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Supply Chain

Maersk Expects Supply Chain Challenges To Continue Into 2022

Shipping group Maersk has said that it expects 2022 earnings to reach the same level as last year, with the challenges that have weighed on global supply chains set to continue in the first half of the year, stabilising later in the year.

Record-high freight rates caused by pandemic-related congestion at ports, container shortages and a surge in consumer demand helped Maersk boost earnings last year.

'Severe Challenges' For Customers

"Exceptional market conditions led to record-high growth and profitability in Maersk, however it also led to supply chain disruptions and severe challenges for our customers," chief executive Soren Skou said in a statement.

"We see the current market situation persist into the second quarter," he added.

Maersk, which handles about one in five containers shipped worldwide, increased dividend payout to shareholders to a total of DKK 47 billion (€6.32 billion), or DKK 2,500 per share, compared to DKK 330 per share a year earlier.

Earnings Slightly Below Last Year

Maersk said it expects underlying earnings before interest, tax, depreciation and amortisation at around $24 billion (€21.02 billion) this year, similar to earnings last year, but slightly below the $24.4 billion expected by analysts in a poll gathered by the company.

The company reiterated preliminary fourth-quarter results published on January 14, when the company said a fall in ocean-going container volumes by 4% was more than offset by freight rates improving 80% compared with a year earlier.

Maersk recently announced plans to enhance its sustainability footprint, bringing forward its decarbonisation plans by a decade.

News by Reuters, edited by ESM. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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