Evergreen Marine: Highly Volatile Market in 2026, Freight Rates to Grow in May
Evergreen Marine held an earnings call, predicting that amidst high market volatility and Middle East tensions, freight rates will rise starting mid-May. The company highlighted supply chain shifts to Southeast Asia and its cost-saving eco-fleet.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 18:16
- 🔍 Collected: April 24, 2026 at 18:31 (15 min after Published)
- 🤖 AI Analyzed: April 24, 2026 at 22:15 (3h 43m after Collected)
Central News Agency
(CNA Reporter Jiang Ming-yen, Taipei, 24th) Evergreen Marine stated that the shipping market in 2026 is highly volatile and full of uncertainties. Driven by the Middle East conflict and rising oil prices, freight rates rebounded in March, and cargo volumes in March and April have risen significantly. A wave of freight rate growth is expected in mid-May.
Evergreen Marine held an institutional investor conference today. The company stated that its group capacity currently ranks 7th globally. By the third quarter of this year, its capacity will reach the milestone of 2 million TEUs (20-foot equivalent units), doubling its size over the past decade.
In the first quarter of 2026, Evergreen Marine's revenue was NT$86.56 billion, a decrease of NT$23.411 billion or about 21% compared to NT$109.971 billion in the same period last year. Regarding operational data, the average freight rate was US$959 per TEU, a decrease of US$263 or about 21.52% from last year; however, cargo volume increased slightly to 2.64 million TEUs, up 40,000 TEUs or about 1.58% compared to the same period last year. Compared to last year, Q1 showed a trend of increasing volume.
Evergreen pointed out that freight rates rebounded in March due to the Middle East conflict and rising oil prices, and cargo volumes in March and April notably increased. While fuel consumption costs dropped in the first quarter of this year, the second quarter will be impacted by rising energy prices, and fuel costs will gradually be reflected.
Evergreen observed that shippers have begun arranging early shipments to avoid subsequent cost inflation pressure and future supply chain disruption risks. Therefore, freight rates are expected to continue rising.
Looking ahead to freight rates, Evergreen President Wu Kuang-hui stated that shippers originally expected rates to drop this year. However, due to the war's impact, rates began climbing in late March. "All shipowners have the confidence to insist on rates." Especially with high inflation making shippers worry about inventory, their willingness to pull cargo early and in larger quantities helps the volume and rate trends in Q2. They have a positive outlook for Q2 and Q3 performance. The biggest variables are the war and increased fuel costs, which will impact inflation and market demand; visibility for Q4 remains unclear.
Furthermore, Evergreen stated that new contracts for European and American routes have been successively finalized. Contract prices were originally slightly lower than last year, but after the surge in oil prices, negotiations with customers ensured that rate levels would not fall below last year's long-term contracts. The long-term contract ratio is 30% for European routes and has slightly dropped to 50% for US routes.
Evergreen remains optimistic about May freight rates, noting that some carriers have requested a GRI (General Rate Increase) of US$2,000 per container for North American routes. It is estimated that other carriers will gradually follow suit, bringing a wave of rate growth by mid-May.
With frequent geopolitical interference, Evergreen noted that the chain reaction will spill over to neighboring ports, causing congestion and affecting rate trends in other markets. The 2026 shipping market is highly volatile and uncertain. Coupled with abnormal weather, a repeat of the 2023 Panama Canal drought, which restricted vessel passage, cannot be ruled out.
Evergreen noted that fuel cost shares dropped in 2025 (accounting for 21%) and further fell to 19% in Q1 of this year, though the ratio is expected to rise later. However, Evergreen is committed to rejuvenating its fleet, and over 90% of its ships are equipped with scrubbers, helping to stabilize fuel costs.
Wu Kuang-hui mentioned that China is the world's largest production base and the US is the largest market. The ratio of China's exports to the US has declined since 2018, shifting to Southeast Asian countries, with Vietnam being the biggest beneficiary. China's imports from the US have also decreased since 2017. This shows that the trade dependency between China and the US is declining, and physical container transport between the two is also reducing. Evergreen's current capacity deployment aligns with this shifting trend. (Editor: Yang Lan-hsuan) 1150424
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(CNA Reporter Jiang Ming-yen, Taipei, 24th) Evergreen Marine stated that the shipping market in 2026 is highly volatile and full of uncertainties. Driven by the Middle East conflict and rising oil prices, freight rates rebounded in March, and cargo volumes in March and April have risen significantly. A wave of freight rate growth is expected in mid-May.
Evergreen Marine held an institutional investor conference today. The company stated that its group capacity currently ranks 7th globally. By the third quarter of this year, its capacity will reach the milestone of 2 million TEUs (20-foot equivalent units), doubling its size over the past decade.
In the first quarter of 2026, Evergreen Marine's revenue was NT$86.56 billion, a decrease of NT$23.411 billion or about 21% compared to NT$109.971 billion in the same period last year. Regarding operational data, the average freight rate was US$959 per TEU, a decrease of US$263 or about 21.52% from last year; however, cargo volume increased slightly to 2.64 million TEUs, up 40,000 TEUs or about 1.58% compared to the same period last year. Compared to last year, Q1 showed a trend of increasing volume.
Evergreen pointed out that freight rates rebounded in March due to the Middle East conflict and rising oil prices, and cargo volumes in March and April notably increased. While fuel consumption costs dropped in the first quarter of this year, the second quarter will be impacted by rising energy prices, and fuel costs will gradually be reflected.
Evergreen observed that shippers have begun arranging early shipments to avoid subsequent cost inflation pressure and future supply chain disruption risks. Therefore, freight rates are expected to continue rising.
Looking ahead to freight rates, Evergreen President Wu Kuang-hui stated that shippers originally expected rates to drop this year. However, due to the war's impact, rates began climbing in late March. "All shipowners have the confidence to insist on rates." Especially with high inflation making shippers worry about inventory, their willingness to pull cargo early and in larger quantities helps the volume and rate trends in Q2. They have a positive outlook for Q2 and Q3 performance. The biggest variables are the war and increased fuel costs, which will impact inflation and market demand; visibility for Q4 remains unclear.
Furthermore, Evergreen stated that new contracts for European and American routes have been successively finalized. Contract prices were originally slightly lower than last year, but after the surge in oil prices, negotiations with customers ensured that rate levels would not fall below last year's long-term contracts. The long-term contract ratio is 30% for European routes and has slightly dropped to 50% for US routes.
Evergreen remains optimistic about May freight rates, noting that some carriers have requested a GRI (General Rate Increase) of US$2,000 per container for North American routes. It is estimated that other carriers will gradually follow suit, bringing a wave of rate growth by mid-May.
With frequent geopolitical interference, Evergreen noted that the chain reaction will spill over to neighboring ports, causing congestion and affecting rate trends in other markets. The 2026 shipping market is highly volatile and uncertain. Coupled with abnormal weather, a repeat of the 2023 Panama Canal drought, which restricted vessel passage, cannot be ruled out.
Evergreen noted that fuel cost shares dropped in 2025 (accounting for 21%) and further fell to 19% in Q1 of this year, though the ratio is expected to rise later. However, Evergreen is committed to rejuvenating its fleet, and over 90% of its ships are equipped with scrubbers, helping to stabilize fuel costs.
Wu Kuang-hui mentioned that China is the world's largest production base and the US is the largest market. The ratio of China's exports to the US has declined since 2018, shifting to Southeast Asian countries, with Vietnam being the biggest beneficiary. China's imports from the US have also decreased since 2017. This shows that the trade dependency between China and the US is declining, and physical container transport between the two is also reducing. Evergreen's current capacity deployment aligns with this shifting trend. (Editor: Yang Lan-hsuan) 1150424
Choose to stand with the facts; every sponsorship you make is a force to protect press freedom.
Download the CNA "First Hand News" APP to immediately grasp the latest news.
The text, pictures, and audio/video of this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.