SIMIC

The effect on container shipping has been to raise average rates per TEU, maintaining revenues at high levels even as demand waned, reports London's Loadstar.

Both European carrier Hapag-Lloyd and Taiwanese operator Yang Ming have benefited from the disruptions to supply chains and showed elevated revenues. In Yang Ming's case, the first nine months brought in US$10.79 billion, against $7.25 billion in the same period last year.

Hapag-Lloyd reported revenue of $28.44 billion, against $17.9 billion in 2021, on volumes that were very similar - 7.99 million TEU this year and 7.98 million TEU in 2021.

In its earnings report, Hapag-Lloyd said average freight rates made the difference, increasing to $2,938/TEU, from $1,818 last year, and rates were also bolstered by a stronger US dollar.

And average rates holding up over the first nine months of the year allowed Yang Ming to record a 50.95 per cent increase in its profits after tax, which reached $5.66 billion. Hapag-Lloyd reported group profits of $14.7 billion.

Hapag-Lloyd CEO Rolf Habben Jansen reported in the company statement that the strong performance was due to the elevated rates.

"However, we are also seeing that the market environment has deteriorated further in the third quarter. This is evident, for example, in falling spot rates and rising inflation-related unit costs," he said.

Yang Ming said: "The Russia-Ukraine war and global inflation surge had an impact on the container shipping industry. The unresolved port congestion and stalled US west coast contract negotiations added uncertainty in the supply chain."