Container carrier profits soar on record volumes
PORTS & SHIPPING

Container carrier profits soar on record volumes

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.

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.

Next Story
Infrastructure Urban

Shivraj Singh Chouhan inaugurates ICAR-IIMR admin block in Ludhiana

Union Agriculture Minister Shri Shivraj Singh Chouhan recently inaugurated the administrative building at the Indian Council of Agricultural Research – Indian Institute of Maize Research (ICAR-IIMR) in Ludhiana, Punjab. During the visit, he interacted with maize stakeholders, farmers, rural development scheme beneficiaries, and women self-help group (SHG) members. He said that under the leadership of Prime Minister Narendra Modi, the government’s key goals include boosting foodgrain production, reducing input costs, and improving farmers’ incomes. He highlighted the importance of div..

Next Story
Technology

Google to Build Rs 10,000 Cr Data Centre in Visakhapatnam

In a major boost to India’s digital infrastructure, Google will establish a 1-GW hyperscale data centre and Artificial Intelligence (AI) hub in Visakhapatnam, Andhra Pradesh. The project, valued at Rs 100 billion, is expected to significantly contribute to the state’s economy and create more than 20,000 direct and indirect employment opportunities. Union Minister of State for External Affairs and Education, Dr Pemmasani Chandrasekhar, highlighted that this landmark investment by Google will help position Andhra Pradesh as a prominent digital hub under the “Swarandhra Pradesh” vision. ..

Next Story
Infrastructure Urban

TCIL honoured with HR Excellence Award 2025

Telecommunications Consultants India Limited (TCIL), a Miniratna Schedule ‘A’ PSU under the Department of Telecommunications, has been honoured with the HR Excellence Award at the Fortune Leadership Awards 2025, held at Radisson Blu Plaza, Delhi. The accolade acknowledges TCIL’s outstanding HR practices promoting employee development, innovation, and inclusivity. The award was presented by Dr. Dinesh Upadhyay, Former Member, Ministry of AYUSH, and Shri M. S. Nethrapal, IRS, and received by Shri P. Suresh Babu, CGM (HR), in the presence of distinguished leaders from various sectors. Bet..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?