Wednesday, May 5, 2021

Shipping: "Maersk Reports Pandemic-Fueled Record First Quarter"

 From gCaptain, May 5:

The world’s largest container shipping line A.P. Moller – Maersk reported an “exceptionally strong” first quarter, with the company benefitting from strong pandemic-fueled demand and significant disruptions in global supply chains. Strong earnings and growth momentum was reported across all its businesses spanning ocean, port services and logistics.

Overall in Q1, EBITDA increased to $4 billion from $1.5 billion year on year and EBIT to $3.1 billion from $552 million compared to same quarter last year, while revenue improved by 30% to $12.4 billion. Underlying profit during the quarter was $2.7 billion, up from $197 million in the first quarter of 2020.

Maersk said the results reflect the high volumes, up 5.7%, significant increases in freight rates of 35% and lower bunker fuel prices, leading to an EBITDA in its Ocean segment of $3.4 billion compared to $1.2 billion in Q1 2020, and an increase in revenue to $ 9.5 billion from $7.2 billion.

“A.P. Moller – Maersk delivered an exceptionally strong performance in Q1 2021 with record profit for the quarter. The high growth and profitability were driven by solid demand across Ocean, Logistics and Terminals. Strong demand led to bottlenecks and a lack of capacity and equipment, which drove up freight rates to record-high levels,” says Søren Skou, CEO of A.P. Moller – Maersk....


And from Reuters via gCaptain, May 5:

Maersk Says Mega Ships Will Carry Mega Profits Into 2022

Denmark’s Maersk (AMKBY) said on Wednesday it expected its “exceptionally strong” performance in the first quarter to continue for the rest of the year, driven by high demand for shipping containers from China to the United States.

Maersk, which handles about one in five containers shipped worldwide, said there were not enough ships available in the world to meet a surge in consumer demand, resulting in record-high freight rates.

The firm’s shares traded 4% higher at 0921 GMT, near a record high reached last week.

“The situation today is that our customers are trying to meet a very, very high underlying demand, while at the same time rebuilding stock,” Chief Executive Soren Skou told a media call.

Large retailers and producers, including Puma and Signify, have said congestion at ports, container shortages and delays at the Suez Canal were causing problems in shipping products made in Asia to key markets.

Imports into North American from Asia rose 40% in the first three months of the year. Container ships are now waiting 16 days outside the port in Los Angeles to unload, Skou said.

“This is a huge problem for our customers,” the CEO said. “It’s a mess and it will take some time to clear.”

The company set money aside to buy more containers but had no plans to order more ships, he said....