Shipping companies suffered a combined EBIT loss of $1.44 billion

In the fourth quarter of 2023, several shipping companies collectively reported a combined EBIT loss of $1.44 billion. Maersk recorded a loss of $920 million, Hapag-Lloyd of $252 million, Yang Ming of $109 million, ZIM of $54 million and Wan Hai of $41 million. All recorded EBIT losses during the quarter. Comparing the same group of shipping companies (excluding ONE due to lack of historical data, and including Evergreen and HMM, both of which achieved operating profits in Q4 2023), this was the highest combined EBIT loss in Q4 quarter between 2012 and 2023. The previous highest loss was recorded in the fourth quarter of 2015, at $455 million.

To see profitability (or lack thereof) per TEU shipped, Figure 1 shows EBIT/TEU for 2010-2023 and shows the unprecedented levels of the 2021-2022 pandemic period, while Figure 2 cuts the y-axis at + /- 300 USD/TEU to show developments in 2023.

To analyze profitability per TEU shipped, Figure 1 illustrates EBIT/TEU for the years 2010-2023, showing the unprecedented level during the pandemic period of 2021-2022.

Figure 2 limits the y-axis to +/- 300 USD/TEU to emphasize developments in 2023.

So far we have EBIT/TEU data for five shipping lines, with COSCO missing among those that regularly report on both their EBIT and global volumes. Maersk’s EBIT/TEU of -148$/TEU represents their largest negative EBIT/TEU in the period analyzed.

For Hapag-Lloyd, their EBIT/TEU loss of -84%/TEU is smaller than their only other negative EBIT/TEU of -239$/TEU in 2014-Q4. For ONE, their 2023-Q4 negative EBIT/TEU of -80$/TEU is their first. HMM, on the other hand, recorded a positive EBIT/TEU of $34/TEU in 2023-Q4.

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