Container shipping sector experiences strong profit recovery in Q2 of 2024
(MENAFN) Global container shipping companies experienced a significant profit rebound in the second quarter of 2024, with earnings surpassing USD10 billion, according to a recent report. This resurgence in profitability is attributed to record trade volumes and elevated shipping prices, a consequence of route diversions following the Red Sea events. Notably, the net income of major players in the sector, including Denmark's AP Moller-Maersk A/S and China's Cosco Shipping Holdings Co, has doubled compared to the previous quarter, and has even exceeded the USD8.88 billion profit recorded in the same period of 2023.
The increase in profits highlights a recovery driven by favorable supply and demand dynamics, although the figures remain below the peak levels seen during the pandemic. The report notes that the sector has faced challenges such as reduced capacity due to Houthi attacks in the Red Sea, which have forced ships to navigate longer routes around southern Africa. This disruption has led to higher spot container rates and congestion at several major ports, further impacting shipping logistics.
Global trading volumes reached a new high in the last quarter of the previous year, hitting 46.4 million units measured in 20-foot containers, surpassing the previous record of 46.2 million units set in Q2 2021. The surge in demand has been particularly strong in the United States, driven by retailers and importers stockpiling goods due to concerns over potential tariffs on Chinese imports and possible dockworker strikes at key ports on the eastern and Gulf coasts.
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