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
Supply Chain Visibility: Illuminating the Path to Responsive, Agile Operations
Supply chain visibility is not an end, but a tool. It is the means to achieving true supply chain effectiveness, agility and ultimately, corporate profitability.
Download Today!
From the December 2017 Logistics Management Magazine Issue
Trade and transport analysts see rates rising across all modes in accordance with continued expansion of domestic and international markets. Economists, meanwhile, say shippers can expect revenue growth in transport verticals to remain in the 3%-plus range.
2018 Customs & Regulations Update:10 observations on the “digital trade transformation”
Moore on Pricing: Freight settlement and your TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2018 Rate Forecast
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...

2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...