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Follow up cosCO shipping collection? Evergreen Marine dispels rumors of no price increase

Eva Shipping's decision to abandon its plan to raise prices in the United States has caused concern in the market. In response to speculation in the industry that it is "following Cosco shipping and not raising prices", Eva Shipping has recently made it clear that the proposed rates are based on price and market demand, rather than following the footsteps of other shipping companies.

 

 

'Each shipping company has its own pricing strategy,' the company said. 'The pricing process has always been based on a comprehensive assessment of operating costs and market demand, and it doesn't follow other shipping companies in adjusting announced rates.'Evergreen wants rates to be reasonable and profitable, not steep.

 

Eva Marine announced on September 15 that it would abandon the price increase plan and maintain the freight rates of $3,700 /FEU for the Western route and $4,500 /FEU for the eastern route.Cosco shipping Terminals had already taken the lead in cancelling the price hike on September 11, and its Hong Kong subsidiary Orient Overseas was quick to follow suit.As a result, some media interpreted Evergreen's decision not to raise prices as "following up" with COSCO shipping.

 

, evergreen Marine further instructions, the company with cosco shipping freight although for ocean alliance members, but the alliance's operation is based on the related course and space for operation on the basis of cooperation, not the market pricing of cooperation, and about the freight rate agreement and follow the violation of the antitrust laws, ocean union members meeting will make the meeting record to submit the relevant authority for the record, evergreen Marine freight is increase and other Marine alliance members.

 

Freight rates on eastern and western routes have continued to climb to record highs in recent months, and are now two to three times cost, as the consolidation market enters its traditional peak season.At present, the freight rate of the Eastern Route is $4,534 /FEU, while that of the western route is $3,813 /FEU.Although rising rates have prompted investigations in both China and the US, and major containerized shipping companies have dropped price increases, industry insiders predict rates will remain high until the fourth quarter.

 

Evergreen is the world's fourth-largest carrier by capacity on U.S. lines.North American routes account for more than 40 percent of Evergreen's operating revenue, so higher U.S. rates have helped the company.Industry insiders expect Eva Shipping to perform better than expected this year, and renegotiation of contract prices in the first quarter of next year is expected to more than double from the start of the year, further supporting 2021 earnings.