Far from declining this year, ocean container carrier profits will increase again as the spreading Omicron variant hammers supply chains and higher freight rates are factored in, according to Drewry, the UK-based shipping consultancy.

With another record for profitability expected to be confirmed by final results in the fourth quarter, Drewry has adjusted upwards its 2021 carrier profit forecast from $150bn to $190bn, alluding to a “remarkable performance” in Q4 2021.

In addition, spot rates are expected to remain high for some time amidst supply chain disruption.

Drewry stated: “We think the current congestion is an opportunity for shipping companies to obtain better and longer contract terms from shippers, who will want to ensure their cargo can be moved and avoid high volatility in prices.” (photo Evergreen)