for maritime transport has remained steady, with only fluctuations in the growth rate. Evergreen has completed long-term contracts with major North American clients and expects to finalize contracts with small and medium-sized clients by the end of the month. First-quarter revenue increased by 24%, driven by rising freight rates and volume. The company is tackling market uncertainties by adjusting routes and controlling costs to stay competitive.

Key Updates

04/26 05:01

After talks with the retail giant, Walmart informed Chinese suppliers to resume shipments, with the US side bearing the tariffs, creating new dynamics for Canton Fair exporters.

On April 21, 2025, after a meeting between President Trump of the United States and retail giants such as Walmart, Walmart notified Chinese suppliers to resume shipments, with U.S. buyers shouldering tariffs up to 145%. This action attracted attention at the 137th Canton Fair, resulting in some festive product orders being reinstated, while orders for everyday products remained canceled. Exporters highlighted the importance of maintaining supply chain continuity and considered expanding into South American and Middle Eastern markets to diversify risk.

04/26 03:29

Apple plans to shift the production of most iPhones intended for the U.S. market to India by 2026 to address U.S.-China trade tensions.

Apple Inc., due to the trade tensions between the U.S. and China and the pressure of high tariffs, plans to move most of the iPhone production for the U.S. market to India before the end of 2026. Working with Foxconn and Tata Electronics, Apple is expanding local production capacity even though production costs in India are 5% to 10% higher than in China, to tackle the tariff policies. This strategy is intended to lessen dependence on Chinese manufacturing and to counter the high tariffs the U.S. has placed on Chinese products.

04/26 01:00

Beijing is considering waiving tariffs on U.S. imports as the Ministry of Commerce holds intensive consultations with foreign businesses, which include 131 categories of products such as vaccines.

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04/25 21:30

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04/25 14:00

China cancels order for 12,000 tons of U.S. pork, setting a new record since the pandemic and affecting U.S.-China trade and shipping costs.

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04/25 10:02

Evergreen Marine Corporation General Manager Wu Kuang-hui: Shipping demand remains stable, making good progress in signing long-term contracts for the North American route

On April 25, 2025, Evergreen Marine's General Manager Wu Guanghui stated at a corporate briefing that despite the global economic slowdown and US-China trade tensions, the demand for maritime transport has remained steady, with only fluctuations in the growth rate. Evergreen has completed long-term contracts with major North American clients and expects to finalize contracts with small and medium-sized clients by the end of the month. First-quarter revenue increased by 24%, driven by rising freight rates and volume. The company is tackling market uncertainties by adjusting routes and controlling costs to stay competitive.

04/25 09:02

China Considers Exempting Some U.S. Goods from Tariffs: Medical Equipment and Industrial Chemicals on the List, Aviation Sector Could Benefit

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04/25 04:31

Trump temporarily halts reciprocal tariffs policy; companies like DHL and Walmart adopt strategic suspensions in response.

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04/25 03:04

The United States is considering waiving tariffs on auto parts, opening up new export opportunities for manufacturers in Taiwan.

The White House confirmed on April 23, 2025, that President Trump is considering granting tariff exemptions on certain auto parts, covering steel and aluminum, imported parts from China, and non-American components of auto parts. This move has attracted attention from the global automotive supply chain, especially from Taiwan's auto parts industry, as it could open up opportunities to enter the U.S. market. Taiwanese businesses and government agencies stated that if the policy is enacted, it would help stabilize shipments, expand market share, and strengthen partnerships with U.S. distributors.

04/24 23:02

U.S.-China Trade War Eases: President Trump Considers Reducing Tariffs, the CBOT Agricultural Futures Rise Driven by Rising Ethanol Demand

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Challenges in Global Economy and Shipping Growth Rate

During the meeting, Wu Guanghui pointed out that according to the latest forecast by the International Monetary Fund (IMF), the global economic growth rates for 2025 and 2026 are 2.8% and 3%, respectively. Although these figures are lower than previous expectations, they still represent positive growth. He stated that the shipping industry's characteristic is that it mainly transports goods with rigid demand, such as consumer goods and supply chain semi-finished products, so "it's just a matter of growth rate, not recession."

Regarding the decline in cargo volume on the trans-Pacific route in the second quarter, Wu Guanghui believes this is mainly due to deferred shipment times rather than a disappearance of demand. He emphasized, "As long as the goods are still there, there is no reason for pessimism."

Limited Impact of the US-China Trade War, Supply Chain Shift Still Needs Time

In response to the US imposing tariffs on China and the USTR Section 301 policy imposing port fees on Chinese-made ships, Wu Guanghui stated that these measures have indeed caused short-term market shocks, leading some shippers to adopt a wait-and-see approach and temporarily halt shipments. According to company observations, overall capacity in April shrank by 30% to 40%, and China's import and export volume decreased by 60% to 70%. However, he pointed out that restructuring the supply chain is challenging, and the shift of exports from China to Southeast Asia has not yet formed a clear trend.

Wu Guanghui further noted that the US-China trade dependency is much higher than market expectations, and supply chain shifts rely on cooperation from upstream and downstream industries, logistics, and ports, making it difficult to fully achieve in the short term. He believes that the US's initiation of the trade war is more about tactics than actual goals, and the likelihood of it continuing long-term is low.

Stable Progress in North American Long-term Contract Signing, Increase in Both Volume and Price

Regarding the market's focus on the progress of North American long-term contract signing, Wu Guanghui stated that contracts with large retailers have been completed, with a notable increase in both volume and price compared to last year. The signing progress with small and medium-sized customers is slightly slower due to tariff uncertainties, but it is expected to be completed by the end of April.

He pointed out that large US retailers hold an optimistic view of this year's import volume, which is conducive to long-term contract signing and revenue stability. Evergreen's high proportion of long-term contracts on the US line plays a stabilizing role in the company's overall operations.

Impressive First Quarter Performance, Effective Cost Control

According to Evergreen's first-quarter financial report for 2025, revenue hit 109.9 billion yuan, a 24% increase compared to the same period last year. The average freight rate per TEU was $1,222, a 19% year-on-year increase; cargo volume reached 2.61 million TEU, a 3% year-on-year increase. Meanwhile, the average fuel cost per ton decreased from $522 last year to $506, a reduction of about 3%.

Wu Guanghui pointed out that the first quarter showed a positive trend of "increased volume and rising prices," with favorable developments in freight rates, cargo volume, and oil prices, remaining optimistic about profitability.

Strategies and Fleet Configuration to Cope with Market Fluctuations

To respond to changes in market demand and geopolitical risks, Evergreen Marine has adopted multiple strategies, including blank sailings, service reductions, route adjustments, and flexible deployment of ships. The company has also strengthened berthing at Southeast Asian ports to improve ship utilization efficiency and reduce operating costs.

Regarding the US USTR Section 301 policy imposing port fees on Chinese-made ships, Wu Guanghui stated that none of the ships Evergreen currently deploys on US routes are made in China. Of the new ships expected to be delivered in the next three years, about 20% are made in China and are mainly deployed on European and Asian regional routes, having no direct impact on US line operations.

Additionally, Evergreen and its Ocean Alliance partners will flexibly adjust capacity and fleet configuration based on market demand to ensure service quality and competitiveness, reducing the impact of policy uncertainties.

References

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