Session Details

What Will — and Should — Carriers Do With Their Windfall Profits?

Monday, 28 February

3:50 pm - 4:35 pm (PST) / 28/feb/2022 11:50 pm - 01/mar/2022 12:35 am

What will be the long-term impact of carrier profits that Drewry estimates will reach the staggering sum of $300 billion in 2021 and 2022? What difference will it make in the day-to-day experience of customers doing business with container lines? What would customers recommend that carriers do with all that money? The answer is already taking shape. Some carriers, including Maersk and CMA CGM, are using the windfall to pay down debt and invest in end-to-end logistics services such as aircraft and last-mile services. But what about core business processes such as customer service and opportunities to expand capacity and deliver quality service? How do investors believe this rare period of profitability should be seized to ensure a more consistently profitable future? “For me, and for a lot of investors, it is critical the liners use the current cash windfalls wisely to structurally improve their businesses,” said Neil Glynn, head of European Transport/Aerospace & Defence Research at Credit Suisse. “Investments in improving quality need to be matched by improved commercial strategies, e.g. product segmentation and enforcing commitments, to produce a more sustainable situation beyond the pandemic.” 

Session Speakers