Meanwhile, Xeneta Shipping Index reports that long-term contracted ocean freight rates climbed by 7% in March, pushing shipping prices up 96.7% year-on-year. These escalating rates have resulted in high profits for container lines, says an article published in Drewry.
Drewry supply chain
Last year, many realized record annual revenues. A.P. Moller-Maersk, for one, earned a record $61.8 billion in 2021, up 55% over 2020 revenues. Drewry Supply Chain Advisors predicts the container shipping sector will continue its extraordinary profitability cycle in 2022.
At present, analysts see the ocean sector in a state of transition from a major undersupply of capacity toward one that is more balanced between supply and demand. “However, this change will take at least a year to take effect,” comments Thomas Cullen of London-based Transport Intelligence.
In the meantime, Philip Damas, head of Drewry Supply Chain Advisors, sees the industry in the middle of “peak uncertainty,” meaning companies aren’t sure what to expect from consumer demand. “This is making forecasting and planning difficult for ocean carriers, exporters, importers and other stakeholders,” he says.
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Source: Drewry
