The global container shipping industry experienced a profit surge in the second quarter of 2024 to more than $10 billion, reported Bloomberg.
The net income of the world’s leading container carriers, such as Maersk and COSCO, nearly doubled compared to the first quarter of the year, surpassing the $8.88 billion recorded in the second quarter of 2023.
Bloomberg further reported that current quarter profits may be geared toward another “material increase” subsequent to a strong performance in the international goods trade.
The shipping industry experienced a significant boom during the pandemic due to strong consumer demand and COVID-related supply chain disruptions. However, by the final quarter of 2023, the industry recorded a collective loss.
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Currently, shipping lines are seeing a rebound in profits, driven by favourable supply and demand conditions, though these profits remain well below the peaks reached during the pandemic.
Moreover, Houthi attacks in the Red Sea have tightened capacity as vessels have sought longer routes around southern Africa. As a result, container rates have spiked and congestion has increased at some major ports.
Despite those hindrances, handled volumes hit an all-time high last quarter of 46.4 million TEU, surpassing the previous record of 46.2 million from the second quarter of 2021, reported Bloomberg.
The US has seen particularly strong demand, as retailers and importers are stocking up in warehouses driven by concerns over potential new tariffs on Chinese goods and unrest among dockworkers in the US.
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