Maersk sees profits fall, but stays in the black
Maersk, the world’s largest container shipping line, has published its results for the first half of 2011 revealing an increase in revenue of 6.6% to $12,154m. The shipping line made a profit of $0.4bn (2010 – $1.2bn) and a ROIC of 4.5% (13.9%). Although significant reductions over the same period last year, unlike many of its competitors, the company is still in the black.
Management said that the supply of new shipping capacity reduced rates and this, combined with high bunker prices, set margins under pressure. The number of containers carried increased, however, by 6% to 3.8m FFE (Forty-foot equivalent), while average freight rates, including bunker surcharges, were 3% lower than in the same period last year. Excluding bunker surcharges they were 8% lower.
Volumes on the head haul routes between Asia and Europe increased by 5% compared to the first half of 2010, while volumes on the back haul routes increased by 20%. Overall, volumes between Asia and Europe increased by 9%. On the Africa and Latin America trades, volumes increased by 13% and 12%, respectively, while volumes were lower on the Transpacific (-6%), Transatlantic (-2%) and Oceania (-8%) trades.
The group expects global demand for seaborne containers to grow by 6-8% in 2011. The global supply of new tonnage is expected to grow more than the freight volumes especially on the Asia to Europe trade. Freight rates will remain under pressure, and high bunker and time charter costs are expected to continue to impact margins negatively. Management still expects a modest positive result.
Meanwhile, AP Moller-Maersk’s logistics division, Damco, saw ocean volumes and airfreight tonnage both increase by 11% compared to the same period of 2010. Supply chain management volumes were 2% lower than same period last year, which management said reflected less inventory re-stocking compared to 2010. Damco’s revenue for the first six months of the year rose by 3.3% to $1,417m whilst EBIT for the period increased 20% to $36m ($30m).
Quelle: eyefortransport
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