This corporate earnings story centers on Chinese container carriers, which are heading for a profit increase after global freight rates climbed to a two year high. The Drewry World Container Index more than doubled during the second quarter and peaked at 4,639 dollars per 40 foot container in the week ended July 9.
Bloomberg Intelligence expects Cosco Shipping Holdings and Orient Overseas International to follow Taiwanese carriers Evergreen Marine and Yang Ming, which recorded their strongest earnings growth in more than a year. South Korea’s HMM also ended four consecutive quarters of declining container revenue, while major European carriers raised guidance.
Rates rose as exporters brought cargo forward before United States tariff changes in late July, while diversions and congestion continued to absorb vessel capacity. Transpacific rates from Shanghai to Los Angeles and New York have reached their highest levels since the start of the year.
Citi analysts expect inventory restocking in Western economies to support demand through the second half and keep rates above profitable levels, even as more ships enter service through 2028. Earnings could weaken if congestion eases, disrupted routes normalize, or uncertainty around the United States and China trade truce reduces cargo volumes after October.