A.P. Moller Maersk A/S yesterday raised its profit forecast for the second time this year after congestion on trade lanes boosted global freight rates, creating an “exceptional market” for transport companies.
Maersk, which controls about one-sixth of the world’s container trade, and its peers have benefited from supply-line disruptions as a shortage of shipping capacity has enabled them to charge higher prices for their services.
Hapag-Lloyd AG, the world’s fifth-largest shipping line, on Thursday raised its profit forecast, saying average freight rates have been about 80 percent higher in the first half of this year.
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Underlying earnings before interest and tax would be about US$31 billion this year, Maersk said. That compares with a previous forecast of about US$24 billion and an average estimate of US$28.4 billion in a Bloomberg survey of analysts.
“Congestion in global supply chains leading to higher freight rates has continued longer than initially anticipated,” the Copenhagen-based company said. “The strong result is driven by the continuation of the exceptional market situation.”
Maersk is due to publish its second-quarter report today.
The company’s underlying earnings before interest, tax, depreciation and amortization would be about US$37 billion this year, up from about the US$30 billion seen previously, and free cash flow this year would be above US$24 billion, up from a previous forecast of above US$19 billion, it said.
“The average container rate still remains significantly above historical levels, which bodes well for the profit outlook for 2023,” Danske Bank credit analyst Brian Borsting said in a note. “Macro uncertainty and a high container order book are main risks.”
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