SIMIC

The newbuildings will cost US$140 million to $160 million each and delivery is expected 2024-2025.

The new containers will cost Evergreen $338.5 million - 27,500 from Dong Fang International Container (Hong Kong), 15,000 from Guangdong Fuwa Equipment and 13,000 from CXIC Group. They comprise 20ft and 40ft units and will be delivered in mid-2022.

Among liner operators, Evergreen now has the most newbuilding orders, with 78 vessels under construction. Alphaliner estimates that Evergreen's orderbook-to-fleet ratio is around 45 per cent.

In September, Evergreen ordered 24 ships from another Chinese shipyard, CSSC Huangpu Wenchong Shipbuilding, twenty 15,000 TEU ships from Samsung Heavy Industries in March and two 24,000 TEU ships from Hudong-Zhonghua Shipbuilding in June, as well as four 24,000 TEU ships from Jiangnan Shipyard that are due for completion next year.

Evergreen president Eric Hsieh said recently: "We never saw such high freight rates and the present situation is quite positive for liner operators' future business prospects."

He believes the runaway increase in freight rates is mainly the result of supply and demand dynamics, adding that in the first eight months of 2021, cargo volumes on the Asia-US west coast and -east coast lanes have risen by 30 per cent and 25 per cent, year on year respectively, buoyed by rising electronics exports.

That has led to Evergreen net profits soaring, the first three quarters this year seeing 1,347 per cent year-on-year increase to $5.69 billion.

Congestion around US west coast ports is also propping up freight rates, as vessel supply has been reduced by 12 per cent due to waiting times.