Evergreen International's April Revenue Rises 12% to NT$2.84 Billion

Evergreen International, a major player in the global shipping industry, has announced a robust 12% year-on-year increase in its consolidated revenue for April, reaching NT$2.84 billion. This positive financial performance, detailed in their latest filings, reflects a strong demand from clients, particularly evident in the nearly 20% surge in air freight volume compared to the previous year. While sea freight volume experienced a slight dip, the overall freight volume maintained a steady upward trend, underscoring Evergreen's resilience and market position.

The company's cumulative revenue for the first four months of the year also shows healthy growth, standing at NT$9.891 billion, a 3.8% increase over the same period in 2023. This sustained growth is occurring amidst complex global logistics challenges. Evergreen notes that AI-related cargo continues to drive demand for U.S. imports, while geopolitical tensions in the Middle East are impacting air travel capacity, consequently tightening air cargo space, especially on Asia-Europe routes. Rising fuel surcharges are also contributing to an overall increase in logistics costs.

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Traditional cargo demand remains relatively stable, but overall cost pressure is gradually increasing. As capacity tightens and surcharges rise, companies need to plan shipments in advance and manage logistics costs more prudently.

From Taiwan's perspective, Evergreen's performance is a significant indicator of the health of the global trade and logistics sector, a critical component of the island's export-oriented economy. The company's ability to navigate fluctuating market conditions, including geopolitical instability and rising operational costs, highlights its strategic agility. As Kathy Liu, Evergreen's Vice President of Global Business and Marketing, points out, while traditional cargo demand remains stable, the escalating costs necessitate careful planning and cost management by businesses. Ted Chen, Global Sea Freight Marketing Director, further warns of potential supply shortages if geopolitical tensions persist, impacting shipping companies' pricing and service networks. This situation demands proactive strategies from both shippers and carriers to ensure the smooth flow of goods in an increasingly volatile global environment.

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The main fuel hubs continue to see rising fuel costs. If the situation does not improve, there may be a risk of supply shortages in the future, further affecting shipping companies' adjustments in freight rates and service networks.