Container liner profits rise as service reliability to shippers falls
CARRIERS are reporting a strong market into the fourth quarter due to robust profits container lines, reports IHS Media
CARRIERS are reporting a strong market into the fourth quarter due to robust profits container lines, reports IHS Media.
But schedule reliability fell to 65 per cent, almost 15 percentage points down year on year, said the report.
Profits were the best in a decade despite and worsening container imbalances out of Asia that continue to take a toll on the industry.
Maersk Line reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) as US$2.3 billion in the third quarter, an increase of 39 per cent compared to 2019.
French shipping giant CGM CGM grew its EBITDA 68 per cent to $1.7 billion.
Hapag-Lloyd grew its EBITDA 17 per cent to $768 million, and Zim reported a 145 per cent growth to $262 million. Ocean Network Express saw its EBITDA increase 78 per cent to $872 million.
Yang Ming reported an operating profit of $230 million compared to a $38 million loss the previous year.
After the reports, the Sea Intelligence Maritime Analysis expects the industry to achieve an operating profit of $14 billion for the full year.
'Everyone has been surprised by the cargo rebound, and that is why a lot of the supply chains are under pressure. It is difficult for the terminals, for the truckers, there are not enough chassis, we can't find enough ships, boxes are tight. Everyone is affected by this problem at the moment,' said Hapag-Lloyd CEO Rolf Habben.