Backed by higher freight rates, Evergreen Marine Corp (長榮海運), the nation’s largest container shipper, yesterday reported that revenue last quarter grew 89 percent from a year earlier to NT$170 billion (US$5.88 billion).
Even though the Shanghai Containerized Freight Index (SCFI), which reflects spot freight rates on major routes that Shanghai is on, declined in the first quarter to 4,540 points late last month from 5,109 points in early January, the index was still much higher in the first quarter than a year earlier.
The container shipper reported revenue of NT$58.6 billion for last month, up 84 percent year-on-year and the highest in a single month over the past 12 months, company data showed.
The strong showing was not surprising, as the shipper told an investors’ conference last month that it expected sharp gains in revenue as average freight rates rose to about US$3,000 in the first quarter from less than NT$1,800 a year earlier,
In related news, Evergreen International Corp (長榮國際), a management unit of Evergreen Group (長榮集團), on Wednesday announced the appointment of Cheng Shen-chih (鄭深池) as its new chairman. Its previous chairwoman, Ko Lee-ching (柯麗卿), had completed her term.
Evergreen International, which is listed on the Taiwan Stock Exchange, is not a major shareholder of Evergreen, but affiliate Panama Evergreen International SA is a major shareholder with 391 million shares of Evergreen Marine, data from the two companies showed.
Chang Kuo-hua (張國華), a director at Evergreen Marine and Evergreen International, as well as the eldest son of Evergreen Group founder Chang Yung-fa (張榮發), yesterday slammed the appointment, the Chinese-language Liberty Times (the sister newspaper of the Taipei Times) reported.
Cheng is not as qualified as Ko, and he does not have any shares in Evergreen International, Chang said in a statement.
Moreover, it was inappropriate and contrary to corporate governance principles for Cheng to say that he, as the new chairman, would provide a platform for the Chang family to settle their disputes, Chang said.
Chang said that he is willing to leave the group if his brothers are willing to buy out his shares in the companies, or management disputes might keep occurring.
They could also consider dissolving Evergreen International and the Panama Evergreen International and distribute the proceeds, which they could use to invest in companies that they prefer, Chang said.
Chang added that he hoped he and his brothers could meet or assign lawyers to meet on their behalf for talks.
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