Aggregate Carrier Profitability News

A new report from Drewry Shipping Consultants Ltd., titled "Container Market Outlook," estimates that in 1998 carriers lifted 14.7 percent more cargo than in 1996 (more than 7.2 million teu), but somehow contrived to earn 1.2 percent less revenue. Industry profitability has also declined, with the Asian crisis making 1998 a particularly bad year, and on the main east-west trades Drewry estimates aggregate carrier losses at almost $2.4 billion - a negative margin of more than eight percent. In 1999, carriers, driven perhaps by desperation, have addressed the revenue gap with more aggression than ever before. Massive rises on Asian export…