Russian transport and logistics group FESCO recorded strong container-volume growth in the first half of 2026, but the increase in cargo throughput was accompanied by a sharp deterioration in profitability.
FESCO handled 377,000 TEU during H1 2026, up 22% from 309,000 TEU in the same period of 2025. Liner logistics revenue increased 8% to RUB 83.8 billion (about US$1.1 billion).
International container volumes rose 18% to 302,000 TEU, representing around 80% of the group’s total. Domestic container traffic grew even faster, increasing 42% to 75,000 TEU, compared with 53,000 TEU a year earlier.
Despite the stronger volumes, profitability weakened significantly. FESCO’s liner logistics segment result fell 60% to RUB 1.7 billion, while consolidated net profit across the group plunged 95% to RUB 60 million.
The results underline a widening gap between FESCO’s operating growth and financial performance. Higher container volumes and revenue have not translated into comparable earnings gains, indicating continued pressure on margins across the group’s transportation and logistics activities.
FESCO’s growth is also taking place against a changing Russian container market. The company’s 2025 annual report noted that the Russian market contracted 5.7% in 2025, although loaded export volumes increased 8.7%. FESCO expects container shipments through Russia’s northwestern corridor to continue recovering and also anticipates further transit growth between Belarus and CIS markets.
The group is simultaneously adapting to regulatory and cost changes. From September 1, 2026, mandatory electronic transport bills of lading came into force in Russia, with FESCO estimating that the adaptation phase could raise operating costs by 15–17%.
For the shipping and logistics sector, FESCO’s H1 performance highlights the contrasting trends currently shaping the Russian market: container demand and traffic volumes are expanding, while profitability remains under significant pressure.