Maersk eyes first loss in half a century
Fri, 15 May 2009
Maersk Line owner AP Møller Maersk last week admitted it could post a full-year loss for the first time in more than 50 years.
It reported a net loss of US$373m for the first quarter, compared with a profit of more than $1bn a year earlier.
Similarly, APL parent Neptune Orient Lines (NOL), posted a net loss of $245m for the same quarter, compared with a year-on-year profit of $121m in 2008. Revenue fell 36% to $1.5bn.
The results reflected the impact of global recession and vessel overcapacity on carriers.
Volumes transported by Maersk fell 14% to 2.6m teu in the quarter, with average freight rates 24% lower, although the results for March were "less negative" than the first two months of the year, the company said.
Maersk, which has now taken 18 vessels out of service, saw volumes on AsiaEurope trades fall 8% on a year earlier, while rates were 44% down, on average.
On the transpacific, volumes fell 14%.
The carrier saw transatlantic volumes drop 21%, although rates remained steady.
There was "no immediate prospect of any improvement in the current market conditions", said Maersk.
Singapore-based NOL, which predicted a "significant" full-year loss, said freight rates had deteriorated across all major trade lanes.
APL shipped around 962,000teu in the period, 27% less than a year earlier, with falling 16%.
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