Maersk reported an underlying profit of $3.1 billion for the third quarter of 2024, reflecting the positive impact of sharply higher freight rates, improved cargo volumes across all divisions and higher revenue per shipment at terminals. Officially released figures showed that revenues rose by 30% to $15.8 billion and operating profit (EBIT) soared to $3.3 billion from $538 million in the same period last year. Maersk CEO Vincent Clerc said, “This quarter, we once again supported our customers during a period of high volatility and low visibility. We reaffirmed our commitment to profitable growth and operational progress, driving results across all areas of the business through a continued rigorous focus on cost discipline, productivity improvements and efficient asset utilization. In logistics and services, we achieved steady margin improvement and growth through our efforts to win new customers. In Terminals, we made further improvements based on high performance. Our Ocean team responds to recurring network outages with a high degree of agility by leveraging our hub terminals and investing in capacity and equipment to mitigate the supply chain impact on customers while optimizing unit costs.”
Maritime profitability was driven by a 54% increase in freight rates ($3,236/international route), a 0.3% increase in cargo volumes (3.2 million international routes) and a 41% increase in final revenues ($11.1 billion). “Diversions south of the Cape of Good Hope continue to be a significant factor in fuel consumption and operating costs. Despite these cost pressures, both EBITDA and EBIT increased by $2.9 billion, with an EBIT margin of 25.5%. “The Logistics and Services segment reported strong year-over-year revenue growth in the third quarter, up 11% and 7.2% sequentially, respectively, as a result of higher sales volumes across most product lines. EBITDA continued to rebound to $200 million, primarily from earnings growth in the Lead Logistics and Aviation businesses, with an EBIT margin of 5.1 percent. “Terminals continued to deliver strong revenue growth, particularly in North America, where cargo volumes remain strong. During the quarter, both volume and revenue per transaction reached record highs. As a result, the terminal achieved its best EBITDA since the first quarter of 2022 at $424 million, driven by strong volume and localized storage revenue growth, particularly in North America, with a 13% ROIC (LTM) for the quarter.”
Air Cargo Outlook
Maersk said global air freight forwarding demand was strong in the second quarter, up 8% year-on-year.“Some of the data shows that the growth momentum remains strong in the third quarter.Export growth in China and Southeast Asia accounted for nearly half of the growth.All verticals supported growth, although the surge in direct-to-consumer e-commerce continued to play a key role.Prices remained stable in the third quarter, with the TAC index standing at $2.14 per kilogram, indicating a balanced global supply and demand.However, supply challenges are emerging with major manufacturers struggling to deliver on time amid strikes and material shortages.”
Financial review 9M2024
For the first nine months of 2024, total revenues increased by 4% to $40.9 billion, while underlying profit declined to $3.9 billion from $4.4 billion in the same period last year, “adjusted for a net gain of $212 million, driven primarily by Ocean's ship and container sales.”
2024 outlook
Maersk expects full-year 2024 underlying EBIT to be $5.2 - $5.7 billion against the backdrop of a strong third quarter result, strong demand in the container market, and continued Red Sea/Gulf of Aden conditions. Maersk now expects the global container market to grow at around 6% for the full year (previously 4- 6%).