Subscribe to our free, weekly email newsletter!

Maersk reports significant revenue loss for 2011

According to the Paris-based consultancy, Alphaliner, the poor performance was largely due to a record operating loss of $603 million in the fourth quarter,
By Patrick Burnson, Executive Editor
February 27, 2012

APM-Maersk has reported an operating (EBIT) loss of $386 million for its container shipping and logistics activities for 2011.

According to the Paris-based consultancy, Alphaliner, the poor performance was largely due to a record operating loss of $603 million in the fourth quarter, which was the worst quarter for the carrier on record surpassing even the recession in 2009. The fourth quarter EBIT margin reached –8.8 percent, only slightly better than the 2009 quarterly performance.

APM Maersk Container Activities by Quarter 2008-2011 (Including Maersk Line, Safmarine, MCC, Seago Line and Damco) For the first time, the group also broke down its full year earnings of its liner business from its logistics business.

“Of the $386 million operating loss in 2011, Maersk’s liner business share of the loss was -$483 million while its freight forwarding and supply chain management services offered through Damco contributed an operating profit of $97 million,” said Alphaliner’s commercial director, Stephen Fletcher.

However, APM-Maersk failed to provide quarterly breakdowns which would have allowed comparisons against previous years. Maersk attributed the poor liner results mainly to the low rates on the Asia–Europe trades. The company said that “freight rates started the year at a reasonable level, but decreased throughout the year as large amounts of new tonnage was delivered.”

Overall freight rates fell by 8 percent in 2011 with the Asia-Europe rates suffering the steepest decline at 19 percent. The Asia-Europe trade accounts for 39 percent of Maersk’s total liftings last year.
Maersk’s total container liftings increased by 11 percent to 16.22 million twenty-foot equivalent unit (TEU), growing at a rate that was above the market average and allowing it to gain market share. However, the company said that its focus this year “is moved towards profitability ahead of further market share gain.”

It forecast that the liner business will remain unprofitable in 2012 despite the recent attempts by carriers to raise rates on the Far East/Europe routes.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA