Revenues of the major container shipping lines nearly doubled between 2002 and 2006, but profits rose by only 1.2 - 3.4 per cent, according to an analysis from the UK's Transport Intelligence (TI) news agency.
Profits went up and down over the past five years, reaching a high of 11.6 per cent in 2004. TI attributed the 2006 decline to record newbuildings as container volumes rose, dragging down rates and raising costs. Profits, TI said, stabilised because of consistent strong demand.
"Although margins shrank to 2002 levels, the industry was inadvertently helped by shipbuilders' inability to keep pace with demand," said TI analyst John Manners-Bell. "Consequently the demand/supply ratios have remained stronger and relatively few shipping lines sank into the red. Early signs are that this year will see a rebound due to firmer rates and continued volume growth."
Profits went up and down over the past five years, reaching a high of 11.6 per cent in 2004. TI attributed the 2006 decline to record newbuildings as container volumes rose, dragging down rates and raising costs. Profits, TI said, stabilised because of consistent strong demand.
"Although margins shrank to 2002 levels, the industry was inadvertently helped by shipbuilders' inability to keep pace with demand," said TI analyst John Manners-Bell. "Consequently the demand/supply ratios have remained stronger and relatively few shipping lines sank into the red. Early signs are that this year will see a rebound due to firmer rates and continued volume growth."