EVERGREEN Marine chairman Anchor Chang says the weak global container shipping market should recover gradually over this year as freight rates increase.
"We are anticipating a turnaround this year, as the industry is bottoming out," Mr Chang told a news conference in Taipei.
He noted that the long declining freight rates started to move upward last quarter across major routes, with demand staying healthy during the lean season.
The Shanghai Containerised Freight Index saw rates rose to US$830.46 per TEU compared to $486.70 per TEU in the same week last year. Rates for the major Asia-Europe trade also rose to $858 per TEU from $332 per TEU over the same period.
"There has been a sea change across the container shipping industry, and carriers are beginning to realise that cutthroat price competition is unsustainable," he said.
The container shipping sector has been consolidating in the face of low earnings and overcapacity, noted Colchester's Seatrade Maritime News.
Some notable consolidation deals include the acquisition of Neptune Orient Lines (NOL) by CMA CGM, the merger of Japan's "K" Line, NYK and NOL, and the merger of Hapag-Lloyd and UASC.
Evergreen Marine itself is a member of the Ocean Alliance, which includes CMA CGM, Cosco Shipping Lines, and Orient Overseas Container Line (OOCL). The Ocean Alliance is scheduled to start operations in April this year.