Despite rising costs and geopolitical challenges, 2024 is shaping up to be the third most profitable year in container shipping history. Major carriers like Maersk and Hapag-Lloyd have already surpassed full-year profits from 2020 and 2023, thanks to increased cargo demand and longer trading distances.
The Middle East conflict has led to significant operational changes, including rerouting vessels around the Cape of Good Hope. This diversion increased fuel consumption and handling costs, with Maersk reporting a 23% hike in bunker expenses during the first nine months of 2024.
However, carriers benefited from reduced expenses in other areas, such as Suez Canal tolls and war-risk insurance, offsetting some of the rising costs. Additional costs like the EU Emissions Trading System, which added nearly $130 million for carbon offsets, and extra transshipment fees have also pressured finances.
Despite these challenges, longer trade routes have absorbed excess shipping capacity, sustaining a remarkable five-year profit cycle. As global container volumes grow, the industry continues to adapt to evolving trade patterns while maintaining robust earnings.
