Regional Container Lines (RCL) reported weaker first-half 2026 profitability as the ongoing Middle East conflict disrupted shipping activity and reduced container volumes across its network. The carrier handled approximately 1.21 million TEU in the first half, down 8% from 1.32 million TEU a year earlier.
Despite the decline in volumes, RCL’s revenue per TEU increased 8% to US$459, compared with US$427 in the first half of 2025. However, operating profit per TEU fell 3% to US$99, while the company’s operating margin narrowed to 21.6% from 23.9%.
The impact was particularly visible in the second quarter. RCL handled 562,000 TEU, compared with 662,000 TEU in the same period last year, representing a significant decline in cargo volumes.
Revenue for the quarter nevertheless increased to US$299 million, up from US$290 million a year earlier. Higher revenue per container, which rose to US$532 from US$438, helped offset part of the volume weakness.
However, higher revenue per TEU was not enough to prevent a decline in quarterly earnings. Operating profit fell to US$64 million, compared with US$73 million in the second quarter of 2025, while net profit declined to US$58 million from US$64 million.
RCL’s second-quarter operating margin also weakened to 21.4% from 25.1%, reflecting the pressure created by lower cargo volumes and disrupted trade flows.
The Middle East situation has created significant operational uncertainty for regional container carriers, particularly on services connected with the Arabian Gulf and surrounding markets. RCL has previously introduced rate increases for cargo moving to and from the Middle East, Arabian Gulf and Persian Gulf amid disruptions around the Strait of Hormuz.
The latest results highlight the continuing impact of geopolitical disruptions on regional container shipping. While stronger freight revenue per container provided some support, the sharp decline in volumes weighed on overall profitability.
RCL’s performance will remain closely watched as carriers assess the impact of Middle East disruptions, changing trade patterns and freight-rate movements during the second half of 2026.