The Industry That Profited from the Crisis into a Pandemic is Named
OREANDA-NEWS. The sea freight segment has profited from the crisis triggered by the coronavirus pandemic. Companies' revenues have skyrocketed in recent months to a record level since 2008 as rapidly growing demand for goods and supply chain disruptions have driven up freight costs. Bloomberg writes about this with reference to data from the analytical company Clarkson Research Services.
The economic recovery from the consequences of the coronavirus pandemic was followed by an increase in demand for goods and raw materials. However, ongoing supply chain disruptions prevent some ports from operating as expected. Many ships are delayed, which limits their number and contributes to higher prices for cargo transportation.
The shortage of shipping containers has led to an increase in shipping costs, which now cost $ 14,000 to ship one container from China to Europe, up 500 percent from 2020. Because of this, the transportation of goods has risen in price, but demand still remains high.
Industry Leader A.P. Moller-Maersk A / S has already increased its estimated annual profit by $ 5 billion. At the same time, the major sea container carrier CMA CGM SA announced a freeze on spot rates - immediate payment terms for the deal - in order to preserve long-term relationships with customers. In other words, the company refuses profit, which confirms the growth of the sector's profitability.
In the bulk carrier sector, profits hit an 11-year high on strong demand for raw materials. “Key supply and demand indicators will remain extremely strong in the future,” said Ted Petrone, Deputy Chairman of Navios Maritime Holdings. In his opinion, the price for spot and freight rates will be maintained at a high level.