Maersk Line, the container shipping arm of Danish oil and shipping conglomerate A.P. Moller-Maersk, still expects losses in 2012 despite gaining global market share in 2011 and successfully raising freight rates early this year.
A.P. Moller-Maersk chairman Michael Pram Rasmussen said Maersk Line, the world’s biggest container shipping company, will still suffer full-year losses even as it eyes further rate hikes in 2012, warning that with increasing overcapacity a “latent risk of rate declines” remains.
The Copenhagen-based box line imposed rate increases of US$750 in March and $400 in April 2012 per 20-foot equivalent unit (TEU) after global shipping rates fell about 8 percent last year. It also managed to grow its market share to 15.5 percent at the end of 2011.
But Rasmussen said that Maersk Line still anticipates a negative result in 2012 owing to excess capacity and will concentrate strictly on regaining profitability. He was optimistic, however, that the supply-demand ratio would improve since the industry-wide losses of 2011 meant “there won’t be financing available to build new ships.”
“Maersk Line will place specific focus on profitability, partly with rate increases and partly with increased competitiveness, achieved through continued savings and efficiency improvements,” said Rasmussen.
Photo: Maersk Line
