Box shipping industry to make total profit of US$1.5b in 2017: Drewry
LONDON-based container shipping industry consultant Drewry anticipates shipping companies will improve their financial performance this year, despite a loss-making first quarter.
According to Drewry's Container Insight Weekly newsletter, 13 shipping companies that report their financial results publicly suffered a combined operating loss of US$16 million and a negative 0.1 per cent margin in the first quarter of 2017.
That result "compares favourably against the same period in 2016 when the aggregate deficit was close to $500 million, but is hardly a start to the year to make pulses race," Drewry was cited as saying in a report by American Shipper.
"While we were expecting better for the first three months, our profit forecast already built in that the market recovery would only really push on from the second quarter onwards when new contracts roll over," Drewry said.
In its last Container Forecaster, Drewry predicts the container shipping industry will record a combined profit of $1.5 billion this year.
Exceptionally strong demand growth in 1Q17 and far higher annual contract rates will create even more profitable conditions for the remainder of the year than we had envisioned," Drewry added.