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 ·

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 [email protected]

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!

Latest Whitepaper
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...