Container-shipping companies create profit despite Covid-19 recession.

The increase in freight rates have benefited shipping companies for more profitd. It is due to the reduction of fleet supply and volume. Even though economic downturn was forecasted due to low demand of global trade, economic slowdown did not lead to the deterioration of the profits of container ship operators.

In the past, during the 2008 financial crisis, the profitability deteriorated significantly due to deliberate price fall responding on low demand. However, in response of Covid-19, shipping companies operated capacity adjustment instead of price slashing which later triggers profit rise when there is demand for it. Shares rise aftermath.

Source: Shipping Stocks Weather the Pandemic Storm 

https://www.wsj.com/articles/shipping-stocks-weather-the-pandemic-storm-11598868003