Evergreen: Ships made in China are not on the US line
On April 25th, Evergreen Marine Corporation, a shipping giant from Taiwan Province of China, held an earnings conference.
Recently, US President Trump has implemented a reciprocal tariff policy since April. Previously, he also imposed high port charges on Chinese vessels under Section 301. Affected by this, the International Monetary Fund (IMF) has lowered its global economic growth forecast for this year and next, casting a shadow over the global economic outlook.
Evergreen admitted that its business visibility has been impacted by the tariff war, especially as its shipments to China have dropped sharply by 60% to 70% at present. However, Wu Guanghui pointed out that given the close trade dependence between China and the United States is difficult to change easily, both sides are bound to seek solutions respectively.
There is no problem of decline in the volume of goods; it will only be delayed
Wu Guanghui: There is no reason to be pessimistic
Wu Guanghui remains cautiously optimistic about Evergreen's overall operational status in 2025. He explained that the trade dependence between China and the United States is higher than imagined, so the trade frictions between the two sides will eventually have solutions proposed. Now, Evergreen has effectively increased the utilization rate of ships to cope with the current situation by implementing empty flights and adjusting ship routes and other measures.
Wu Guanghui pointed out that especially for consolidated cargo, most of it is a rigid demand. In the future, there will only be "shipment delays", and the possibility of a reduction in cargo volume is relatively small. "As long as the goods still exist, we have no reason to be pessimistic," he said.
Huang Yi-en, deputy director of Evergreen's planning department, explained that Evergreen's fleet only has six 24,000 TEU large container ships built in China and none are placed on the US route. The rest of the ships built by China are all small ones, without economic scale and not placed on the US route.
Huang Yien added that even if the new ships that Evergreen is expected to deliver in the next three years are included in the calculation, the proportion of Chinese shipbuilding is still estimated to be below 20%. Evergreen Marine Corporation and its Ocean Alliance partners will flexibly adjust the cabin space and fleet configuration based on market demand to ensure service quality and competitiveness and reduce the impact of policy uncertainties.
Recently, US President Trump has implemented a reciprocal tariff policy since April. Previously, he also imposed high port charges on Chinese vessels under Section 301. Affected by this, the International Monetary Fund (IMF) has lowered its global economic growth forecast for this year and next, casting a shadow over the global economic outlook.
Evergreen admitted that its business visibility has been impacted by the tariff war, especially as its shipments to China have dropped sharply by 60% to 70% at present. However, Wu Guanghui pointed out that given the close trade dependence between China and the United States is difficult to change easily, both sides are bound to seek solutions respectively.
There is no problem of decline in the volume of goods; it will only be delayed
Wu Guanghui: There is no reason to be pessimistic
Wu Guanghui remains cautiously optimistic about Evergreen's overall operational status in 2025. He explained that the trade dependence between China and the United States is higher than imagined, so the trade frictions between the two sides will eventually have solutions proposed. Now, Evergreen has effectively increased the utilization rate of ships to cope with the current situation by implementing empty flights and adjusting ship routes and other measures.
Wu Guanghui pointed out that especially for consolidated cargo, most of it is a rigid demand. In the future, there will only be "shipment delays", and the possibility of a reduction in cargo volume is relatively small. "As long as the goods still exist, we have no reason to be pessimistic," he said.
Huang Yi-en, deputy director of Evergreen's planning department, explained that Evergreen's fleet only has six 24,000 TEU large container ships built in China and none are placed on the US route. The rest of the ships built by China are all small ones, without economic scale and not placed on the US route.
Huang Yien added that even if the new ships that Evergreen is expected to deliver in the next three years are included in the calculation, the proportion of Chinese shipbuilding is still estimated to be below 20%. Evergreen Marine Corporation and its Ocean Alliance partners will flexibly adjust the cabin space and fleet configuration based on market demand to ensure service quality and competitiveness and reduce the impact of policy uncertainties.
