Container carrier profits soar on record volumes

04 Sep 2024 CW Team

McCown suggested that profit for the current quarter might also show a "material increase" due to the sustained strength in the international goods trade market. The container shipping industry, which handles 80 per cent of global merchandise trade, had experienced a boom during the pandemic due to high consumer demand and supply chain disruptions caused by Covid-19. However, the sector had recorded collective losses by the final quarter of 2023.

According to McCown, shipping lines are once again benefiting from favourable supply and demand conditions, with profits rebounding, though still far below the levels seen during the pandemic. Capacity had tightened due to Houthi attacks in the Red Sea, which forced vessels to take longer routes around southern Africa, pushing up spot container rates and contributing to port congestion.

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 units from the second quarter of 2021, according to data from Container Trades Statistics Ltd cited by McCown. Demand has been particularly strong in the US, where retailers and importers are stocking up amid concerns over potential new tariffs on Chinese goods and the possibility of a dockworkers' strike at East and Gulf Coast ports. McCown warned that a strike, particularly at key ports, could severely disrupt container networks for major carriers and have far-reaching consequences beyond US-related trade lanes.

It was reported that the global container shipping industry saw profits soar to over $10 billion in the second quarter, driven by record volumes and rising freight rates following Red Sea diversions, according to a recent analysis. Net income for major container carriers, including Denmark?s A.P. Moller-Maersk A/S and China?s Cosco Shipping Holdings Co., almost doubled from the first quarter and surpassed the $8.88 billion figure from the second quarter of 2023, as noted in a report released by industry expert John McCown. McCown suggested that profit for the current quarter might also show a material increase due to the sustained strength in the international goods trade market. The container shipping industry, which handles 80 per cent of global merchandise trade, had experienced a boom during the pandemic due to high consumer demand and supply chain disruptions caused by Covid-19. However, the sector had recorded collective losses by the final quarter of 2023. According to McCown, shipping lines are once again benefiting from favourable supply and demand conditions, with profits rebounding, though still far below the levels seen during the pandemic. Capacity had tightened due to Houthi attacks in the Red Sea, which forced vessels to take longer routes around southern Africa, pushing up spot container rates and contributing to port congestion. 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 units from the second quarter of 2021, according to data from Container Trades Statistics Ltd cited by McCown. Demand has been particularly strong in the US, where retailers and importers are stocking up amid concerns over potential new tariffs on Chinese goods and the possibility of a dockworkers' strike at East and Gulf Coast ports. McCown warned that a strike, particularly at key ports, could severely disrupt container networks for major carriers and have far-reaching consequences beyond US-related trade lanes.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..