The total net revenue of the container shipping industry amounted to $26.8 billion
Veteran shipping industry analyst John McCown said that in the third quarter of 2024, the container shipping industry experienced a remarkable transformation, with total net revenue soaring to $26.8 billion, a staggering 164 percent increase over the previous quarter.
This impressive growth trend, which began in the first quarter of 2024, is primarily driven by tightening capacity in the Red Sea region and strong global demand.
In his third-quarter financial report, McCown reported that net income soared 8.6 percent compared to the same period last year, representing an increase of $24 billion. This follows six consecutive quarters of declining earnings for the industry after revenue peaked at $63.1 billion in the second quarter of 2022.
While the overall trend is positive, McCown notes that financial performance is increasingly fragmented among operators. While all 11 major companies reported higher net income than the previous year, eight reported lower net income than the previous year. European shipping companies have a riskier market, while the main east-west routes are less concentrated, and this is where the difference is greatest.
McCown's report also highlighted the resilience of global container volumes, which grew by 4.7% year-on-year in the third quarter of 2024. While that represents a slight decline from the growth levels seen in the first and second quarters, it was the fourth-highest quarterly increase in three years.
The industry's recovery was further reflected in the third quarter of 2024, when worldwide loadings (20-foot equivalent units) reached a record 47,121,793, 2.1% above the previous peak of the pandemic.
Figures for the first nine months of 2024 show that the total increased by 6.3 percent from 2023 to 13,6714,259TEU. This figure even exceeds the 1.5% recorded during the pandemic in 2021.
While the third quarter of 2024 appears to mark a peak for the cycle, ongoing geopolitical catalysts and market factors suggest that the financial landscape for the industry is still subject to rapid change in the near term.
This impressive growth trend, which began in the first quarter of 2024, is primarily driven by tightening capacity in the Red Sea region and strong global demand.
In his third-quarter financial report, McCown reported that net income soared 8.6 percent compared to the same period last year, representing an increase of $24 billion. This follows six consecutive quarters of declining earnings for the industry after revenue peaked at $63.1 billion in the second quarter of 2022.
While the overall trend is positive, McCown notes that financial performance is increasingly fragmented among operators. While all 11 major companies reported higher net income than the previous year, eight reported lower net income than the previous year. European shipping companies have a riskier market, while the main east-west routes are less concentrated, and this is where the difference is greatest.
McCown's report also highlighted the resilience of global container volumes, which grew by 4.7% year-on-year in the third quarter of 2024. While that represents a slight decline from the growth levels seen in the first and second quarters, it was the fourth-highest quarterly increase in three years.
The industry's recovery was further reflected in the third quarter of 2024, when worldwide loadings (20-foot equivalent units) reached a record 47,121,793, 2.1% above the previous peak of the pandemic.
Figures for the first nine months of 2024 show that the total increased by 6.3 percent from 2023 to 13,6714,259TEU. This figure even exceeds the 1.5% recorded during the pandemic in 2021.
While the third quarter of 2024 appears to mark a peak for the cycle, ongoing geopolitical catalysts and market factors suggest that the financial landscape for the industry is still subject to rapid change in the near term.
