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Evergreen Marine Corp

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Submitted By leroyjin
Words 1379
Pages 6
1.0 Introduction
Evergreen Marine Corporation (EMC) was established on September 1, 1968 (evergreen-marine, 2008). The founder, Dr. Yun-Fa Chang, started the business as a secondhand general cargo ship but he expanded the business to provide his customers with a scheduled marine logistics and transportation services. In 1984, EMC made a remarkable move with a two-way Round-the-World container service (evergreen-marine, 2008). Today, Evergreen provides transport services across the lands of Asia, the Americas, Australia, the Middle East and the Mediterranean. Consequently, EMC had successfully built a strong network across the globe via an advanced IT platform and exhibition logistics with value added services.

2.0 Type of services that EMC provide
Coincidently, EMC is the fourth-largest containerized-freight shipping company, serving the east coast of Asia and the west coast of North America, with over 150 container ships (evergreen-marine, 2008). Its main transportation modes are ships, thus shipping is its main activity. In between, EMC is the pioneer in reefer container service, shipping perishable products across the world. ‘Moreover, Evergreen also provides services such as, freight forwarding, construction of containers, customs brokerage, warehousing, distribution and many more’ (commerce, 2011). ‘In 1992, Evergreen Group expanded its service range to the skies by launching airline EVA Air to the market’ (pancanal, 2002). EVA's planes reflected the technology focused by Evergreen's ships. Due to this advanced factors, EMC had gained a significant long-term advantage over competitors with aging fleets.

3.0 EMC’s Competitive Edge
EMC has several factors that contributed to its competitive edge and strength. EMC has established four transshipment hubs across the world. Besides that, EMC understands that e-commerce is the significant key to compete in the market. Hence, technologies such as, Electronic Data Interchange (EDI), tracking system, E-booking, sailing schedules as well as integrated computer information system had been implemented by Evergreen. Apart from that, EMC has a wonderful routing system connected to each other. Moreover the building of new reefer containers fulfill customer’s needs, customers can ship their perishable items without worrying about its defects. Nevertheless, EMC has a very systematic seafarer training center, the center is fully equipped with modern tools, advanced technologies and professional training from the seniors. Last but not least, ‘EMS is implementing a project call ‘green and continuos’ development that focus on issues such as safety, quality and environmental development’ (evergreen-marine, 2008).

4.1 Global Transshipment Hubs
EMC has invested billions of dollars to build the container hubs in order to expand the functions of terminal utilization and enhance the operational services. Taichung Container Terminal, as mentioned earlier, acts as a transit-hub connecting major ports such as Tokyo, Osaka, Singapore, Port Kelang, and Jakarta (evergreen-marine, 2008). For example, Westport of Kelang has been providing consolidation services to Evergreen since many years ago. Moreover, ‘EMC’s no. 5 terminal, Kaohsiung Container terminal, had produced a total capacity of 2 million TEU annually’ (worldportsource, 2005). In addition, Colon Container Terminal, is the largest hub port for Evergreen, this terminal provides repairing containers services to gain customers’ satisfaction. The terminal is also able to provide a first class service in handling international transportation cargo at the most competitive rates. Lastly, ‘Taranto Container Terminal is implementing an impressive IT solution to control over quay and yard operations’ (tct-it, 2011). To sum up, these value-added services provided by all these terminals has given EMC a priority to compete in the massive market.

4.2 E-commerce
EMC is able to hold a strong market position and impressive shipping operation system is because of its advanced information technology. Although others shipping company is doing the same thing but Evergreens’ has done much more systematically to strengthen their competitiveness. For example, Evergreen has invented an integrated computer information system that links its headquarters to cooperate Evergreen service sites around the world. It has a simplified official world wide website but has up-to-date information to give customers a clear sight on their process, “www.evergreen-marine.com” . One of the most convenient and valuable system can be found in the website is ‘cargo tracking’. Cargo tracking gives customers up-to-date status on all shipments from booking to picking up. In addition, cargo tracking also provides information of whether the shipment goods can get approval from the US’s Customs so that customers can make immediate arrangements in advance.

As to achieve customer-centric perception, EMC has done well in the area of Electronic Data Interchange (EDI); ‘EMC was awarded the first annual award for E-commerce Excellence by LOG-NET. Award presenter, Mr. Morley had highlighted that EMC had performed consistently with specific messages and putting themselves on top among all ocean carriers’ (evergreen-marine, 2010).

‘With its well-designed E-Booking system and schedules via Email’ (evergreen-marine, 2010), it had given customers a convenience platform. Users can approach to the official website to do e-procurement at any time and wherever customers are.

4.3 Evergreen Seafarer Training Center (ESTC)
EMC is of the opinion that its employees are always the most valuable resource, thus Dr. Chang had established the fully equipped ESTC in order to enhance the skills of all the officers and seafarers. As to achieve the center’s objectives, professional training has been taught to develop them into a skillful and knowledgeable worker. For example, seafarers have been trained to manage critical situations such as marine accidents and pirates attacks. ‘In June 2001, ESTC was awarded ISO-9001’ (evergreen-marine, 2010).

4.0 Problems of Evergreen-marine Corporation and its SOLUTIONS

5.4 Overbooking
EMC is currently facing the problem of overbooking and would need a larger fleet of cargo ships to cater to its growing business.

* In order for more growth, the suggested solution is that EMC perhaps should invest in its own a ship building company, in order make their own ships at lower cost. In the meantime, perhaps it should rent more ship.

5.5 Geographical concentration
Currently, the company's flagship services are Asia-orientated, which indicated that EMC promotion/marketing on its services to the Europeans, Americans and Africans sector of the globe has not been effective. Although EMC, a Taiwan based company has many shipping routes that pass through these countries waters or land, EMC is relatively unknown to these countries.

* It is recommended that EMC should change their promoting style, for example, the EMC workers should be given training to speak fluent English Language and do more promotion activities in these parts of the globe, and create a video on the Company, its operations and the benefits of doing business with Evergreen. Let the video do the talking.

5.0 Weakness of Evergreen-marine

6.6 Inefficient Safety Management
‘EMC’s ship was involved in a freak accident on April 21, 2010. The Chief Engineer was killed, trapped in ship’s passenger elevator shaft (longshoreshippingnew, 2010). This incident happened due to bad elevator maintenance. Investigation found out that some safety requirements had been ignored. This was the third severe accident in an 8-month period. EMC’s safety management systems had not met with the international standard, there were failings in its implementation. Last but not least, there is lack of communication among the crew and also with Management which could have led to this accident.

6.0 Closure
In a nutshell, Evergreen-Marine Corporation’s main core competency is having a systematic and efficient IT solution and platform that enhanced its services and this had made EMC to be superior among other ocean carriers. In addition, EMC is picking momentum to improve its existing weaknesses and eliminate threats that block opportunities for further business expansion.

References Evergreen-marine, 2008, viewed 6 June 2011, <http://www.evergreen-line.com/>.

Commerce, 2011, Evergreen Logistics Corp, viewed 6 June 2011, <http://www.commerce.com.tw>.

Pancanal, 2002, Evergreen Marine viewed 8 June 2011, <http://www.pancanal.com/>.

Worldportsource, 2005, viewed 9 June 2011, < http://www.worldportsource.com/>.

Tct-it, 2011, Taranto Container Terminal, viewed 11 June 2011,
< http://www.tct-it.com/>.

Long shore & Shipping news, 2011, media release 5 May, Evergreen UK has 3 ship fatalities in 8 months, viewed 13 June 2011, <http://www.longshoreshippingnews.com/>.

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