Evergreen Halts Escalating Losses

Evergreen Marine Corp (EMC)—Taiwan’s flagship shipping company and part of the Evergreen Group—has managed to slow its financial decline. In Q2 2016, Evergreen posted a loss of $36 million USD, a notable improvement compared to the steeper losses in the previous three quarters.

Gradual Recovery After Sharp Losses

With a fleet of 160 vessels, Evergreen is the world’s fourth-largest container carrier (after Maersk, MSC, and CMA CGM). Like most major shipping lines, it has faced severe financial headwinds, including:

• Global overcapacity

• Falling freight rates

• Weak demand

Losses in prior quarters:

• Q1 2016: $123 million

• Q4 2015: $115 million

• Q3 2015: $79 million

The latest $36 million loss indicates that the downward spiral has been interrupted.

Reason for Stabilization Still Unclear

It remains uncertain whether this turnaround is due to:

• Cost-cutting measures

• Improved freight volumes

• Or other factors

Evergreen has stated that a detailed explanation of the results will be provided at a later date.