Now the momentum looks set to shift even as uncertainties linger. While container liners have significantly less exposure to the Strait of Hormuz than oil tankers, the escalating war has effectively dashed hopes for a full Red Sea reopening this year, though forecasting remains difficult.
(March 17): Chinese and Taiwanese container liner earnings are showing how the industry is dealing with global ructions as the Iran war dims hopes of a Red Sea reopening and pushes up freight rates, a welcome break after a year of declining profits.
China’s Orient Overseas International Ltd and Taiwan’s Evergreen Marine Corp both reported steep drops in earnings as the prospect of a reopening of the Red Sea shipping route exacerbated oversupply issues that kept rates low for most of last year. Smaller Taiwanese liners Yang Ming Marine Transport Corp and Wan Hai Lines Ltd also saw earnings contract.
