Revenue growth at Taiwan’s three largest container shippers slowed last quarter due to lower container spot rates amid the US-China trade dispute and a high comparison base a year earlier, the firms said.
Evergreen Marine Corp (長榮海運) posted a 9.81 percent annual growth in revenue to NT$16.8 billion (US$549.2 million) for last month, which contributed to an 11.24 percent rise in revenue in the third quarter, compared with a combined 23.5 percent rise for the first two quarters, company data showed.
Wan Hai Lines Ltd’s (萬海航運) revenue growth decelerated from 15.6 percent in the first half of this year to 6.5 percent last quarter, while Yang Ming Marine Transport Corp (陽明海運) reported a 2.3 percent decline in third-quarter revenue from a year earlier, data showed.
Evergreen Marine attributed the slower revenue growth last quarter to lower container spot rates on major routes, including from Asia to Europe, the Mediterranean Sea and North America, citing the Shanghai Containerized Freight Index (SCFI).
Unlike contact rates, which are usually fixed for a one-year period, spot freight rates often change due to market conditions.
“That reflected a weakening environment, as ocean carriers cut rates after they found they could not fill their ships, while we think the weaker demand was driven by trade issues before the US and China resumed talks this month,” an Evergreen official said by telephone.
Evergreen said it could still be affected by the deterioration in rates, even though it has gained higher contact rates from major clients this year.
The shipper said it expects spot rates to stabilize and improve this quarter, which would help its revenue continue to expand at a double-digit pace.
Wan Hai, which makes 70 percent of its revenue from intra-Asia routes, said it hopes momentum will recover this quarter, company spokeswoman Laura Su (蘇麗梅) said by telephone.
“We have seen orders from our clients in China pick up more than expected after the Golden Week, so we maintain our forecast that the fourth quarter would be the peak season,” Su said.
Yang Ming declined to comment on its revenue for last quarter.
For the first nine months of the year, Evergreen reported 18.42 percent year-on-year growth in cumulative revenue to NT$142.59 billion, followed by Wan Hai with a 12.35 percent rise to NT$54.13 billion and Yang Ming with a 9.59 percent gain to NT$113.25 billion, data showed.
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