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Evergreen Strengthens Container Fleet with Impressive US$187 Million Investment

Taiwanese shipping giant Evergreen has placed an order for 60,500 new containers, with a total value of US$186.8 million. This results in an average cost of US$3,087 per container, indicating that most of the units will likely be 40-foot containers. According to filings with the Taiwan Stock Exchange, Evergreen has split the order among three manufacturers: 23,000 containers from CXIC Group, 21,000 from Guangdong Fuwa Equipment Manufacturing, and 16,500 from Dong Fang International, a subsidiary of Cosco Shipping Development.

Container manufacturers, primarily based in China, have reported a surge in orders, driven in part by the ongoing disruptions in the Red Sea, which are straining both shipping operations and equipment supply. Many factories are now fully booked through the end of the year.

This latest purchase marks Evergreen’s second significant capital expenditure this year. In June, the seventh-largest container line placed an order for six methanol-powered, dual-fuel vessels with CSSC Huangpu Wenchong Shipbuilding, valued at US$348 million. Additionally, the carrier ordered 50,000 containers from Dong Fang, China International Marine Containers, and Singamas for around US$162 million.

Further expanding its fleet and sustainable shipping capabilities, Evergreen is also seeking quotes for 11 ultra-large, methanol dual-fuel container vessels, each with a capacity of 24,000 TEU, as reported by Alphaliner last week.

Evergreen’s recent container purchase is aligned with its broader fleet expansion strategy. The carrier's growth is also reflected in its financial performance, with net profit for the first nine months of 2024 tripling to US$3.5 billion, driven by a 68% increase in revenue, which reached US$11 billion. This surge in profitability has been largely attributed to the Red Sea crisis, which has propelled container freight rates to levels unseen since the COVID-19 pandemic.

In another milestone, Evergreen officially opened its new home base at Kaohsiung port’s Terminal 7 last Friday. The state-of-the-art, fully automated facility spans 149 hectares and includes five deepwater berths capable of handling up to four 24,000 TEU vessels simultaneously. With an annual processing capacity of 4.5 million TEU, Terminal 7 represents a major investment in Taiwan's maritime infrastructure. The project, which took four years to complete at a cost of approximately US$1 billion, saw significant government funding, with Evergreen contributing the balance.

Source: The Loadstar