- Between 2021 and 2023, is the right time to benefit from the current increase in freight rates.
- Under the company’s terms of association, 0.5% of its 2021 net profit will be distributed to employees
Revenue continues to grow strongly
Online retail sales soar as more people change the way they shop due to the pandemic, which boosts shipping demand and leads to a second consecutive year of record revenue for train operators. Most prominent among them is Evergreen, whose revenue has quadrupled, from … to $17.67 billion since 2020. Trans-Pacific shipping volume accounts for 60% – 70% of this, while Asia – Europe freight contributes the remaining.
In 2021, Evergreen president Eric Hsieh announced their net profit had increased ninefold, with $9.5 billion. Vessels Value data also shows that Evergreen has another 10 vessels of 24,000 TEU on order in Hudong-Zhonghua and its subsidiary, Jiangnan Shipyard, for deliveries between this year and 2025.
Earlier this year, Eric defended Evergreen’s decision to invest heavily in orders for dozens of 24,000 TEU container ships. He told shareholders that the delivery of the vessel, between 2021 and 2023, is the right time to benefit from the current increase in freight rates.
“It won’t be easy for rates to drop, so we’re very optimistic about this year,” said Evergreen’s president.
By the end of 2025, Evergreen will have received more than 40 new ships, with a total capacity of more than 550,000 TEUs. According to internal estimates, this will increase its capacity by about 11%.
Profit sharing with employees
Last year, despite the congestion of the Suez Canal, Evergreen Marine Corp. gave some employees year-end bonuses equivalent to 40 months’ salary – a huge bonus that surprised many people. By 2022, Evergreen has also announced that, under the company’s terms of association, 0.5% of its 2021 net profit will be distributed to employees. This number is likely to be higher than the year-end bonus paid in December.
Based on this, the amount distributed to employees is about $47.5 million, Evergreen estimates 2,017 employees, each employee can receive about $23,550 on average.
Thus, this year alone, Evergreen has obtained 33 new-build vessels with a total value of more than 260,000 TEUs, increasing its capacity by 18%. Meanwhile, Evergreen is the fourth largest operator of super-large container ships of over 18,000 TEUs, after MSC, Maersk and COSCO.