(Bloomberg) — Cosco Shipping Holdings Co. saw its earnings increase sharply, with the biggest rise in two years. Ongoing geopolitical issues have altered trade routes, resulting in ships being used for longer periods and a spike in container rates.
In the third quarter, net income jumped 81% to 17.2 billion yuan ($2.6 billion), driven mainly by growth in transpacific sailings, as stated in a filing on Thursday.
Cosco’s impressive performance suggests a strong season ahead for some of its global competitors. Earnings forecasts for Europe’s A.P. Moller-Maersk A/S and Hapag-Lloyd AG have increased since July.
Earlier on Thursday, Japan’s Nippon Yusen KK raised its outlook beyond what analysts had predicted, while Taiwan’s Evergreen Marine Corp. is expected to report its most profitable quarter since 2024 next month.
During the quarter, global supply chains remained strained, as ships continued rerouting their journeys between Asia and Europe around Africa’s Cape of Good Hope to avoid the Middle East.
This situation has pushed spot rates for a 40-foot container close to two-year highs, a trend that persisted for most of the quarter, according to data from the Drewry World Container Index.
Spot rates for containers are expected to remain stable, with transpacific rates staying near post-pandemic highs due to strong trade activity in the US, according to Bloomberg Intelligence analyst Lindsay Chen.