Evergreen expects to cut the cost of filling containers by 10% compared to last year by the end of the year, with group chairman Bronson Hsieh acknowledging that the market will be consumer-driven this year, as expanding capacity puts pressure on rates.
This has heightened the importance of cost controls, such as cutting costs of filling containers or cutting dock idling charges, as Evergreen tries to maintain its profitability this year, Hsieh said.
Evergreen will also aim to develop its business in emerging markets in Latin America and Southeast Asia, on relatively more consistent expansion of demand in these regions.
Meanwhile, fellow Taiwanese line Yang Ming Marine Transport Corp is looking to the future with more circumspection, with chairman Frank Lu quoted as saying that the lines face continued challenging times before seeing a rebound in 2015 as supply and demand conditions improve.
"It would be a big challenge for the container shipping industry to improve its performance before the end of next year,” Lu was quoted as telling the company’s annual general meeting. He pointed to the failure of several other lines to boost freight rates over the past two months as signalling a difficult year ahead.
However, Yang Ming also aims to break even this year through a combination of cost control and route adjustment, while also hoping to raise freight rates next quarter.
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