A.P. Moller-Maersk has announced that the shipping giant expects to deliver an underlying operating profit of between US$2bn and US$4bn, after warning of an EBIT loss just a few months ago.
With estimates of demand expanding by 7.3%, well ahead of fleet supply growth, the speed of Maersk’s turnaround highlights how quickly things can change in international shipping. Spot freight rates reflect those dynamics with the Shanghai Containerized Freight Index at more than double pre-conflict levels, according to HSBC, and rates on both Asia-Europe and transpacific trades continue to climb. In the meantime, congestion has also returned, with almost 11% of the world’s containership fleet currently waiting outside ports, the highest level since 2022.
However, some experts have questioned the increasing additional charges levied by shipping lines. Speaking to The Loadstar, Director of the Global Shipper’s Forum James Hookham said that surcharges were undermining customer trust. “What does stick in the throat is the lack of transparency on the surcharges (which are only supposed to recover additional costs, not inflate the profit forecast), and the acknowledged ability to ‘manage’ the undoubted excess capacity to create an apparently tight market.”
Few analysts expect the current conditions for shipping lines to last. As more new containerships are brought into service and geopolitical challenges hopefully ease, freight markets are expected to normalize.
IAM Member Impact: With minimal leverage, the international moving industry is exposed to the full force of increased freight rates, impacting customer budgets and transit time unpredictability. Relief may come as new vessel capacity enters service, but members should expect continued cost and scheduling pressure in the near term.
Source: The Loadstar Splash 247