When big profits look bad: Drewry

Container lines have done well during the global pandemic, but are they profiteering from the crisis and can anything be done to prevent more carrier-shipper animosity?

Container shipping lines are one of the few sectors that can be said to be having a good pandemic. Perversely, despite a sudden fall off in demand for their services, lines look set this year to make more money than they have in a long time as their crisis-management tactics (essentially blanking voyages) has paid off handsomely.

In Their latest Container Forecaster report, published at the end of June, Drewry estimates that the industry secured an operating profit (EBIT) of around $1.4 billion and margin of 3.2% in 1Q20, pretty much on par with the same quarter of last year.