THE world's biggest container shipping company Maersk Line posted a third quarter net loss of US$116 million against last year's $264 million profit, drawn on quarterly revenues of $5.35 billion, which fell 11 per cent.
Average freight rates declined 16 per cent and deteriorated across all trades with North America, West Central Asia and Africa declining most, and Oceania and European declining the least.
"The result is unsatisfactory, but driven by low prices," said Maersk CEO Soren Skou. "We generally perform strongly on cost and volume across businesses."
Maersk said its underlying profit for 2016 will be "below" $1 billion. Previously, the company had said the full-year result would fall "significantly" short of 2015's $3.1 billion.
AP Moller-Maersk group, owner of the world's biggest container line, posted a 43 per cent year-on-year third quarter net profit decline to US$429 million, drawn on net quarterly cash flow of $736 million, which fell 18.5 per cent.
Group revenue figures were not provided. Cash flow differs from revenue because while revenue counts money coming in, cash flow shows money coming in and going out.
Container volume increased 11 per cent to 5.4 million TEU mainly driven by increased demand due to the situation with the Hanjin bankruptcy and increases in backhaul volumes.
Global container demand is estimated to have grown by one to two per cent while the global container fleet grew three per cent.
Maersk Line's capacity grew 3.8 per cent to 3.1 million TEU. Chartered capacity grew 6.4 per cent to accommodate increased volume while owned capacity grew 2.1 per cent. Total capacity remained unchanged from the previous quarter.
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Average container rates for Maersk Line improved from the previous quarter by 5.5 per cent for the first time since the third quarter of 2014.
Despite increasing bunker prices, Maersk Line managed to keep unit costs below $2,000.
Source: SchednetPrevious Next
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