Earnings of Biggest Shipping Companies Now Rival Apple!
Staff Content Writer
August 25, 2021 • 2 minutes read
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Global container shipping companies generated a staggering 1500% YoY of 2020According to Drewry Maritime Research, the container shipping companies will collectively make $100 billion in operating income in 2021, nearly as much as Apple Inc in a typical year, provided that the freight rates are still surging. Furthermore, AP Moller-Maersk, the world’s biggest shipping line, was expected to make ~$14.5 billion in operating profits, stated by the recent company’s financial report.Due to extremely high freight rates and severe port congestion, the serious shortage of containers has put a strain on the international shipping market, and the impending peak Christmas season may further propel it to higher prices.
Container shipping companies are more vulnerable to political interventionsThe industry’s oligopoly, unreasonable taxation and carbon dioxide emissions have made the industry more vulnerable to criticism, especially in the US. The giant international shipping companies are typically foreign-owned, implying US politicians have less to lose by taking them on.
Container shipping companies should reconsider tax arrangements and develop green techAccording to Bloomberg data, Maersk’s tax rate was less than 5% and Hapag-Lloyd’s tax expenses were less than 1% as well, much lower than the 15% minimum corporate tax rate, which makes large international shipping companies enjoy the windfall without paying corresponding taxes.In addition, container shipping companies account for ~3% of global emissions but do not have a solid restriction for planet-heating pollution. In 2019 the international shipping industry proposed a $5 billion fund in developing more eco-friendly fuels; however, with the enormous profits generated this year, container shipping companies could be more generous.
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