During the peak of freight rates in 2021-2022, there was frequent criticism that the carriers’ high level of profitability was a major cause of inflation. Freight rates were a little over 200% higher at the peak than in the same period in 2019. The shipping lines’ profits in 2021 and 2022 were more than US$400 billion.
However, when these profits are compared to the value of cargo carried, carriers’ profits are incredibly modest. Even when merchandise categories that are typically delivered in...