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A.P. Moller-Maersk issued the strongest sign yet of a turnaround in the shipping industry on Wednesday, forecasting it expects to turn a record profit of around USD$5 billion (NZD$6.4 billion) this year on surging ocean container volume and freight rates, according to the Journal of Commerce.

The parent of the worldโ€™s largest container ship operator said it earned a $4.2 billion net profit in the first nine months of 2010, a dramatic reversal from the $700 million the Danish transport and energy group counted in the same period a year ago. The gain included a $1.68 billion net profit in the third quarter ending Sept. 30.

โ€œThe result is exceptional, and we are very satisfied,โ€ Nils Andersen, chief executive of the Copenhagen-based company was quoted saying.

Revenue in the nine months ending in September climbed 17% from a year earlier to $41.4 billion.

Ocean carrier Maersk Line accounted for more than half the groupโ€™s earnings in the first nine months, swinging to a $2.25 billion profit from a year-earlier loss of $1.59 billion.

Container traffic grew 7% in the first three quarters. to 10.8 million 20-foot equivalent units and average freight rates per 40-foot container surged 34% to $3,075.

โ€œMarkets have been favorable, but first of all, our businesses are in excellent shape,โ€ Andersen said. โ€œEspecially our container business has improved and is ahead of the competition on profitability. We are ready to seize opportunities, especially in emerging markets.โ€

The forecast of a 2010 profit โ€œin the order of $5 billionโ€ was the third upward revision in four months, driven by higher ocean freight rates, and would top the companyโ€™s previous record profit of $4.69 billion in 2004, the report said.

Maersk Line is notifying trans-Atlantic customers of three increases in freight rates planned for 2011 on that trade lane.

Maersk said it expects a seasonal decline in both volume and freight rates toward the end of the year, which will result in a lower profit from the recent strong quarterly reports. โ€“ Source: Journal of Commerce

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