Evergreen is to raise its transpacific contract rates for 2025, announced president Wu Kuang Hui on Friday, due to global supply chains being impacted by the impending dockers’ strike on the US east coast, reports The Loadstar.
Contract rates
Despite warnings that the east coast ports strike could hit rates across the board, the Biden administration has stated that it will not intervene to prevent industrial action from happening.
Meanwhile, the ports on the US east coast, including New York/New Jersey, have made contingency plans in case of a strike, which could happen on 1 October, the day after the International Longshoremen’s Association’s current six-year labour agreement ends.
Mr Wu said: “Depending on how long the strike lasts, it will mean higher costs for shipping companies, and customers will encounter great challenges in shipments. We have reminded customers to discuss shipments and delivery times with us.”
While he acknowledged that freight rates had been falling, he attributed this to the early start of the traditional third-quarter peak season, and said trade demand continued to be stable.
Evergreen’s net profit rose nearly four-fold in H1 24, to TW$46.84bn (US$1.44bn), and Mr Wu said he was unfazed by the recent correction in freight rates, adding:“Evergreen’s cooperation with the Ocean Alliance is very smooth. Many long-term contracts have been signed and the price is less subject to fluctuations in spot freight rates.
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Source: The Loadstar
