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The container shipping industry has reported profits of $5.4 billion in the first quarter of 2024, marking an impressive turnaround following six consecutive quarters of decline, according to liner industry expert John McCown.
According to McCown, longer voyages due to Red Sea diversions have led to a reduction in global capacity by 8%. At the same time, there was a 9.2% rise in volumes in the first quarter of 2024, compared with the same period last year.
McCown pointed out that the unexpected increase in volume significantly bolstered rates, but it’s the Red Sea situation that is proving to be a pivotal factor behind the recent surge in price strength.
Read more in an article from gCaptain.