Maersk Line is unlikely to top the most recent quarter’s results due to the low freight rates that are currently plaguing the container shipping market, Shipping Watch reports several analysts as saying.
Maersk’s profits boomed in Q1, 2015, when the market leader saw a US$1.6 billion result, which was given a sharp push by the sale of its shares in Dansk Bank for more than $230 million.
Frans Høyer of Jyske Bank, said: “We should not expect the improvements we saw in the first quarter. We are more likely to see them adjust their full-year forecast for Maersk Line.
“The group has said in the past that it would deliver improvements, and when they make a comment like that they are referring to significant improvements. Now I think Maersk will point to a result more in line with that of last year.”
Shipping Consultants Drewry previously said that freight rates had reached a volatility of 40%, with overall shipping confidence dropping to 5.3 on a scale of 1 to 10 – the lowest point in seven years.
Despite issues relating to volatile freight rates, Maersk has been gaining ground in other areas such as its shipping portfolio and could have as many as seventeen 14,000 TEU ships by 2017.
It has a total fleet capacity that exceeds three million TEU and is set to maintain its position as the largest container line in the world.