Taiwan's Evergreen to dismantle a sixth of its fleet

[shamrock]

TAIPEI, July 8 (Reuters) - Taiwan's Evergreen Marine (2603.TW), the world's fourth-largest container line, on Wednesday said it will dismantle a sixth of its fleet over the next four years as it sees no clear signs of an economic
recovery.

Evergreen, which recorded a loss in the first quarter as a result of the economic crisis, plans to take down 31 old cargo ships after they are retired and to sell off the scrap metal, a company official told Reuters. It owns about 180 vessels.

"The shipping industry is facing severe challenges because of the global financial crisis," said the official, who declined to be identified because he was not authorised to speak to the media.

...cont../..

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSTP9729120090708

[Dickyboy]

I vaguely remember seeing a documentry on Evergreen a few years ago. I can't remember the details, but wern't they after a world domination of the container industry or something? Had a Dirty Tricks Dept, and didn't follow the normal conventions of the shipping industry. Their main target at that time was the West Coast US trade as I recall.

[RobW]

For a few years in the late 80's and 1990's Evergreen were indeed the World's largest container carrier. Although their Taiwan-based status became a disadvantage as global manufacturing moved more towards China. Actually the scrapping programme mentioned by their chairman in the first posting began last year and is really just the removal of their ageing G-type (2,700teu) and GX-type (3,428teu) tonnage which are nearing the end of their economic lives - it's not really the big move they make out - also a number of the G-types were sold and chartered back a few years ago so it is not really their decision whether some of these get scrapped anyway. I presume they will replace some of these with further chartered tonnage as, unlike all the other boxship majors, they have no newbuildings on order for their own account and despite the global financial crisis the container industry will continue to grow in the medium and long-term.