Taiwan's Top Three Container Lines See May Revenue Surge; Industry Reports 'Cabin Grabbing'

(Central News Agency, reporter Jiang Mingyan, Taipei, 9th) The three major container shipping lines in Taiwan reported a 20-30% year-on-year increase in May revenue, reflecting the recovery of market freight rates. Industry players stated that European and American importers are accelerating cargo pickups, tightening capacity supply and supporting the recent rise in freight rates. Currently, the shipping market is experiencing a 'cabin grabbing' phenomenon, with intra-Asia routes also following the upward trend, which is expected to continue into the traditional year-end peak season.

Evergreen Marine announced its May consolidated revenue, benefiting from increased cargo volume across various routes and firm international shipping market freight rates. May consolidated revenue was NT$34.656 billion (up 10.51% month-on-month, up 31.41% year-on-year). Cumulative consolidated revenue reached NT$152.527 billion (down 8.31% year-on-year).

Yang Ming Marine Transport reported May revenue of NT$15.104 billion (up 6.16% month-on-month, up 22.22% year-on-year). Yang Ming explained that the main reason was the recovery of market freight rates.

Looking ahead, Yang Ming pointed out that to cope with cost pressures and potential supply chain disruption risks, European and American importers have generally adopted an early-stocking strategy, boosting booking demand, tightening capacity supply, and thus supporting the recent upward trend in freight rates.

Wan Hai Lines announced its May consolidated revenue today at NT$13.804 billion (up 6.75% month-on-month, up 22.9% year-on-year). Cumulative annual revenue reached NT$60.375 billion (up 1.03% year-on-year).

Wan Hai stated that with freight rates remaining at high levels in May, monthly revenue continued its steady growth, marking the second consecutive month of growth. Market freight rates reflect factors such as high fuel prices and rising sailing and operating costs, driving the Shanghai Containerized Freight Index (SCFI) up for six consecutive weeks, stabilizing at a high range, indicating strong support for freight rates.

Wan Hai explained that as global capacity remains tight, the price increase on long-haul routes has been the most pronounced. The market expects intra-Asia route freight rates to follow suit, and the upward trend is expected to continue into the traditional year-end peak season.

Wan Hai also pointed out that the shipping market is currently experiencing a 'cabin grabbing' phenomenon. One of the main reasons is that the 10% temporary tariff imposed by the US on imported goods will expire on July 24, 2026. The market remains uncertain about future policy direction. Before the policy is clarified, manufacturers generally tend to ship goods early to reduce future cost fluctuation risks, boosting short-term transportation demand. This has become a key driver for the rapid increase in freight rates on the US West Coast and US East Coast routes recently.

Wan Hai explained that with the concentrated release of market demand and increased fuel costs for carriers, shipping companies have recently raised base freight rates and various surcharges, driving overall freight rates higher.

Furthermore, Wan Hai noted that geopolitical tensions in the Middle East continue to impact regional supply chains. Affected by the US-Iran situation, the supply of some civilian goods in parts of the Middle East has fluctuated, and inventories have gradually tightened after months of digestion. Against this backdrop, importers are accelerating replenishment arrangements for the UAE and other Gulf countries, driving a recovery in regional transportation demand. The rebound in Middle East market demand, coupled with the continued relative tightness in global capacity, has further widened the supply-demand imbalance in the shipping market. (Editor: Huang Guolun) 1150609