2023 Global Shipping Lines' Profits Return to Pre-Pandemic Levels

2023 Global Shipping Lines’ Profits Return to Pre-Pandemic Levels

March 22, 2024

1–2 minutes

COSCO, EBIT, HAPAG, MAERSK, OOCL, scm, TEU, tradlinx, WANHAI, YANGMING, ZIM

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In an industry as dynamic and unpredictable as shipping, it’s critical to understand market trends, such as company financials. On March 21, Alan Murphy, CEO of Sea-Intelligence, released a report analyzing global shipping company profits as of fiscal year 2023.

According to Sea-Intelligence’s analysis, the global shipping industry is facing significant financial challenges. This is because in 2023, all shipping lines experienced a sharp decline in revenue, with profits plummeting from -46.6% to -62.6%. This extreme downturn illustrates the broader impact of the post-pandemic market correction.

In 2023, revenues by shipping line varied by

Looking at performance by company, based on a report published by Sea-Intelligence, ZIM, Yang Ming, and Wanhai posted losses in earnings before interest and taxes (EBIT) in 2023. Maersk, Hapag-Lloyd, ONE, and HMM stabilized with EBITs in excess of $1 billion, but that’s a far cry from the boom years of 2021 and 2022.

Maersk: EBIT of $94 per TEU, more profitable than in the 2015-2019 period.
Hapag-Lloyd: EBIT of $235 per TEU, the highest outside of the pandemic period.
ZIM: -$765 EBIT loss per TEU, the lowest among global carriers, due to non-cash impairment losses in Q3.

Will the industry regain pre-pandemic stability or face new challenges?

While many pundits are calling for a crisis in shipping, annual revenues in 2023 are on par with the 2018-2019 period before the pandemic. In other words, the plunge in global carriers’ revenues in 2023 is more of an effect of the abnormal growth in 2021 and 2022. It’s worth watching more closely to see if this is a period of return to normalcy for the shipping industry, or the beginning of a new set of challenges.

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