Shipping Giant Maersk Improves Outlook Due to Surge In Demand
Shipping group A.P. Møller - Mærsk A/S has announced an improved full-year guidance after a strong first-quarter performance driven by high demand, which has led to supply bottlenecks and higher freight rates.
Maersk raised its EBITDA outlook to $13 billon to $15 billion, up from $8.5 billion to $10.5 billion.
It expects underlying EBIT of $9 billion to $11 billion, up from $4.3 billion to $6.3 billion previously, Maersk said in a statement.
'The continued strong performance is mainly driven by the continuation of the exceptional market situation with surging demand leading to bottlenecks in the supply chain and equipment (containers) shortage,' it said in a statement.
The Danish firm said it expected the exceptional market situation to continue into the fourth quarter of this year.
Volumes in its Ocean division increased by 5.7% in the first quarter, while average freight rates rose 35%.
Maersk raised its outlook for global demand growth to 5-7% from 3-5%, mainly due to export volumes from China to the United States. Higher expected capex will provide additional containers to relieve the current bottlenecks and improve service reliability, it said.
'Trading conditions for the quarters ahead remain subject to a higher than normal volatility due to potential changes in current demand patterns and the current disruptions in the supply chains and equipment shortages impacting the short-term container freight rates,' the group noted.
The company is set to publish first-quarter results on May 5.