Freight increase due to Red Sea crisis raises Maersk forecasts

AP Moller-Maersk´s results for the first quarter of 2024 denote a “strong recovery” in earnings compared to the fourth quarter of 2023, the Danish group reports.

Due to “good terminal performance, higher demand and a prolonged Red Sea crisis,” freight rates have increased, and so have Maersk´s growth forecasts for this year.

The Danish group specifies that the results have been impacted by the Red Sea conflict and diversions of vessels to other routes. This has affected transit times, with an increase in freight rates and market costs “due to disruptions in the supply chain, with high volumes of goods and high capacity utilization.”

“This not only supported the recovery in the first quarter compared to the previous quarter, but also improved the outlook for the coming quarters; we now expect these conditions to be with us for most of the year,” Maersk CEO Vincent Clerc specified in a statement.

Specifically, from the growth range set between 2.5% and 4.5%, they expect to get closer to the higher value, “with strong demand and container volume growth”. One of the factors that would affect would be the prolongation of the crisis in the Red Sea, as stated by the shipping company, reaching an expected EBITDA of between 4 billion and 6 billion euros.

Also, logistics and services “experienced significant growth in volumes”, and the terminals started the year “with strong results derived from the increase in cargo volumes”.


News and image obtained: "El canal marítimo y logístico"


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