Reported 7 months ago
Despite the UN Security Council's call for a ceasefire in Ha for 6 weeks, both sides did not fully comply with the UN, causing freight rates and capacity issues to extend to October. Evergreen's (2603) stock price ended its 3-day decline and rebounded on June 13. The rise in freight rates and tight capacity was driven by the Red Sea crisis, where merchant ships had to take detours, leading to a capacity crunch and soaring freight rates. Whether the Red Sea crisis will be resolved is a crucial factor when investing in shipping stocks. Evergreen's May revenue was NT$32.16 billion, up by 1.09% monthly and 40.34% annually, totaling NT$152.612 billion from January to May, a 36.16% annual increase. Analysts believe that besides the Red Sea crisis, a sudden variable in May was the shortage of idle containers in mainland China, pushing up freight rates for Far East to Europe routes to $10,000 per 40-foot container, similar to during the COVID-19 pandemic. Evergreen recently invested around NT$11.2 billion to order 6 2,400 TEU dual-fuel methanol ships and purchase an additional 50,000 new containers.
Source: YAHOO