Container surplus is expected to decrease significantly
Container shipping companies achieved a total operating profit (EBIT) of 60 billion dollars in 2024, the third-highest result in the industry’s history and the best outside the COVID period.
This estimate comes from the analysis firm Sea-Intelligence, according to Splash247.
This strong performance in 2024 was driven by high freight rates and strong global demand.
According to John McCown from Blue Alpha Capital, the sector is expected to remain profitable in 2025, but with a profit of under 10 billion dollars.
The decline is primarily due to falling freight rates and uncertainty surrounding new tariffs from the U.S. The decreasing freight rates can be attributed to the normalization of supply chains after the pandemic and increased competition among shipping companies.
- If tariffs are implemented, the negative demand shock could turn into a supply shock, leading to inflationary pressure, says the Bank of International Settlements.
The potential tariffs could lead to a redirection of trade flows, which could create further uncertainty in the market.
