Sea-Intelligence Q1 2026 Report: Ocean Carriers' Operating Profits Decline Sharply Under Freight Rate Pressure

The latest analysis of carrier financial performance and cargo volumes, published in Issue 766 of the Sea-Intelligence Sunday Spotlight, paints a challenging financial picture for the container shipping industry during the first quarter of 2026.

A Less Favorable Financial Picture Compared to Last Year

Based on the carriers that have reported financial results to date (excluding HMM, which had not yet released its Q1 2026 EBIT figures; OOCL, which does not disclose quarterly EBIT; and CMA CGM, which no longer publicly reports EBIT), the combined earnings before interest and taxes (EBIT) of the reporting carriers totaled only USD 1.35 billion.

This represents a substantial decline from the USD 5.47 billion recorded in the first quarter of 2025, highlighting a significant deterioration in industry-wide profitability compared with the previous year.

EBIT per TEU: Several Carriers Slip Into Negative Territory

Source: Sea Intelligence

An analysis of EBIT per transported TEU further illustrates the financial pressure facing the industry. Among carriers that disclosed both EBIT and global transport volume data, performance varied considerably.

Carriers reporting positive EBIT per TEU:

●    COSCO SHIPPING Lines: USD 169 per TEU

●    Ocean Network Express: USD 23 per TEU

Carriers reporting negative EBIT per TEU:

●    Maersk: negative USD 30 per TEU

●    Hapag-Lloyd: negative USD 54 per TEU

●    ZIM: negative USD 21 per TEU

Note from the report: The vertical axis in Figure 1 is capped at USD 1,000 per TEU to prevent the exceptionally high profit levels recorded in 2021 from distorting the visibility of trends in subsequent years.

The Market Paradox: Volumes Continue to Grow While Profits Shrink

Notably, the current decline in profitability is not being driven by weakening transportation demand.

In fact, global container shipping volumes have remained relatively resilient. Most carriers reported low- to mid-single-digit volume growth compared with the same period last year.

According to Sea-Intelligence, the primary factor behind the deterioration in profitability has been the significant decline in average freight rates. Data shows that average freight rates among all surveyed carriers fell between 9% and 26% year-on-year.

The combination of lower revenue per transported unit and persistently elevated operating costs has placed substantial pressure on carrier profitability. This also explains why several container shipping companies reported negative EBIT in the very first quarter of 2026, despite continued growth in global cargo volumes.

See more:

• International Shipping and Logistics Market Update Week 22/2026 | Phaata
• COSCO SHIPPING North America Named AgTC’s 2026 Recognized Ocean Carrier
• COSCO schedules: Vietnam - North America in Jun 2026
• COSCO updates Vietnam-Intra Asia sailing schedules in Jun 2026
• COSCO updates Vietnam-North Europe sailing schedules in Jun 2026
• SITC updates Vietnam-Intra Asia sailing schedules in Jun 2026
• Hapag-Lloyd Reports Q1 2026 Loss as Maersk Continues Avoiding the Strait of Hormuz Over Security Risks
• CMA CGM Maintains Resilient Performance in Q1 2026 Amid Geopolitical and Global Supply Chain Disruptions
• CMA CGM Deploys Largest French-Flagged LNG Container Ship on Asia–Europe Trade Lane
• Global Schedule Reliability No Longer Fully Reflects Diverging Conditions Across Asia–Europe Trade Lanes
• COSCO SHIPPING Lines Restarts SKX1 Shuttle Service Connecting Singapore and Kolkata
• MSC Launches Ochna Service to Strengthen Direct China–Vietnam Connectivity

Source: Phaata.com (According to Sea Intelligence)

► Find Better Freight Rates & Logistics Service Providers!