Freight carriers have recently experienced a surge in profitability due to a ‘disruptive’ operating model that has emerged in response to external market shocks. This model has allowed liners to capitalise on higher rates, resulting in increased profits but the sustainability of this approach remains uncertain.
While carriers have undoubtedly benefited from the current market conditions, it is crucial to consider the long-term viability of this operating model. The shipping industry is notoriously cyclical, and external factors that have contributed to the current success may not persist indefinitely.