“We are anticipating a turnaround this year, as the industry is bottoming out,” Chang told a news conference held in Taipei on Monday.
He noted that the long declining freight rates started to move upward last quarter across major routes, with demand staying healthy during the lean season.
The Shanghai Containerised Freight Index saw rates rose to $830.46 per teu in the week ended 17 February 2017, compared to $486.70 per teu in the week ended 19 February 2016. Rates for the major Asia-Europe trade also rose to $858 per teu from $332 per teu over the same period.
Rates for the US West Coast improved to $1,771 per teu from around $800 per teu a year ago while US East Coast rates increased to $3,214 per teu from around $2,000 per teu.
“There has been a seachange across the container shipping industry, and carriers are beginning to realise that cutthroat price competition is unsustainable,” commented Chang.
The container shipping sector has been consolidating in the face of low earnings and overcapacity. Some notable consolidation deals include the acquisition of Neptune Orient Lines (NOL) by CMA CGM, the merger of Japan’s K Line, NYK and NOL, and the merger of Hapag-Lloyd and UASC.
Evergreen Marine itself is a member of the Ocean Alliance, which includes CMA CGM, Cosco Shipping Lines, and Orient Overseas Container Line (OOCL). The Ocean Alliance is scheduled to start operations in April this year.
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