· Multiple carriers have indicated the upcoming fourth quarter or Q4 profits have dropped significantly in part due to rising costs and a drop in overall rates as demand lessons. In total carriers are expected to report a plunge of up to 70% from the third quarter profits. This would be the second quarter to suffer a profit drop in 2022 and although already expected the drop margin is sharper then originally expected in carrier projections.
· ZIM appears to be one of the most affected carriers with a drop of 50-70 percent. As operating earnings are expected to range between $439 million and $739 million. Maersk has also been affected with an estimated 50 percent overall decline. As Hapag-Lloyd is expected to have a 45 percent overall decline in the fourth quarter.
· As mentioned, these changes in profit were expected in the 2022 projection by most carriers, although the profit margin was less than had been projected. As a result of these fourth quarter numbers as well as lower spot rates the contract rates are beginning to fall with.
Wednesday November 30, 2022
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