Stolt Tank Containers reports decline in third quarter profit ‣ WorldCargo News

Stolt Tank Containers’ operating profit fell about 30.5% year-on-year in the third quarter of 2024 as the company prepares for a difficult market outlook.

Stolt Tank Containers (STC), a subsidiary of Stolt-Nielsen Limited, reported operating profit of $16.6 million for the third quarter of 2024, a significant decrease from $23.9 million in the same period last year. Despite this decline, STC generated revenue of $166.8 million in the third quarter, up slightly from $166.4 million in the third quarter of 2023, thanks to increasing ocean freight rates due to space constraints among carriers and an increase in shipment volume .

SCT attributed the decline in profits to lower transportation margins and lower demurrage revenue, which partially offset the positive impact of increased deliveries. The decline in transportation margins was primarily influenced by higher freight costs from shippers, creating ongoing challenges for logistics companies navigating the current market landscape.

“Space limitations on container ships have limited Stolt Tank Containers’ shipping volumes, but have had a positive impact on margins, albeit at a lower level than last year,” said Udo Lange, Chief Executive Officer of Stolt-Nielsen Limited.

Stolt-Nielsen Limited reported third-quarter net income of $99.2 million, up from $90.1 million in the same period last year, with revenue falling from $694.4 million to $732.8 million million US dollars increased. For the first nine months of 2024, the company reported net income of $303.3 million on revenue of $2.18 billion, compared to net income of $198.2 million and revenue of $2 .12 billion US dollars in the first nine months of 2024 2023.

“The tank container market remains challenging. Although we experienced an increase in transportation margins in the third quarter, margins outside of Europe and spot freight rates from Asia are expected to decline in the near future. Stolt Tank Containers will continue to focus on maintaining margins while increasing volumes. As we approach 2025, container ship congestion and the impact of the International Longshoreman’s Association (ILA) strike will result in some uncertainty regarding volumes to and from the US,” the company commented on the market outlook.