‘Oligarchs’ of Container Ships Sowing Seeds of their Own Demise with Huge Profits

9th February 2022

Cargo owner launches broadside aimed at ‘avaricious’ lines that could face major shocks in years ahead. Above AFLOAT captured two giant containerships, OOCL Hong Kong and Maersk Mette at the UK's biggest box-boat port, Felixstowe where also container 'feeder' ships link smaller ports in north-west Europe. Credit: Jehan Ashmore

Container ship operators basking in record levels of profit are storing up trouble for themselves, according to one cargo owner.

Writing in Investment Monitor, Martin Kaspar, head of corporate development at German pipe maker Frankische Rohrwerke Gebr Kirchner, said these all-time high earnings will contribute to the demise of what he called an “oligarchy” of shipowners.

“Shipping companies made huge profits in 2021, but their conduct in this time will only harbour resentment in the coming years,” he writes.

Lines point to higher-than-expected demand due to a rush for products after the Covid-19 shutdowns, and to logistical problems caused by closed Chinese ports due to renewed Covid outbreaks.

“That this is — at best — only a part of the truth, and that the price explosion of shipping rates isn’t merely on account of a lack of containers, becomes apparent when looking at the quarterly results published by shipping companies,” Kaspar added.

Owners such as AP Moller-Maersk have seen earnings jump nearly fivefold from 2020.

Tradewinds has more on the story.

Published in Ports & Shipping

Tagged under

Box boat 'Oligarchs'

About The Author

Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals.

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