The Logistician
  • Tiếng ViệtTiếng Việt
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Login
  • Register
No Result
View All Result
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Tiếng ViệtTiếng Việt
  • Login
  • Register
No Result
View All Result
The Logistician
No Result
View All Result

Maersk enjoys ‘reasonable’ first quarter, but there’s rougher sea ahead

Daniel by Daniel
15/05/2020
in Blog
Maersk Line chief executive Soren Skou

After a solid first quarter performance, Maersk says it expects container volumes to contract by up to 25% in second quarter.

The substantial reduction in demand is due to the pandemic and ensuing consumer lockdowns, with the financial implications expected later in the year, said chief executive Soren Skou today.

Notwithstanding the expected downturn in the second quarter he said Maersk’s liner pro-forma result for April had been “reasonable”, benefiting from a halving of fuel costs and its “agile capacity management protection strategy” on freight rates.

After cancelling 90 sailings in the first quarter, Maersk said it would blank more than 130 voyages in the next quarters to match supply with the collapsing demand.

The company recorded a net profit of $197m in the first quarter, compared with a loss of $69m in the same period of 2019, while group turnover edged up $0.3% to $9.6bn, “driven by ocean”, it said.

Indeed, despite a 3.2% decline in liftings, to 6.1m teu across Maersk’s liner network, revenue increased by 3% to $7.23bn, resulting in its average freight rate jumping 5.7% to $1,000 per teu.

Maersk Line Receives Client Relationship Management Award

Mr Skou said the $107 per feu average rate improvement reflected Maersk’s “flawless execution” of its strategy to achieve compensation from customers for the initial 22% hike in IMO 2020-compliant bunker fuel.

East-west volumes had taken the biggest percentage hit, down almost 6%, year on year, to 2.8m teu, while north-south volumes declined 2.6% to 1.9m teu.

The east-west trades are also likely to see the biggest dip in volumes in the coming quarter, but there is also concern regarding potentially large contractions on some north-south trades where economies are dependent on higher oil prices.

Speaking during Maersk’s investor and analyst presentation this morning, Mr Skou said: “We are in the middle of a pandemic storm, but we will weather the storm. The transformation of AP Møller-Maersk from a diversified conglomerate to becoming a focused, integrated and digitised global logistics company continues to be validated also in this quarter, as we are serving our customers, connecting and digitising their supply chains, while also growing earnings and free cash flow in difficult circumstances.”

He said Maersk was “not pursuing market share”, but claimed business was being won, as customers “were focusing even more on reliability and a trusted partnership in these extraordinary times”.

Landside, Logistics & Services – which excludes the Damco freight forwarder – saw an improved ebitda of $68m, compared with $48m the year before. Terminals & Towage, including APM Terminals, saw a revenue decline of 9.3% to $911m, while ebitda improved by 2.6% to $276m, despite flat throughput of 2.8m teu at the APMT gateway terminals.

Given the uncertainty surrounding a recovery from the pandemic, Maersk’s guidance for 2020 remains suspended.

“Looking into the second quarter, visibility remains low as a result of the Covid-19 pandemic,” said Mr Skou, and he conceded there was “no visibility on what our customers will do as yet”.

Source: The Loadstar

Related Posts

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

01/07/2022
0
TP Hồ Chí Minh xem xét chuyển đổi mục đích sử dụng một số khu công nghiệp sang logistics

Ho Chi Minh City considers converting some industrial parks into logistics

29/06/2022
0
Image: Thu Trang

DB Schenker’s agreement to acquire USA Truck

28/06/2022
0
Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

22/06/2022
0
FedEx invests in FourKites to build intelligent supply chain platform

FedEx invests in FourKites to build intelligent supply chain platform

22/06/2022
0
LG Electronics “shake hand” with CJ Logistics to develop logistics robots

LG Electronics “shake hand” with CJ Logistics to develop logistics robots

19/06/2022
0

ĐỀ XUẤT NÊN ĐỌC

Lebanon – “Nạn nhân” tiếp theo của khủng hoảng năng lượng điện

Lebanon – The next “victim” of the energy crisis

1 year ago
0
Các hãng hàng không dừng bán vé chuyến bay nội địa

Airlines stop selling domestic flight tickets

1 year ago
0
Liên minh châu Âu thách thức sự bành trướng thương mại của Trung Quốc với mức thuế quan cao ngất ngưởng

EU Challenges China’s Trade Expansion With Landmark Tariff

3 years ago
0
Hong Kong có thể sẽ có thêm một hãng hàng không Startup mang tên Greater Bay Airlines

Hong Kong Could Get Another Airline With Startup Greater Bay Airlines

2 years ago
0
ADVERTISEMENT

THẺ NỔI BẬT

ACQUISITIONaircraftairlinesamazonAppleblockchainBoeingchinaCMA CGMcontainerContainer shortageCovid-19covid19crisisDHLe-commerceEuropeEVFTAexportfedexgoodsinfrastructureInvestmentLNGlogisticsLogistics centerM&Amaerskportport congestionRAILWAYRussiaRussia-Ukraineseasupply chainSupply chain disruptiontechnologyThai AirwaysthailandtransportusvietnamVietnam AirlineswalmartWarehouse
ADVERTISEMENT

TIN TỨC PHỔ BIẾN

  • Uniqlo Supply Chain Management

    Uniqlo Supply Chain Management

    0 shares
    Share 0 Tweet 0
  • Certificates that advance your career in Logistics and supply chain management

    0 shares
    Share 0 Tweet 0
  • A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

    0 shares
    Share 0 Tweet 0
  • Procurement and Apple’s strategy

    0 shares
    Share 0 Tweet 0
  • How Aviation Fuel Differs From Regular Fuel

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube RSS
The Logistician

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

  • Login
  • Sign Up
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

-
00:00
00:00

Danh sách

Update Required Flash plugin
-
00:00
00:00