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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Real Estate

26 Jun 2026

Platinum Corp Launches Bespoke Presidential Suites

Platinum Corp has launched Platinum Stellar: Bespoke Presidential Suites, a luxury residential project on Main Avenue in Santacruz, Mumbai. The project has been positioned as a boutique, design-led development for high-net-worth individuals, business owners and legacy residents from the Bandra-Khar-Santacruz belt.The project has been developed in collaboration with celebrity interior designer Sussanne Khan and follows a design-first approach inspired by Art Deco architecture. It incorporates refined detailing, spacious layouts, premium material palettes and arrival experiences planned to creat..

Infrastructure Transport

26 Jun 2026

Adani Airport City Plans Rs 200 Bn Investment

Adani Airport City Limited (AACL), a wholly owned subsidiary of Adani Airport Holdings Limited (AAHL), has announced a programme to develop integrated airport cities across its airport network. The first phase will involve an investment of more than Rs 20,000 crore and cover around 22 million sq ft across Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati.The development spans over 655 acres across six airports in five states. Nearly 440 acres are located in Mumbai and Navi Mumbai, which will receive close to 70 per cent of the planned investment. The focus reflects the Mumbai Metrop..

Infrastructure Urban

26 Jun 2026

Vedanta contributes Rs 627.22 billion to exchequer

Vedanta Limited contributed Rs 627.22 billion to the exchequer in FY26, according to its 11th Tax Transparency Report. The contribution accounted for 36 per cent of the company’s consolidated revenue from operations and reflected its focus on transparent governance, fiscal discipline and nation-building.The FY26 contribution marked a 13.3 per cent increase over the previous year. Vedanta’s cumulative contribution to the exchequer over the past decade reached Rs 4.83 trillion. The company said the Group ranks among India’s top three private-sector contributors to the national exchequer.Th..