Posted on June 5, 2024
Copenhagen, Denmark – On the back of continued strong container market demand and the disruption caused by the ongoing crisis in the Red Sea, A.P. Moller – Maersk A/S (Maersk) now also sees signs of further port congestions, especially in Asia and the Middle East, and additional increase in container freight rates. This development is gradually building up and is expected to contribute to a stronger financial performance in the second half of 2024.
Based on this development, Maersk upgrades its 2024 full-year guidance and now expects an underlying EBITDA of USD 7 to 9bn and EBIT of USD 1 to 3bn (previously USD 4 to 6bn and USD -2 to 0bn, respectively), and free cash flow of at least USD 1bn (previously at least USD -2bn).
In the past month, the container transport market has entered a new phase driven by the disruptions from the ongoing crisis in the Red Sea and the ripple effects on global supply chains. While demand for container transport remains strong, supply has been negatively impacted by missed sailings, longer routes, equipment shortages, and delays leading to increased congestion across several key ports in Asia and the Middle East. This demand and supply imbalance has had an immediate and profound impact on freight rates.
After a stable first quarter, price increases gained momentum during April and May across many regions. The ongoing threats to commercial vessels in the Red Sea and growing supply chain bottlenecks indicate that this situation won’t improve soon. More capacity than expected will be needed to resolve these issues and stabilize the global supply chain. This has led us to reassess the outlook for the remainder of the year and upgrade our financial guidance.
Trading conditions remain subject to higher-than-normal volatility given the unpredictability of the Red Sea situation and the lack of clarity of future supply and demand.
Maersk will publish its Q2 result on 7 August 2024.
About Maersk
A.P. Moller – Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. As a global leader in logistics services, the company operates in more than 130 countries and employs around 100,000 people. Maersk is aiming to reach net zero emissions by 2040 across the entire business with new technologies, new vessels, and green fuels.
