World News
Maersk Line Q3 Bunker Costs Reduced by $41 million as Profits Rise 24%
Maersk Line Tuesday reported a $685 million profit, representing a 24 percent year-on-year rise, in a third quarter of 2014 that was stronger than analysts had expected.
Q3 2014 revenues showed a relatively smaller uplift of 4.3 percent to $7,074 million, as a result of a 3.7 percent increase in volumes and an average rate increase of 0.9 percent.
Bunker costs for the period were reduced by $41 million year-on-year, or 3.2 percent, thanks to lower bunker consumption and a falling bunker price, with overall bunker consumption falling 2.4 percent.
The average bunker consumption per Forty-Foot Equivalent unit (FFE) fell 5.9 percent, with Maersk Line saying the average price it paid for bunkers fell to $575 per metirc tonne (pmt), down from $580 pmt in the period last year.
"The days of rapid growth in containerised trade are over. We have to be happy as an industry that we are still growing," said Nils Andersen, CEO, A.P. Moeller-Maersk.
Maersk Line said it increased its capacity 6.3 percent during the quarter, taking delivery of three Triple-E box ships.
The new ships brought Maersk Line's total capacity to 2.8 million Twenty-foot Equivalent Units (TEU) and mean 12 of 20 new Triple Es had been delivered.
Maersk Line's profit for the first 9 months of 2014 now sits at $1,686 million, and after the strong third quarter the World's largest boxship operator says it now expects a result for 2014 above $2 billion.
It also warned of a slowing in global trade, revising its outlook for the rise in global demand to 3 to 5 percent, down from 4 to 5 percent.
"We see a slowdown in emerging markets, partly driven by a lower need for raw materials from China. Europe - it's very slow growth, if any, at the moment, and there's no reason to expect a big change here," said Andersen.
Maersk Line expects further efficiencies when it commences the operation of its 2M alliance with Mediterranean Shipping Co. in early 2015.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.50 | 0.00 | 665.50 | 1.00 |
| Rotterdam | 512.00 | 3.00 | 663.00 | 0.50 |
| Houston | 545.50 | 3.00 | 666.00 | 9.50 |
| Fujairah | 560.50 | 0.00 | 743.50 | 1.50 |
| Global 20 Ports Average | 584.00 | 1.00 | 751.50 | 2.00 |
| Global 4 Ports Average | 547.50 | 0.00 | 684.50 | 2.50 |
| Global Average Bunker Price | 633.50 | 0.50 | 805.50 | 0.00 |
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