Blankety Blank – a commercial or structural game?
Trans-pacific and Suez hold the answers
Photo: © Kamontad123 | Dreamstime.com
By Mike Wackett
After better-than-expected first-quarter results, ocean carriers have upgraded their financial guidance, despite the impact of the pandemic.
However, they are being accused in some industry circles of “profiteering from the crisis”.
Container spot rates have soared on the major tradelanes as aggressive carrier capacity management strategies have kept space tight, which, coupled with a collapse in the price of bunker fuel, is driving liner profitability.
On the accusations, Drewry said that, “given the highly unpredictable outlook for demand”, it was “inclined to give ...
Comment on this article
Gary Ferrulli
July 07, 2020 at 4:40 pmThink of that, the carriers may make money one year in a row, and someone thinks that is profiteering. Never mind that collectively they lost between $25. and 30 Billion over the last 10 years, focus on this one year where they might collectively make $1.5 Billion.
The real fear should be that the carriers have finally decided to manage their business as a business, making consistent profits so as to sustain themselves and re-invest without governments subsiding them.
Jacob Clark
July 08, 2020 at 5:25 pmThis is true, according to some estimates, they totally lost even more than thirty million dollars. And this is simply not a quality business, unfortunately. After all, a whole structure, with which it is already ready, which can really bring a good and large monthly and annual income. But this structure is not perceived as a business unit. I think that it would be important in reality. And I would like to believe that it will still work.