TAIWAN's Evergreen, the worst performer of the country's big three carriers, posted a profit decline of 80 per cent to TWD48.5 million (US$1.6 million) during third quarter, attributing losses to rate hikes failing to stick and revenue declines to TWD4 billion strenuous cost reduction.

Smaller rivals, Yang Marine Transport reported a profit decline of 62 per cent to TWD1 billion, while Wan Hai Lines profit declined 29 per cent to TWD29.4 million year on year.

Evergreen defended its fleet renewal programme following industry criticism that the country's largest carrier had hurt profit in reckless capacity increases.

It suffered loss despite slight revenue erosion in the third quarter after it clawed back from significant loss of TWD569.3 million in the second quarter.

It justified the delivery of 45 newbuildings between 2012 and 2015 in the redelivery of 54 chartered-in vessels, according to a letter to Paris-based Alphaliner.

The carrier added that it held small stakes in major shipping routes unlike other carriers that enjoyed larger shares.

The third quarter represented a return to black for both Evergreen and the second-largest carrier Yang Ming when both suffered losses due to the rate collapse. Yang Ming Transport's second quarter was down by as much as TWD2.6 billion.

In contrast, Wan Hai Lines, was able to soften the blow of a revenue decline of TWD1 billion by significant cost reduction of TWD1.5 billion to TWD14.2 billion. This was supported by its active intra-Asia trade, which is less vulnerable to volatile Asia-Europe and transpacific pricing.