A.P. Moller – Maersk (Maersk) has maintained its momentum in the second quarter, posting volume increase across all areas and better financial performance.
Maersk reported an EBIT margin of 7.5 per cent compared to 1.4 per cent in the first quarter. Ocean profitability increased, Logistics and Services expanded consistently, and Terminals did well.
Maersk revised its 2024 forecast on 1 August, citing the expansion of the Red Sea crisis and continued robust market demand.
Due to rising supply chain pressure, the ocean experienced strong volume growth and higher freight prices, notably for Asian goods.
However, the Red Sea crisis and rerouting south of the Cape of Good Hope led to higher operational costs.
Profitability returned to positive territory, and while lower than the same quarter last year, performance was significantly better than Q1 2024 and Q4 2023.
Logistics & Services climbed by 7 per cent compared to the previous year, with higher volumes across all product categories outweighing low rates.
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Profitability rose both sequentially and year-on-year (YoY), driven by greater asset utilisation, solid cost control, and progress on measures to solve client implementation problems in North America’s ground freight sector.
Terminals continued to increase throughput, especially in North America. Revenue per move grew dramatically as a result of higher tariffs and storage, but cost per move rose marginally.
Effective cost control and strong sales growth boosted profitability, resulting in one of the highest EBITDA levels ever.
Vincent Clerc, CEO of Maersk, said: “Our results this quarter confirm that performance in all our businesses is trending in the right direction. Market demand has been strong, and as we have all seen, the situation in the Red Sea remains entrenched, which leads to continued pressure on global supply chains.
“These conditions are now expected to continue for the remainder of the year. We have invested in additional equipment in all our businesses to adapt to the situation and continue supporting our customers through the disruptions.”
