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Higher freight rates boost Maersk revenues

REVENUES at Maersk’s Transport and Logistics division rose 14% in the third quarter on the back of improved freight rates, taking the group’s container division to a profit of $290m.

Group revenue increased by $973m to $8bn with a $771m increase in Maersk Line, mainly due to higher freight rates. AP Moller-Maersk reported an underlying profit from continuing operations of $248m, up from a loss of $42m in the corresponding quarter last year, as profits from Transport and Logistics were offset by a loss of $15m in its Energy division.

The underlying profit was positively impacted by the increased freight rates in Maersk Line compared to the third quarter of 2016, however with a 2.5% decrease in volumes and increasing unit cost due to the cyber-attack and 26% higher bunker price.

At a group level, however, a $1.8bn impairment at Maersk Drilling following its classification as a discontinued operation, and impairments of $374m at APM Terminals led to a net loss of $1.5bn. For continuing operations, the loss was $120m.

Read the full original here at Lloydslist.

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