Rate increase pushes up Evergreens quarterly profits 12,800pc

TAIWANESE shipping company Evergreen Marine has experienced skyrocketing third-quarter net income to TWD5.21 billion (US$160.71 million), from the TWD40.5 million in the same quarter last year, Bloomberg reports.

The 12,864 per cent increase in third-quarter earnings comes on the back of higher freight rates, as demand in Europe for Asian goods soars, said Bloomberg.

The report said that Evergreen Marine and other container shipping lines increased rates to Europe on July 1 by up to US$300 per container and on top of this introduced a peak season surcharge of US$135 per TEU from August 1.

It noted that according to Drewry Shipping Consultants in London, container freight rates on the East Asia to Europe trade rose 15 per cent in the first half compared to the corresponding period a year ago.

Profit growth comes despite Evergreen Marine's third-quarter sales falling 18 per cent from a year earlier to TWD6.74 billion, according to a filing made by the company to the Taiwan Stock Exchange. Evergreen reported in a filing made earlier this week that its profit for the first nine months of the year has swelled to TWD6.84 billion, the report added.