Evergreen Group (長榮集團) officials yesterday gave a mixed outlook for this year, saying that EVA Airways Corp (長榮航空) is likely to outperform Evergreen Marine Corp (長榮海運) amid new uncertainties stemming from a brewing global trade war and protectionism.
While the global cargo shipping sector is still recovering from a supply glut, signs of rising trade barriers are expected to be the greatest variable to freight demand this year, Evergreen Marine chairman Anchor Chang (張正鏞) told a news conference in Taipei.
The shipper still expects to see mild growth on the back of continued global economic recovery and major customers’ expansions, Chang said.
Based on precedents set over the past few decades, there is little chance that trade dispute flare-ups will escalate into a full-blown trade war, Chang said, adding that he trusts that world leaders would resolve disagreements and minimize shocks to the market.
Following the collapse of South Korea’s Hanjin Shipping Co, the global shipping sector has made progress in correcting an imbalance between supply and demand.
Amid continued consolidation, shipping customers have been more willing to spread their freight needs around a larger number of carriers to spread the risk, while shippers have refrained from unsustainable price competition, Chang said.
Evergreen Marine would more selective about its business and focus on maximizing the profitability of voyages as opposed to increasing shipping volume, company officials said.
Continued fleet upgrade efforts would also help improve efficiency, meet environmental requirements and reduce operating costs, Chang said.
Evergreen Marine reported that sales in the first two months of the year rose 10.87 percent, to NT$25.49 billion (US$873.7 million), compared with the same period last year.
EVA Airways officials painted a rosier outlook for the airline, citing robust demand for passenger and cargo transportation.
The company is expecting sales in northern Asia to grow 4 percent annually, and aggregate sales are expected to rise 10 percent year-on-year, chairman Steve Lin (林寶水) said.
Sales for January-February rose 11.83 percent annually to NT$27.68 billion, EVA Airways said.
The company is scheduled to receive its first Boeing 787 Dreamliner in the third quarter, the first of a 24-plane Dreamliner fleet it plans to have by 2022
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