Con­tainer ship­ping in­dus­try buoyed by ris­ing Asia-Europe trans­port fees


May 1 marks a grand day for the con­tainer ship­ping in­dus­try, as the trans­porta­tion prices for each 20- foot equiv­a­lent unit will go up from US$ 700 to US$ 1,300 in the Asia- Europe ship­ping line, ac­cord­ing to re­ports yes­ter­day. Ev­er­green Marine Corp. ( ) and Yang­Ming Marine Trans­port ( ) are the ma­jor bene­fac­tors in this wave of price in­creases.

The Asia-Europe ship­ping route prices slid in March, and once the in­dus­try re­al­ized it was not per­form­ing well, com­pa­nies cut down their ship­ping sched­ules and in­creased the cargo ca­pac­ity of each trans­port.

The in­dus­try saw the be­gin­nings of a pos­i­tive shift for two weeks in April. The next re­cent two weeks will bring a con­tin­u­ous 10 per­cent growth with Europe im­ple­ment­ing quan­ti­ta­tive eas­ing and a re­cent rise in con­sumer spend­ing.

Busi­nesses are con­fi­dent that money will come rolling in this year as long as the Euro­pean ship­ping line prices rise, along with a pos­i­tive per­for­mance from the U. S and near- sea ship­ping line.

On t he other hand, even though oil prices are ris­ing, it is still only at US$ 314 per ton, a 25 per­cent slide from the pre­vi­ous quar­ter, which benefits both Ev­er­green Marine and Yang­Ming as long as the prices do not rise past US$ 80.

EVA Air­ways

EVA Air­ways’ ( ) board of di­rec­tors an­nounced yes­ter­day that it will be pay­ing US$99 mil­lion to set­tle charges from the U.S. over al­leged vi­o­la­tions States an­titrust law.

The U.S gov­ern­ment had be­gun an in­ves­ti­ga­tion in 2006 on 28 air­lines’ fuel sur­charges be­tween 2000 and 2006. Charges were brought to court in 2007 by the U.S gov­ern­ment, which then sued the 28 air­lines.

The com­pany had al­ready in­cluded US$80 mil­lion in last year’s an­nual re­port, while the re­main­ing US$19 mil­lion will be listed in this year’s first-quar­ter re­ports, which to­tals around NT$580 mil­lion, with a NT$0.15 im­pact on its earn­ings per share.

EVA Air­ways is pos­i­tive about the com­pany’s earn­ings this year as it had paid off the prob­lem­atic law­suit. Even though the com­pany’s earn­ings were af­fected, it is still pos­si­ble for EVA Air­ways to see a sur­plus gain be­cause of low oil prices in the first quar­ter.

of United

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.