Excerpts from an analysis by the Journal of Commerce:
Just when you thought the news couldn’t get worse for global container carriers that lost an estimated $650 million collectively in the first half of the year, it did.The article compares the effectiveness of cost-cutting strategies of ocean carriers with those of surface transportation companies such as rail and trucking.
Beyond the deepening financial losses — the exception being Maersk Line’s exceptional $554 million third quarter profit driven by deep cost-cutting — the news included the ouster of two industry leaders and the retirement of a third.
All of this underscores the weakness that has plagued global shipping markets for three of the last four years, and stands in stark contrast to the financial fortunes among North American surface operators.