According to a new report from John McCown, Blue Alpha Capital, Q2 results for global liner shipping are the highest ever recorded in history of transportation. Seven individual container shipping companies had Q2 net income higher than UPS, consistently the most profitable transportation company in the world.
The combined net income of UPS, Fedex, Union Pacific and JB Hunt in Q2 was $5.5 bln, just 8.6% of the earnings of the container shipping industry. Collectively, the net income to revenue margin of those leading US transport companies was 9.2% in the second quarter of 2022, just one-fifth of the actual container shipping margin.
Comparing liners to the FANG quartet – namely tech giants Facebook, Amazon, Netflix and Google – also highlights the rarefied atmosphere container shipping has entered over the past year.
Container shipping industry profits were 14% higher than total FANG profits in Q4 last year, 103% higher than FANG profits in Q1, and 145% higher in Q2. Moreover, the container shipping industry’s net income to revenue margin of 46.1% in Q2 was four times the overall FANG margin and still almost twice as much if low margin Amazon is excluded.