Asia Carriers on a High as Freight Rates Continue to Spiral

Surging Demand and Supply Chain Disruptions Fuel Record Profits

Asian carriers are experiencing a golden age as freight rates soar to unprecedented levels, driven by surging demand and ongoing supply chain disruptions. The pandemic-induced e-commerce boom has put immense pressure on global shipping networks, creating a perfect storm for carriers.

Record-Breaking Profits for Carriers

According to the Drewry Shipping Consultants, container freight rates on major Asia-Europe routes have increased by over 500% since the start of the pandemic. This has led to record-breaking profits for carriers, with some reporting quarterly earnings that have surpassed their entire annual earnings in previous years.

For example, Taiwan's Evergreen Marine reported a net profit of $9.6 billion in 2021, a staggering increase of over 900% compared to the previous year. Similarly, South Korea's HMM reported a record net profit of $8.8 billion, a remarkable turnaround from a loss of $1.7 billion in 2020.