Carrier Margins Set New Record Outside of COVID Era

Carrier Margins Set New Record Outside of COVID Era

The leading container carriers (the nine largest companies reporting EBIT) achieved average operating margins of over 20% in the second quarter of 2024, a level previously seen only during the COVID pandemic. The average return for these carriers increased from 11.4% in the first quarter to 21.6%, driven by three months of higher rates as shippers accelerated purchases to avoid potential delivery issues later in the year. This shift reflects a move from “just-in-time” to “just-in-case” importing strategies.

This level of financial return was only surpassed between Q4 2020 and Q4 2022, during the peak of the pandemic. The previous quarter’s average margin was already the highest since 2010. In total, the nine carriers recorded operating profits of USD 6.1 billion for April-June, compared to USD 4.4 billion in the same period last year. The 2023 profits were buoyed by strong results from European carriers, whose long-term contracts typically delay reactions to rate changes.