Subscribe to our free, weekly email newsletter!


World’s largest container line stages a major rebound

The Maersk parent is forecasting a record profit of around $5 billion in 2010 due to a ramped up demand for capacity
By Patrick Burnson, Executive Editor
November 11, 2010

A.P. Moller-Maersk has indicated that ocean cargo rates are not only firming up, but will remain robust in the coming year. 

The Maersk parent is forecasting a record profit of around $5 billion in 2010 due to a ramped up demand for capacity.

Revenue for the period increased by 17 percent to $41.4 billion, primarily as a result of higher freight rates for the Group’s container shipping activities and higher oil prices. The net result for the period was a profit of $4.2 billion.

“The result is exceptional, and we are very satisfied,” said Group CEO Nils S. Andersen. “Markets have been favorable, but first of all, our businesses are in excellent shape. Especially our container business has improved and is ahead of competition on profitability. We are ready to seize opportunities, especially in emerging markets.”

The news also supports shippers’ contention that rates can be sustained without “talking agreements,” or virtual cartels.

“We remain adamant and dedicated to reforming the ‘Shipping Act,’” said Michael Berzon, chairman of the National Industrial Transportation League’s (NITL) ocean committee. “It will be high on our agenda at the upcoming national conference, and we are building support worldwide for this mission.”

Meanwhile, the A.P. Moeller expects a seasonal decline in both volumes and freight rates for the container activities towards the end of the year and consequently a somewhat lower result in the fourth quarter compared to previous quarters.

“The outlook for 2010 is subject to uncertainty,” admitted spokesemen. “Specific uncertainties relate to container freight rates, transported volumes, oil prices and the USD exchange rate.”

About the Author

image
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

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

With a 1.1 cent drop to $3.858 per gallon, this follows declines of 2.5 cents, 1.9 cents, and 0.7 cents over the previous three weeks, with the cumulative four-week decline at 6.2 cents.

Second quarter revenue for transportation and logistics titan UPS headed up 5.6 percent annually at $14.3 billion, while operating profit sank 57.1 percent to $747 million. Quarterly net income fell 57.6 percent to $454 million.

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA