2024 could become the most profitable year ever for shipping companies outside the Covid era, according to the latest data from Blue Alpha Capital, a consultancy firm led by John McCown.
Container shipping reported a total net profit of $26.8 billion in the third quarter, up 164% compared to the second quarter’s results and 856% more than the $2.8 billion profit in the same quarter of the previous year.
The $26.8 billion earned between June and September is more than double what the container shipping industry made in any previous year outside the covid era.
The particularly high profits in 2024 are the consequence of the Red Sea crisis and, in particular, rerouting shipping traffic to the Cape of Good Hope. A choice that carriers were forced to make which led to greater average sailing distances on the east-west trade routes and using more ships, and therefore more capacity, to continue to respect the schedule of the various connecting services.
The sudden reduction in available capacity combined with strong market demand pushed up freight rates, boosting the big carriers’ earnings.
Although it is assumed that a peak was reached in the third quarter, John McCown points out that the financial scenario remains subject to possible new geopolitical disruptions that could also affect the sector in the short-to-medium term.
Translation by Giles Foster
