PRESS ROOM

As a provider of international container shipping services, the U-Freight Group, notes an article on the G-Captain website that predicts that the container shipping industry will remain profitable.

The article reports that John McCown’s latest Container Shipping Sector Quarterly Financial Results report suggests that the container shipping industry experienced a second straight earnings downturn in the fourth quarter of 2022, with net income reaching USD34.7 billion.

This represents a 33.9% decrease from the same quarter in 2021 and a 41.1% decrease sequentially from the third quarter of 2022.

The decrease follows seven consecutive quarters of record net income for the sector, peaking in the second quarter of 2022.

G-Captain says that in his report, McCown highlights the impressive margins achieved by the container shipping industry during the pandemic. The industry’s net income to revenue margin for the fourth quarter of 2022 was 33.3%.

That is 2.5 times higher than the overall margin of FANG (Facebook, Amazon, Netflix, Google), and 1.2 times higher than the combined margin of Apple and Microsoft, according to McCown.

While McCown anticipates that the industry’s profit margins will continue to decline in the coming quarters, he estimates that the industry is expected to remain profitable, with estimated net income for 2023 at USD3.2 billion. However, this estimate represents an 80% decrease from the staggering USD215 billion earned in 2022.

You can find more information about the U-Freight Group’s ocean freight services by visiting our website or speaking to your usual contact in our company.