Evergreen Cuts Costs in US Sales Agency Operations

Over the last 30 years, Evergreen Marine has developed a reputation as a symbol of global growth in the container shipping industry.  As an EMC competitor for many years, it always seemed that despite whatever the economic situation was, Evergreen was growing.

However, today, EMC announced reductions in staff and office consolidation in its US sales organization.  This follows announcements by other carriers, including APL and Maersk in terms of major liner operators who are reconfiguring their operations to meet a souring market demand.  If there was ever a sign that the US economy is in recession, cutbacks by Evergreen are a serious indication.

The JOC published in a related article that EMC net income dropped approximately 46 million dollars through the first nine months of 2008.

EMC as well as other carriers in the Asian markets  have seen results suffer as rates have crashed on key trade lanes.

Evergreen Shipping Agency cuts jobs in US restructuring Updated December 30, 2008 12:44:50 PM The JOURNAL of COMMERCE ONLINE Evergreen Shipping Agency (America), agents for Evergreen Marine Corp., announced today that it will consolidate some North America offices and reduce staff in the face of the downturn in the global ocean shipping business. "The worldwide economic turmoil has created a situation we have not seen in our lifetimes," the company said in a statement to its North America employees. The measures being taken will reduce costs and put the agency on a more sustainable structure moving forward, it said. Affected offices include Baltimore, Charleston, Chicago, Norfolk and Toronto. The agency will close its Salt Lake City office and move work done there to Dallas. The company said a number of new positions will open and agency employees may apply. Severance including salary and benefits will be given to employees whose positions will be eliminated. The changes will be implemented on or before March 15. The company did not say how many jobs are being eliminated. "It is disappointing and disheartening that we are faced with a decision that has also impacted virtually every other carrier in ocean shipping today," an agency spokesperson said. "We are positioning EGA to survive the catastrophic economic crisis and to succeed when we recover from these difficult times."

Eric

Add Freightdawg.com to your social bookmarks!

Comments

[Jean Poole]

Eric,

The NVOCC motto?

"We take valium so you don't have to"

[Eric]

To be honest, Im not that surprised myself. In the last 5 years, anybody who has tried to contact an ocean carrier customer service team has found themselves on hold for hours, or dropped.

This is why NVOCC's have done well with customers who never would have considered them in the past. Its the service aspect above all.

Ocean carriers have become like railroads. If you arent buying the whole ship or very near it, you arent going to get a lot of attention. This is especially true of carriers who grew their fleets to mega size, but have reduced their retail sales forces in exchange for forwarder/NVO support.

I remember the old days when major carriers had full retail sales teams. Those were good days.

Eric

[Jean Poole]

I'm rather unsurprised by this one, Dawg. EISU has not been one of my top shelf carriers. In the Q1/Q2 export explosion they fubar-ed everything I had to let them touch out of necessity.

And now at the end of Q4 and a 400,000 TEU industry layup? Forwarders and NVOs are taking back what is ours. My good-service + good-price carriers will Always get first pick. They are the carriers I am personally vested in seeing stick around.

I't kinda nice, going from begger to buyer - no more 72 hour rate turn arounds, no more arbitrarily thrice rolled cans, etc etc etc.

And if anyone reading this knows of a friendly hooongry container carrier USEC to East and/or West Africa drop an anon comment in any post on mah blawg. MAEU need not apply. Acceptance of classes 2.2, 3, 8 preferred.

[Josh Gauci]

This is a scary sign. From what I have seen, the international transportation market is reeling. Hopefully we will see some recovery shortly.