7 min readChapter 1

Origins

The post-World War II era ushered in a transformative period for global commerce, characterized by burgeoning international trade volumes and a burgeoning demand for efficient transportation networks. The establishment of the Bretton Woods system and the General Agreement on Tariffs and Trade (GATT) created a more stable and open environment for international exchange, stimulating economic growth and intercontinental trade flows. Against this backdrop, Taiwan, experiencing rapid industrialization and export-driven growth, became a focal point for new business ventures, particularly in maritime shipping. Following significant U.S. aid and a series of strategic economic policies implemented by the government in the 1950s and 60s, Taiwan transitioned from an agrarian economy to a formidable manufacturing hub. Industries such as textiles, footwear, plastics, and increasingly, electronics assembly, saw exponential growth, necessitating reliable and cost-effective channels to reach international markets. This period, often referred to as Taiwan’s “economic miracle,” created an unprecedented demand for outbound shipping capacity.

The existing shipping landscape in Asia at the time was largely fragmented, dominated by traditional breakbulk cargo vessels and a nascent but promising shift towards containerization. Breakbulk shipping involved manually loading individual crates, barrels, bags, and pallets onto a vessel’s hold, a laborious and time-consuming process. While prevalent, it was inherently inefficient, prone to cargo damage, theft, and protracted port stays. Liner services, which offered scheduled sailings, existed but were often operated by larger, established Western carriers primarily concentrated on major East-West trunk routes, leaving regional Asian trade lanes and smaller exporters underserved. The revolutionary concept of containerization, pioneered by Malcom McLean in the mid-1950s, was still in its infancy globally, primarily concentrated on lucrative transatlantic and transpacific routes connecting major economic centers like the U.S. East Coast with Europe, and later, the U.S. West Coast with Japan. Infrastructure for container handling—specialized cranes, container yards, and intermodal connections—was virtually non-existent in most Asian ports outside of a few key Japanese terminals.

It was within this dynamic environment that Chang Yung-fa, the visionary figure behind Evergreen Marine Corporation, conceived of his enterprise. Born in 1927 in Yilan, Taiwan, Chang Yung-fa's early life and professional trajectory immersed him deeply in the intricacies of the maritime industry. His academic background included studies at Taipei Commercial High School, where he focused on commercial subjects and accounting, providing him with a foundational understanding of business operations. His career commenced at the age of 18 as a clerk in a local shipping company, a role that placed him directly at the heart of daily maritime operations. Through diligent effort and an acute observational capacity, he advanced steadily, acquiring comprehensive experience across various facets of shipping operations. His roles encompassed diverse responsibilities including vessel management, cargo documentation (manifests, bills of lading), customs clearance, port logistics coordination, chartering, and sales. These formative years cultivated a profound understanding of both the operational challenges and the latent opportunities within global shipping, providing him with an unparalleled grassroots perspective of the industry.

Chang Yung-fa’s expertise was particularly honed during his tenure with several shipping firms, including the Taiwanese shipping agency Hsin-Feng Company and later as general manager for the local branch of an international shipping firm. During this period, he gained critical insights into the limitations of prevailing shipping models. He observed the profound inefficiencies inherent in breakbulk cargo handling—the laborious manual loading and unloading that could extend port stays for days or even weeks, the multitude of handling points increasing the risk of damage or loss, and the high labor costs associated with sorting and securing disparate cargo units. These inefficiencies directly translated into higher operational costs for carriers and unpredictable transit times for shippers. This direct exposure fueled a conviction that a more streamlined, standardized, and customer-centric approach was imperative for future success in the sector. His motivation was not merely entrepreneurial ambition but a strategic recognition of the impending global shift towards more integrated and reliable liner services, particularly for the burgeoning East Asian export economies that desperately needed dependable transport links.

By the mid-1960s, despite the nascent stage of full containerization in Asia and the significant capital investment required, Chang Yung-fa began to articulate a business concept centered on a more efficient and reliable shipping service. He envisioned a company that could offer reliability through fixed schedules and guaranteed departures, a stark contrast to the often opportunistic and less predictable nature of tramp shipping, which operated on demand rather than fixed routes. The initial value proposition was rooted in providing superior service quality for general cargo, focusing on meticulous handling, faster turnaround times, and consistent scheduling even with conventional breakbulk vessels, with a clear long-term vision towards eventually adopting advanced shipping technologies like containerization. However, securing the necessary capital and vessels presented a significant hurdle. Established financial institutions were often hesitant to back new entrants in a capital-intensive industry, particularly one contemplating significant technological shifts. The perceived risks of new competition against entrenched carriers, both local giants like China Merchants Steam Navigation and Yang Ming Marine Transport Corporation, and international players like Maersk and P&O, made securing funding particularly challenging.

Despite these formidable financial and competitive challenges, Chang Yung-fa persisted in his endeavor to establish an independent shipping line. He leveraged his extensive personal network within the shipping community and local business circles, securing initial capital through a combination of personal savings and loans from acquaintances and friends. This initial capital amounted to approximately NTD 20 million (equivalent to about $500,000 USD at the time), a testament to his reputation, credibility, and persuasive capabilities within the industry. This foundational financial backing allowed for the acquisition of a single, secondhand general cargo vessel, the "Central Trust," a 15-year-old, 6,000 deadweight tonnage (DWT) vessel. This initial acquisition was a critical step, enabling the company to commence operations and begin building an operational track record. The vessel, subsequently renamed "Ever Trust," became Evergreen Marine's inaugural ship, sailing under the newly formed company's flag.

Records indicate that the decision to formally incorporate Evergreen Marine Corporation took place in September 1968. The initial operations involved a small core team, likely fewer than a dozen administrative staff in the office, in addition to the crew of the "Ever Trust." The name, 'Evergreen,' was chosen to reflect the company’s aspiration for enduring growth and vitality, embodying a long-term vision in a highly competitive and cyclical industry. It symbolized sustainability and continuous development, principles that would guide the company's trajectory. The establishment of Evergreen Marine Corporation marked a pivotal moment, transforming a visionary concept into a tangible corporate entity, ready to embark on its operational journey with its inaugural vessel. The initial strategy focused on regional trade routes, specifically connecting Taiwan with ports in Southeast Asia such as Saigon (Vietnam), Bangkok (Thailand), Singapore, and Jakarta (Indonesia). These routes were characterized by high demand from Taiwan’s rapidly expanding export sector and were less dominated by major international carriers, offering an entry point for a new, agile operator. This foundational period laid the philosophical groundwork for a company that would eventually challenge established paradigms in global maritime transport, characterized by an emphasis on efficiency, reliability, astute cost management, and an ambitious outlook on technological adoption. The strategic focus on disciplined operations and incremental expansion would prove crucial as the company navigated its initial years in the complex world of international shipping, preparing for a future that demanded both resilience and foresight.