Average operating margins for the 9 leading container carriers (in terms of reporting EBIT) fell below 0 to an estimated -3% in Q4 ’23 the first negative result for the industry in 5 years.
It follows extensive red ink in the last 3 months of the year, with 6 out of 9 carriers reporting operating losses in the period.
Among the winners in Q4, Evergreen was a frontrunner, logging a 7% margin, becoming one of only 3 carriers to remain in the black in Q4.
South Korea’s HMM also narrowly avoided a loss, reporting slim container operating profits of $9m and a margin of 0.7%.
China’s COSCO Group will not report full 2023 results for another ten days but is also expected to have a positive.
Overall, the carriers’ average margin remained positive for the year, at around +4%. For the larger companies, margins still remain above those in 2019.
Source: Alphaliner
