OSLO-listed MPC Container Ships posted a rise in earnings as it looks to an uncertain year ahead for container shipping.

The feeder boxship specialist said the duration of the Red Sea closure remained the biggest question for the market. But it foresaw no “immediate, full or partial return by liner operators” yet despite the recent Israel-Hamas ceasefire.

MPCC said a return of ships to the Red Sea could cause a short-lived rate spike due to port congestion, before oversupply set in.

But even without this, “the 1.9m teu of deliveries expected in 2025 could see the market balance continue to swing in favour of the shippers as far as freight rates are concerned”.

It was too early to measure the effect of Trump tariffs on global trade. But the company said escalating tariffs could reorganise supply chains and strengthen trade among US partners, “potentially neutralising total container trade impact”.

Supply growth was expected to exceed demand growth by 1.7% in 2025 and 0.5% in 2026, indicating market easing.

Container shipping faced a high 27% orderbook-to-fleet ratio and a wave of new ships on the water.

But the outlook was better for smaller boxships, of 1,000 teu-8,000 teu range, There were 133 on order, compared with an ageing fleet of 1,068 ships older than 20 years, meaning “considerable potential for fleet modernisation”.

The MPCC fleet stood at 59 vessels on December 31, with aggregate capacity of approximately 140,894 teu.

Net profit in 4Q24 was $61.7m, up from $35.7m the same quarter in 2023, while operating revenue fell to $130m, from $152.8m a year ago.

MPCC’s average daily time charter equivalent rates in the fourth quarter of 2024 fell to $25,190, from $27,405 a year ago.

It boasted a solid backlog with 92% of open days covered in 2025 and 64% in 2026. The company had 39 debt-free vessels (out of 59) and a leverage ratio of 28%.

The company expects revenues of $515m-$530m for FY2025 and earnings before interest, tax, depreciation, and amortisation of $290m-$310m.