News / Box carrier profits from cheap oil will 'just fuel freight rate war' as demand sags

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With 13 major ocean carriers having reported their first-quarter results, boosted by a 49% fall in fuel prices and foreign exchange gains from an appreciating US dollar, consultant Alphaliner believes the high profits recorded in the period will only serve to fuel the freight rate war.

Alphaliner calculates that average operating profit margins (OPM) improved significantly in the first three months, compared with the same period of 2014: the industry averaged an OPM of 5%, a great improvement on the negative ...