Evergreen Marine: Optimistic Outlook for Q2 and Q3, Fuel Supply Secured for H2
Evergreen Marine stated on the 28th that despite rising fuel costs in Q2, it has secured fuel supply contracts for the second half of the year. The company remains optimistic for Q2 and Q3, citing the peak season in Europe and the US and continued disruptions in the Red Sea, which are expected to keep supply and demand balanced.
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- 📰 Published: May 28, 2026 at 16:16
- 🔍 Collected: May 31, 2026 at 23:51 (79h 35m after Published)
- 🤖 AI Analyzed: June 2, 2026 at 00:45 (24h 53m after Collected)
Central News Agency (Taipei, 28th) Evergreen Marine announced today that while Q2 fuel costs are expected to be higher than Q1, it has already signed fuel supply contracts with major suppliers for the second half of the year. The company maintains an optimistic outlook for the second and third quarters. Q3 is the traditional peak season for the European and American markets, and with the Red Sea route unlikely to return to normal in the short term, the supply-demand structure is expected to remain relatively balanced.
Evergreen Marine held its annual general meeting today. The consolidated revenue for Q1 2026 was NT$86.56 billion, a decrease of approximately 21% compared to the same period last year. The average freight rate per TEU (20-foot container) was US$959, down about 21.5% year-on-year. However, total cargo volume grew slightly to 2.64 million TEUs, an increase of about 1.6% compared to the same period last year, indicating that market demand remains supported.
Evergreen Marine analyzed that the shipping industry currently faces two main challenges: cost pressure from rising fuel prices, and route risks and supply chain disruptions affecting vessel scheduling and overall logistics efficiency. Even if the situation gradually eases in the future, the prior rise in energy prices and the impact on market confidence may have subsequent effects on the global economy and shipping demand.
Evergreen Marine pointed out that international oil prices surged in March this year due to the situation in the Middle East. However, most of the fuel used in Q1 was purchased at lower prices previously, keeping the average Q1 fuel cost relatively stable at approximately US$422 per ton, lower than the US$454 in Q4 2025. With the ongoing escalation in the Middle East, recent oil prices have been about 50% higher than the Q1 average, and Q2 fuel costs are expected to be higher than Q1.
Evergreen further stated that it has signed long-term contracts with major suppliers at key bunkering ports including Singapore, Rotterdam, and Shanghai to ensure stable supply and reduce price volatility risks. It will also flexibly adjust bunkering ports and refueling strategies based on market conditions. Contracts for major bunkering ports for the second half of the year have already been signed to ensure supply, preparing for the possibility that the conflict continues into Q4 and the strait does not return to normal.
Evergreen noted that it remains optimistic about the market for Q2 and Q3. Q3 is the traditional peak season for the European and American markets, and with the Red Sea route unlikely to return to normal in the short term, the supply-demand structure is expected to remain relatively balanced, provided there is no significant increase in market supply. However, it is necessary to observe whether this year's peak season starts and ends earlier than usual.
Evergreen added that the new annual long-term contract prices for the two major East-West routes are basically not much different from last year. Currently, most medium and large customers have completed signing, and fuel adjustment mechanisms have been introduced to reflect cost changes.
Evergreen Marine held its annual general meeting today. The consolidated revenue for Q1 2026 was NT$86.56 billion, a decrease of approximately 21% compared to the same period last year. The average freight rate per TEU (20-foot container) was US$959, down about 21.5% year-on-year. However, total cargo volume grew slightly to 2.64 million TEUs, an increase of about 1.6% compared to the same period last year, indicating that market demand remains supported.
Evergreen Marine analyzed that the shipping industry currently faces two main challenges: cost pressure from rising fuel prices, and route risks and supply chain disruptions affecting vessel scheduling and overall logistics efficiency. Even if the situation gradually eases in the future, the prior rise in energy prices and the impact on market confidence may have subsequent effects on the global economy and shipping demand.
Evergreen Marine pointed out that international oil prices surged in March this year due to the situation in the Middle East. However, most of the fuel used in Q1 was purchased at lower prices previously, keeping the average Q1 fuel cost relatively stable at approximately US$422 per ton, lower than the US$454 in Q4 2025. With the ongoing escalation in the Middle East, recent oil prices have been about 50% higher than the Q1 average, and Q2 fuel costs are expected to be higher than Q1.
Evergreen further stated that it has signed long-term contracts with major suppliers at key bunkering ports including Singapore, Rotterdam, and Shanghai to ensure stable supply and reduce price volatility risks. It will also flexibly adjust bunkering ports and refueling strategies based on market conditions. Contracts for major bunkering ports for the second half of the year have already been signed to ensure supply, preparing for the possibility that the conflict continues into Q4 and the strait does not return to normal.
Evergreen noted that it remains optimistic about the market for Q2 and Q3. Q3 is the traditional peak season for the European and American markets, and with the Red Sea route unlikely to return to normal in the short term, the supply-demand structure is expected to remain relatively balanced, provided there is no significant increase in market supply. However, it is necessary to observe whether this year's peak season starts and ends earlier than usual.
Evergreen added that the new annual long-term contract prices for the two major East-West routes are basically not much different from last year. Currently, most medium and large customers have completed signing, and fuel adjustment mechanisms have been introduced to reflect cost changes.
FAQ
What is Evergreen's outlook?
The company remains optimistic for Q2 and Q3, expecting a balanced supply-demand structure.