Taiwan’s Evergreen Marine Corp. reported a sharp 63% decline in second-quarter profit as currency appreciation and falling freight rates overshadowed steady shipping volumes, highlighting the volatile conditions facing global container carriers.
The world’s seventh-largest container shipping company posted net income of NT$10.96 billion ($365 million) for the three months ended June, down from NT$29.45 billion a year earlier. Revenue fell 19% to NT$86.48 billion ($2.88 billion), the company said in a regulatory filing.
The results underscore the challenging environment for Taiwan-based carriers despite recent developments in US-China trade relations, where both countries agreed to slash tariffs to 30% on Chinese goods and 10% on US products for 90 days. The suspension, extended through November 2025, has sparked hopes for renewed pre-stocking demand on trans-Pacific routes.
Evergreen’s troubles stem from a combination of factors: the Taiwan dollar’s strength against major currencies, freight rates that declined roughly 10% year-over-year, and increased carbon fees on European routes that jumped from 40% to 70%. Despite these headwinds, container volumes remained relatively stable compared to 2024 levels.
The earnings decline comes after Evergreen posted record profits in 2024, with revenue climbing to $12.7 billion and net income more than tripling to $3.4 billion, driven largely by longer voyage diversions around Africa’s Cape of Good Hope due to Red Sea disruptions.
For the first half of 2025, Evergreen reported revenue of NT$196.46 billion ($6.55 billion), up slightly from the previous year, while net profit dropped 18% to NT$38.32 billion ($1.28 billion). Earnings per share for the half-year reached NT$17.70 ($0.59).
The company’s stock has faced pressure from currency fluctuations, with the Taiwan dollar strengthening approximately 7% against the US dollar over the past year, according to foreign exchange data.
Industry analysts expect renewed shipping activity during the 90-day tariff pause, with importers likely to front-load inventory due to uncertainty about future trade policies. However, container rates could spike due to pent-up demand, potentially adding to cost pressures for shippers.
Evergreen operates as part of the Ocean Alliance alongside China’s Cosco, Hong Kong’s Orient Overseas Container Line, and France’s CMA CGM, collectively representing 3.8 million twenty-foot equivalent units of capacity.
