Maersk Gains Momentum in the Second Quarter of 2024

A.P. Moller – Maersk has gained further momentum in the second quarter, recording volume growth across all segments and an improved financial performance with an EBIT margin of 7.5% compared to 1.4% in the first quarter. The results were driven by higher profitability in ocean freight, solid growth in Logistics & Services, and excellent performance in the terminals. In light of the ongoing crisis in the Red Sea and continued robust market demand, Maersk raised its forecast for 2024 on August 1.

(Kopenhagen) “Our results this quarter confirm that performance across all our business areas is heading in the right direction. Market demand was strong, and as we have all seen, the situation in the Red Sea remains tense, leading to ongoing pressure on global supply chains. These conditions are now expected to persist for the remainder of the year. We have invested in additional equipment across all our business areas to adapt to the situation and continue supporting our customers through the disruptions. Looking ahead, we remain focused on driving organic growth while also exploring opportunities for value-accretive acquisitions, particularly in logistics. We will maintain strict cost control and high asset utilization while continuing to implement our fleet renewal program,” says Vincent Clerc, CEO of Maersk.

Profitability Returns to Positive Territory

Ocean freight experienced strong volume growth and higher freight rates, particularly in Asia exports, reflecting the increased pressure in the supply chain, while the situation in the Red Sea and the diversion south of the Cape of Good Hope continued to lead to higher operating costs. Profitability returned to positive territory, and although it was below the previous year’s quarter, performance was significantly better compared to Q1 2024 and Q4 2023.

Logistics & Services grew by 7% compared to the previous year, and the increased volumes across all product families more than offset the low rates. Profitability improved both compared to the previous quarter and the previous year, positively influenced by higher asset utilization, good cost control, and progress on initiatives to address challenges in implementing customers in the domestic freight business in North America.

The terminals continued to see volume growth, particularly in North America. Revenue per throughput increased significantly due to higher tariffs and increased storage, while costs per throughput rose slightly. Effective cost management and robust revenue growth supported profitability and resulted in one of the highest EBITDA figures ever.

Financial Outlook for 2024

As announced on August 1, Maersk is raising its financial forecast due to ongoing supply chain disruptions caused by the current situation in the Red Sea/Gulf of Aden and robust demand in the container market, as shown in the table below. Maersk now expects global container market growth of between 4-6%, aligning growth with the market, compared to previous expectations of 2.5-4.5% at the upper end.

Photo: © Maersk / Image Caption: Maersk Headquarters in Copenhagen