BAROMETER. The shipping companies tried to raise freight rates in the final weeks of the year but their hopes were doused by the suspension of new taxes on ships in the United States and China.
The shipping companies’ third quarter financial results confirm that activity is clearly diminishing in the container line sector. The three leading European companies saw their turnover fall year on year during the quarter, while their EBITDAs were virtually reduced by half.
The trend is the same for the world number four, COSCO, which saw its third quarter revenues fall 23.5% on last year despite a 5% increase in cargo volumes. ONE and Yang Ming also reported a deterioration in their results. As usual, world number one MSC did not publish its results but it is clear that it has not been spared by the fall in rates.
A double-edged decision
In October, the shipping companies were still hoping to see a modest increase in freight rates during the final weeks of the year. To achieve this, all the alliances made priority use of the classical instrument of voyage cancellation. There was another factor, however, which was supposed to give their efforts an additional boost: China’s riposte to the United States’ ship taxation measures.
In the end, the trade and economic agreement concluded between President Trump and his Chinese counterpart Xi Jinping at their meeting on October 30 put...
