Investors in container-shipping companies are having an unexpectedly good year as freight rates surge despite the pandemic, thanks to quick capacity adjustments and surprisingly robust demand.
Shares in several major operators have rebounded sharply. A.P. Moeller-Maersk A/S’s nonvoting stock, which at its low point in March was down by almost half for the year, is now roughly flat. The Danish company owns Maersk Line, the world’s biggest ocean carrier.
Hong Kong-listed Cosco Shipping Holdings Co., which controls the world’s third-largest container carrier by capacity, and Taiwan’s Evergreen Marine Corp. are up about 23% and 32% for the year, respectively, after also recovering from steep selloffs.
“Ocean carriers got out ahead of the pandemic,” said Simon Heaney, senior manager for container research at Drewry Shipping Consultants Ltd. “It’s a good year for carriers in terms of profits.”
Drewry now expects the global industry to earn around $9 billion before interest and taxes this year, up 41% from 2019. It had earlier forecast a $3.7 billion loss. If shipping rates say high, Mr. Heaney said, he might lift his forecast further.
