Evergreen Marine Corp (長榮海運) gave a conservative profit growth outlook for this quarter, as demand and freight rates retreated amid a strong US dollar and surging inflation, but its full-year profit could exceed that of last year, president Eric Hsieh (謝惠全) told an investors’ conference in Taipei yesterday.
The shipper’s third-quarter revenue grew 19 percent to NT$169 billion (US$5.3 billion), slower than an annual expansion of 75 percent in the second quarter and 91 percent in the first quarter, company data showed.
“The third quarter is historically a peak season for shipping, but freight demand last month plunged due to surging inflation. We do not expect a quick rebound this quarter, unless the inflation issue is resolved,” Hsieh said.
Photo courtesy of Evergreen Marine Corp
Nonetheless, Evergreen should be able to stay in the black this quarter, with profit this quarter possibly surpassing that of the same period last year, he added.
With the Shanghai Containerized Freight Index, which reflects spot freight rates on major routes, further declining this week to 1,814 yesterday, Hsieh said that Evergreen is facing pressure from some clients to reduce rates.
Clients, especially those from American and European markets, have asked that the gap between their contract rates and spot rates be reduced, and Evergreen has discussed the issue with them on a case-by-case basis, he said.
Most clients in Asian markets are sticking to their contracts, he added.
Average shipping rates slid to US$2,529 per twenty-foot-equivalent unit last month, falling for the second straight month from US$2,978 in July, compared with a peak of US$3,222 in February, company data showed.
The improvement in congestion at seaports worldwide might have helped lower shipping rates, and the average punctuality rate has recovered to about 45 percent — albeit still far below the pre-COVID-19 level of 70 percent, he said.
Evergreen is conservative, but not pessimistic about next year, Hsieh said, adding that he does expect a net loss next year.
Demand for shipping would be affected by inflation and Russia’s invasion of Ukraine, but global economic growth is forecast to remain in positive territory, Hsieh said.
Even though global shipping capacity would rise next year as shippers receive new vessels, growth would be limited by the implementation of new environmental regulations, or the Carbon Intensity Indicator, Hsieh said.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
Popular vape brands such as Geek Bar might get more expensive in the US — if you can find them at all. Shipments of vapes from China to the US ground to a near halt last month from a year ago, official data showed, hit by US President Donald Trump’s tariffs and a crackdown on unauthorized e-cigarettes in the world’s biggest market for smoking alternatives. That includes Geek Bar, a brand of flavored vapes that is not authorized to sell in the US, but which had been widely available due to porous import controls. One retailer, who asked not to be named, because
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
MINERAL DIPLOMACY: The Chinese commerce ministry said it approved applications for the export of rare earths in a move that could help ease US-China trade tensions Chinese Vice Premier He Lifeng (何立峰) is today to meet a US delegation for talks in the UK, Beijing announced on Saturday amid a fragile truce in the trade dispute between the two powers. He is to visit the UK from yesterday to Friday at the invitation of the British government, the Chinese Ministry of Foreign Affairs said in a statement. He and US representatives are to cochair the first meeting of the US-China economic and trade consultation mechanism, it said. US President Donald Trump on Friday announced that a new round of trade talks with China would start in London beginning today,
RSS