The container shipping industry is expected to remain profitable despite the downturn Ship’s crew

The container shipping industry experienced a second consecutive profit decline in the fourth quarter of 2022, with net income reaching $34.7 billion, according to the latest quarterly financial results of the container shipping sector by John McCown report.

This represents a decrease of 33.9% compared to the same quarter in 2021 and a sequential decrease of 41.1% from Q3 22.

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

In his report, McCown highlights the impressive margins the container shipping industry has achieved during the pandemic. The industry’s net profit-to-sales margin for 4Q22 was 33.3%, which is 2.5 times higher than the total margin of FANG (Facebook, Amazon, Netflix, Google) and 1.2 times higher than the combined margin by Apple and Microsoft, according to McCown.

While McCown expects industry profit margins to continue to decline in the coming quarters, he estimates that the industry is expected to remain profitable, with estimated 2023 net income of $43.2 billion. However, that estimate represents an 80% drop from the staggering $215 billion earned in 2022.

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