World News
Maersk Line Recovery Drives Group Profits in 2012
A.P. Moeller-Maersk (Maersk) reports it increased its profits by 20 percent to $4 billion in 2012 as shipping division Maersk Line returned to profitability after negative results in 2011.
Maersk Line made a profit of $461 million for the year on revenue of $27.1 billion, after losing $553 million on revenue of $25.1 billion in 2011, thanks to volume growth and cost reductions.
"Maersk Line restored market rate levels through general rate increases backed by capacity withdrawal," the company said.
Maersk Line is continuing to push for strong returns, and it said a general rate increase (GRI) on refrigerated (reefer) containers that it implemented at the start of 2013 has "largely been accepted by the market."
A company official said in December that increasing its reefer rates could lose it some market share, but the move was needed to get a return on the investments it has made in the sector.
Maersk Drilling was the only company division to see profits decline in 2012, to $359 million, compared with $488 million in 2011, and Maersk said that was a result of delayed start-up on new contracts and "various other one-offs."
Maersk said it expects its profits for 2013 to decline slightly from the 2012 level, with Maerk Line's profit rising on the back of further unit cost reductions and increasing global demand for shipping containers, which it forecast to increase around 4 to 5 percent this year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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