Container carrier profits soar on record volumes

03 Sep 2024 CW Team

Currently, shipping lines are once again benefiting from favourable supply and demand conditions, leading to a rebound in profits, though these remain well below the pandemic highs. Capacity has become more constrained as Houthi attacks in the Red Sea have forced vessels to take longer routes around southern Africa, contributing to increased spot container rates and congestion at several major ports. Despite these challenges, global volumes reached a record high last quarter of 46.4 million units, measured in 20-foot containers, surpassing the previous record of 46.2 million from the second quarter of 2021, as per figures from Container Trades Statistics Ltd, cited by McCown.

Demand has been particularly strong in the US, where retailers and other importers are increasing their stock levels in warehouses due to concerns about new tariffs on Chinese goods and a potential dockworkers' strike at East and Gulf Coast ports. McCown mentioned in the report that a coast-wide strike, or even a strike at key ports, would significantly disrupt container networks for all the major carriers and could quickly extend beyond routes involving the US.

According to a new analysis, the global container shipping industry experienced a significant profit increase, surpassing $10 billion in the second quarter, driven by record volumes and rising freight rates following Red Sea diversions. It was reported that net income for the world's major container carriers, including Denmark's A.P. Moller-Maersk A/S and China's Cosco Shipping Holdings Co., nearly doubled from the first quarter and exceeded the $8.88 billion earned in the second quarter of 2023. The report, released on Saturday by industry expert John McCown, suggested that profits for the current quarter might also show a further material increase due to the resilience of the international goods trade market. The industry, responsible for transporting 80 per cent of global merchandise trade, saw profits soar during the pandemic amid high consumer demand and Covid-related supply chain disruptions, but returned to a collective loss in the final quarter of 2023, according to McCown's records. Currently, shipping lines are once again benefiting from favourable supply and demand conditions, leading to a rebound in profits, though these remain well below the pandemic highs. Capacity has become more constrained as Houthi attacks in the Red Sea have forced vessels to take longer routes around southern Africa, contributing to increased spot container rates and congestion at several major ports. Despite these challenges, global volumes reached a record high last quarter of 46.4 million units, measured in 20-foot containers, surpassing the previous record of 46.2 million from the second quarter of 2021, as per figures from Container Trades Statistics Ltd, cited by McCown. Demand has been particularly strong in the US, where retailers and other importers are increasing their stock levels in warehouses due to concerns about new tariffs on Chinese goods and a potential dockworkers' strike at East and Gulf Coast ports. McCown mentioned in the report that a coast-wide strike, or even a strike at key ports, would significantly disrupt container networks for all the major carriers and could quickly extend beyond routes involving the US.

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..