5 shipyards compete! Evergreen Marine orders 20 15,000 TEU container ships

  With the container shipping market continuing to experience a shortage of ships and containers, and freight rates remaining high, Evergreen Marine, which has seen a surge in profits, officially announced that it will invest up to US\$2.6 billion to order 20 15,000TEU container ships, and will place orders with five shipyards in China, Japan, and South Korea.

Evergreen Marine to Invest US\$2.6 Billion in Ordering 20 More 10,000-TEU Container Ships from 5 Shipyards

On March 22, Evergreen Marine, on behalf of its subsidiary "Qingbiao Shipping," issued an announcement stating that the board of directors has resolved to order 20 15,000TEU container ships, with each ship costing US\$115 million to US\$130 million, for a total transaction amount of US\$2.3 billion to US\$2.6 billion. Evergreen Marine will negotiate with five shipyards—Shanghai Hudong-Zhonghua Shipbuilding, Jiangsu New Yangzi Shipbuilding, Imabari Shipbuilding in Japan, Samsung Heavy Industries in South Korea, and Hyundai Heavy Industries—and select the optimal shipyard to build these container ships.

According to International Ship Network, these five shipyards have long-term cooperative relationships with Evergreen Marine. In 2015, Evergreen Marine ordered its first batch of 11 20,000TEU container ships from Imabari Shipbuilding. In 2018, the order for 20 11,000TEU container ships placed by Evergreen Marine was received by Samsung Heavy Industries and Imabari Shipbuilding, with Samsung Heavy Industries building 8 and Imabari Shipbuilding building the remaining 12. In 2019, Evergreen Marine ordered 4 1800TEU feeder container ships from Hyundai Mipo Dockyard, a subsidiary of Hyundai Heavy Industries Group.

It is understood that Evergreen Marine first revealed plans to order 15,000TEU container ships in the second half of last year, when freight rates on the US route were continuously soaring to record highs, and the 15,000TEU container ship is the "main" ship type for the US route.

In February this year, it was reported that Evergreen Marine would order 20 15,000TEU container ships from four shipyards: Shanghai Hudong-Zhonghua Shipbuilding, Jiangsu New Yangzi Shipbuilding, Samsung Heavy Industries, and Imabari Shipbuilding. Of these, 10 ships from Imabari Shipbuilding were ordered by its subsidiary, Zhengrong Steamship, and will be leased to Evergreen Marine for a long term after delivery; Samsung Heavy Industries will build another 5, and Shanghai Hudong-Zhonghua and Jiangsu New Yangzi will jointly build the remaining 5.

At that time, in response to market rumors, Evergreen Marine responded that its shipbuilding department continuously researches various types of vessels and orders and leases the most suitable vessel types based on market demand. Currently, it is only in the quotation stage, and after negotiations with suppliers are completed, it will announce according to regulations.

Record-High Performance: Evergreen Marine Continues to Order Ships to Expand its Fleet

In recent years, Evergreen Marine has continuously ordered ships, entering a peak period for new ship deliveries starting in 2020, seizing market opportunities and becoming a major driving force for operational growth. Evergreen Marine's recent orders also demonstrate its strong financial strength and optimistic outlook for the future market.

Evergreen Marine mainly operates ocean routes, with 44% in the Americas, 22% in Europe, 23% in Asia, and the remaining 14% elsewhere. Benefiting from the surge in freight rates since the second half of last year, Evergreen Marine's performance has reached a new high, with annual revenue reaching NT\$207.07 billion (approximately RMB 47.46 billion) and after-tax net profit reaching NT\$24.364 billion (approximately RMB 5.584 billion), a new high since 2004.

In the fourth quarter of last year, Evergreen Marine's profit reached NT\$13.42 billion (approximately RMB 3.076 billion), setting a new record for a single quarter.

In January this year, Evergreen Marine's revenue reached NT\$28.435 billion (approximately RMB 6.56 billion), a significant increase of 71.69% year-on-year and a month-on-month increase of 15.68% compared to December last year; after-tax net profit was NT\$7.48 billion (approximately RMB 1.714 billion). Analysts predict that Evergreen Marine's first-quarter profit is expected to surpass its full-year profit last year.

Another reason attracting Evergreen Marine to order ships is that current ship prices are at a low point. According to International Ship Network, between 2008 and 2009, the price of 13,000TEU container ships from South Korean shipbuilders exceeded US\$130 million per ship. In addition, most of the 13,000TEU to 15,000TEU container ships currently in operation were built more than 10 years ago and have relatively low fuel efficiency.

Alphaliner's data shows that Evergreen Marine's current fleet capacity totals 196 ships with approximately 1.312 million TEU, ranking 7th globally. At the same time, Evergreen Marine has the largest number of outstanding orders among the top ten container shipping giants, with 77 ships totaling 719,114 TEU, accounting for 54.8% of its existing fleet. After all outstanding orders are delivered, Evergreen Marine's capacity will increase from the current 1.312 million TEU to 2.031 million TEU, surpassing ONE (currently ranked 6th) and Hapag-Lloyd (currently ranked 5th), making it the fifth-largest container shipping company globally.

In addition to ordering ships to expand its fleet, Evergreen Marine has also made a large investment in ordering new containers. At the end of last year, it announced the purchase of 13,000 containers, and in January, it decided to invest US\$45.414 million to purchase 8,500 containers. Including two other subsidiaries, a total of 44,000 containers of various types were purchased.