Global container shipping hit a record in Q3 2024, moving 47 million TEUs which is 2% higher than the previous peak set during the pandemic period in 2021, according to John McCown of Blue Alpha Capital. Data from Container Trades Statistics (CTS) shows that global volumes for the first nine months reached 136.7 million TEUs, up 6.3% year-over-year (y/y) and 1.5% above 2021’s levels.

Higher volumes and higher rate levels have driven significant profit growth. The Q3 revenue per load has climbed 52.5% y/y. Spot rates tracked by the Shanghai Containerized Freight Index (SCFI) have more than doubled from a year ago. Meanwhile, carriers posted a $26.8 billion profit in Q3, up 164% from Q2 and nearly nine times higher than the same period last year. McCown noted that this total has surpassed the container shipping industry’s best pre-pandemic annual earnings by more than double.

Maritime consultancy Drewry projects container shipping will achieve a $50 billion pre-tax profit in 2024, up from $28 billion in 2023. However, the market continues to face challenges which include the Red Sea diversions and potential tariffs of 60% and more on Chinese imports and 10% to 20% on all other imports. McCown warned that the tariffs and a potential ILA dockworker strike in early 2025 could create a “perfect storm”.

Despite risks, carriers remain optimistic about their capacity outlooks in 2025. Red Sea diversions are absorbing capacity, while slow steaming and scrapping measures could balance supply and demand.

Source: Journal of Commerce