Record Q3 profits for shipping lines

Alphaliner reports that container shipping lines enjoyed their best-ever financial quarter in the latest July-September period, with record Q3 earnings that overturned the losses sustained in the same period last year.

The combined operating incomes of the container shipping lines are estimated to have reached US$6bn during this period, compared to operating losses totalling around US$4bn in the same quarter last year.

The recovery has proved to be swift and all major carriers will end this year on a profitable note, following the US$15bn losses sustained in 2009.

Eighteen carriers in the Top 30 list surveyed by Alphaliner earned an average of US$560 per transported teu during Q3, while the average operating income (EBIT) margin reached 15.6%. Amongst the major carriers, only MISC Berhad reported a Q3 operating loss for its container shipping operations.

Overall, the record earnings will however not be repeated in Q4 as seasonally lower volumes and falling freight rates are likely to dent the carriers’ earnings momentum. Average spot rates on the headhaul Asia-Europe and Transpacific routes have dropped 18% since Q3 and will remain weak throughout the remainder of this quarter, as average vessel utilisation will fall below the current 85% level.

Despite the declining load factors, carriers remain profitable and hence still refrain from withdrawing capacity, according to Alphaliner.
(Source:www.container-mag.com)