World News
Evergreen Expects Operating Costs to Fall 20% on Low Oil Price
Evergreen Group this month said low oil prices could see the shipping industry generate higher profits in 2015, Taiwanese media reports.
Operating costs for the group's marine and air freight businesses could see a reduction of up to 20 percent in 2015 compared to 2014, said Group Vice Chairman Hsieh Chih-chien.
The comments were delivered during the group's annual briefing.
Hsieh added that the group is optimistic about market conditions for its services in 2015, particularly with regard to its U.S. operations.
"Evergreen has been working a lot in the U.S. market, and with more vessels and aircraft to be added into the Taiwan-U.S. network, we are very optimistic about our performance," he said.
Earlier this year, the group announced plans to charter 11 new bunker saving 18,000 twenty-foot equivalent unit (TEU) capacity box ships.
Maersk Line recently said it was not planning to profit from the fall in oil, and bunker, prices as savings would be passed on to customers in lower freight rates.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.00 | 2.00 | 767.50 | 11.50 |
| Rotterdam | 600.00 | 8.00 | 751.50 | 13.00 |
| Houston | 627.50 | 9.00 | 796.00 | 11.50 |
| Fujairah | 649.50 | 0.00 | 889.00 | 0.50 |
| Global 20 Ports Average | 665.00 | 0.50 | 864.00 | 6.50 |
| Global 4 Ports Average | 630.50 | 5.00 | 801.00 | 9.00 |
| Global Average Bunker Price | 722.50 | 2.50 | 922.50 | 3.00 |
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