The latest report published today by market leading analysts
Transport Intelligence (Ti), Global Shipping Leaders 2007, has
revealed that whereas revenues of the major shipping lines almost
doubled between 2002 and 2006, average operating margins rose by just
1.2 percentage points to 3.4 percent. However this small increase
masks a rollercoaster ride over the past five years when margins rose
as high as 11.6 percent at their peak in 2004
The sharp fall in margins in 2006 was caused by the levels of
new-build shipping capacity which the shipping lines had added to
their fleets to exploit the high volume growth, mostly out of China.
The softness in the rates which resulted, combined with significantly
rising costs, hit the bottom line of every container shipping carrier.
Profits have only stabilised due to consistently strong levels of
demand and according to John Manners-Bell, Ti's Chief Analyst, things
could have been much worse.
'Although margins shrank back to around 2002 levels, the industry
was inadvertently helped due to the difficulty that shipbuilders had
in responding to demand,' he commented. 'Consequently the
demand/supply ratios have remained stronger and relatively few
shipping lines sank into the red. Early signs are that this year will
see a rebound due to firmer rates and continued volume growth.'
Global Shipping Leaders 2007 details the shipping lines which have
been most successful over the period. It examines the industry using a
range of indicators such as slot capacity, revenue, profitability and
margin growth. In addition it provides company profiles of the leading
container shipping lines, including corporate overview; breakdown of
financial data; operational analysis; examination of their strategic
goals as well as key mergers and acquisitions.
About Transport Intelligence
Headquartered in the UK, Transport Intelligence is the world's
leading provider of expert research and analysis dedicated to the
global logistics and express industry. Utilising the expertise of
professionals with many years experience in the mail, express and
logistics industry, Transport Intelligence has developed a range of
market leading web-based intelligence portals, reports and tailored
consultancy services used by the world's leading logistics suppliers,
consultancies and banks as well as many users of logistics services.
For more details go to www.transportintelligence.com
