الخميس، 03 أكتوبر 2024 02:21 م
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The number of container ships passing the Suez Canal is down about 77% from a year ago

Maersk Boosts Full Year Guidance Amid Supply Chain Disruptions

الخميس، 01 أغسطس 2024 06:14 م

A.P. Moller-Maersk A/S، a bellwether for global trade، increased its full year guidance due to higher freight rates caused by continued supply chain disruptions following attacks in the Red Sea.

Maersk now sees underlying earnings before interest، tax، depreciation and amortization of $9 billion to $11 billion this year، compared with a previous forecast of $7 billion to $9 billion، the Copenhagen-based company said on Thursday. Analysts had expected $8.76 billion on average in estimates compiled by Bloomberg.

Maersk had already raised its full-year profit forecast in May as well as in June، when it said congestion in the Red Sea was having a larger than previously expected impact on the world’s supply lines، which in turn is boosting freight rates. That disruption is “now expected to continue at least until the end of 2024،” the company said.

The Suez Canal

The number of container ships passing the Suez Canal is down about 77% from a year ago، Bloomberg Intelligence estimates، after attacks by Houthis have made the key water route unsafe. The extra vessel capacity needed to sail around Africa has pumped up freight rates at a time when the market was entering a post-pandemic slump with ship supply exceeding demand.

“Trading conditions remain subject to higher than normal volatility given the unpredictability of the Red Sea situation and the lack of clarity of supply and demand in the fourth quarter،” the company said.

Maersk also raised its forecast for 2024 global container trade، now saying it expects growth of 4% to 6%. That compares with a previous estimate that was at the upper end of a 2.5% to 4.5% growth range.

The company’s shares initially rose as much as 4.2% in Copenhagen، before trading 0.9% lower as of 1:55 p.m. local time.