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Maersk ups full year earnings forecast as port congestion grows

AP Møller – Maersk expects a stronger financial performance in the second half of the year as container spot rates hit their highest level since August 2022.

Marcus Hand, Editor

June 3, 2024

1 Min Read
Maersk flag flying at its headquarters in Copenhagen
Photo: Marcus Hand

The Danish shipping company has upped its full year 2024 EBIT forecast to $1 - $3 billion from negative $2 billion - $0 previously and its full year EBITDA forecast to $7 - $9 billion from $4 - $6 billion previously.

“On the back of continued strong container market demand and the disruption caused by the ongoing crisis in the Red Sea, AP Møller - Mærsk A/S (APMM) now also sees signs of further port congestions, especially in Asia and the Middle East, and additional increase in container freight rates,” the company said.

“This development is gradually building up and is expected to contribute to a stronger financial performance in the second half of 2024.”

The Shanghai Containerized Freight Index (SCFI) jumped 13% week-on-week on 31 May hitting 3,000 points its highest level since August 2022, when spot container freight rates were at unprecedented levels as result of pandemic induced disruption.

Congestion has hit the key transhipment hub of Singapore recently with analyst Linerlytica reporting last week that some container ships were facing berthing delays of up to seven days. The Singapore authorities say they are reactivating old berths in Keppel Terminal to increase capacity as well as accelerating new berths come onstream at Tuas Port.

Related:Singapore port reactivating mothballed berths to fight congestion

HSBC Global Research commented in its Global Freight Monitor on 3 June, “We think the situation is less likely to ease any time soon given the early peak season coinciding with capacity and box shortages due to the Red Sea disruptions."

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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