The global container shipping industry experienced a significant profit surge in the second quarter, with earnings exceeding $10 billion, driven by record volumes and rising freight rates. This increase comes on the heels of disruptions in the Red Sea, according to a recent analysis.

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Major container carriers, including A.P. Moller-Maersk A/S from Denmark and China’s Cosco Shipping Holdings Co., saw their net income nearly double compared to the first quarter of the year. The profits even surpassed the $8.88 billion earned during the same period in 2023, as highlighted in a report by industry expert John McCown released on Saturday.

McCown anticipates that profits could continue to rise in the current quarter, given the robust state of international trade. The container shipping industry, which moves 80% of global merchandise, experienced a boom during the pandemic due to high consumer demand and supply chain disruptions. However, this was followed by a collective loss in the final quarter of 2023.

Now, the industry is once again benefiting from favorable supply and demand dynamics. Although profits are not at the heights seen during the pandemic, they are rebounding significantly. The tightening of capacity, partly due to Houthi attacks in the Red Sea forcing ships to take longer routes around southern Africa, has contributed to higher spot container rates and congestion at key ports.

Despite these challenges, global container volumes reached a record high of 46.4 million units in the last quarter, measured in 20-foot containers. This surpasses the previous record of 46.2 million units set in the second quarter of 2021, according to data from Container Trades Statistics Ltd, cited by McCown.

Demand has been particularly strong in the United States, where retailers and importers are increasing their inventories amid concerns over potential new tariffs on Chinese goods and the possibility of a dockworkers’ strike at East and Gulf Coast ports.

“A strike on the US coast, whether widespread or limited to key ports, would severely disrupt container networks across major carriers and could quickly extend beyond US-specific routes,” McCown warned in his report.