Sea-Intelligence says container line results drop to pre-Covid levels

Date Added: 29 November 2023

Sea-Intelligence says container line results drop to pre-Covid levels

According to the latest Sea-Intelligence analysis, all major shipping lines that report on their financial figures have recorded sharp year-over-year revenue drops in the third quarter of 2023, which is interesting for Davies Turner's comprehensive network of international container shipping services.

With the smallest contraction being -51.8%, it does sound alarming, but at the same time, we have to remember that the Y/Y comparison is against a period of high rates.

To counter this volatility, Sea-Intelligence says instead it compared 2023-Q3 against 2019 on an annualised basis and see that the contraction in 2023-Q3 is an artefact of the abnormal growth in 2021-2022, and the revenues are now really only dropping down to the pre-pandemic levels.

According to Sea-Intelligence data, after the extraordinary highs of 2021-2022, in the third quarter of 2023, the market is seeing EBIT/teu drop in line with the pre-pandemic years.

Sea-Intelligence says that COSCO has been doing well, recording the largest EBIT/teu of USD289/teu, followed by Hapag-Lloyd with USD64/teu, and HMM with USD52/teu. Maersk recorded the smallest negative EBIT/teu of - USD4/teu, whereas ZIM recorded a significant negative EBIT/teu of - USD2,625/teu (with an EBIT loss of USD2.28 billion).

For more information about Davies Turner’s ocean freight forwarding and logistics services, please contact ocean@daviesturner.co.uk or visit the relevant pages of this website.

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