July 2, 2022
Ahenfo Radio Denmark
Maersk
Business

Danish freight giant Maersk posts new record profit as prices soar

Danish shipping giant Maersk on Wednesday posted record profits in the first quarter as container freight prices continued to soar, allowing it to again raise its 2022 outlook.

After registering record-beating profits for the full-year 2021, the group said its first-quarter net profit had more than doubled to $6.8 billion (6.5 billion euros) on the back of a 55-percent jump in sales to $19.2 billion.

The record earnings exceeded the previous quarterly high of $6.1 billion reported in the fourth quarter of 2021, despite a $718-million provision following its decision to stop deliveries to and from Russian ports due to the war in Ukraine.

Maersk, the world’s largest container shipping line along with Italy’s MSC, has posted robust profits since the second half of 2020.

Demand for shipping plunged at the start of the Covid pandemic, but has rebounded strongly since mid-to-late 2020.

However, bottlenecks still persist in many ports, particularly in China in recent weeks amid draconian anti-Covid measures.

“Port congestions eased slightly from their peaks in the US in the first quarter, while they increased further in Europe and China,” Maersk said, citing an external report.

After registering record-beating profits for the full-year 2021, the group said its first-quarter net profit had more than doubled to $6.8 billion (6.5 billion euros) on the back of a 55-percent jump in sales to $19.2 billion.

The record earnings exceeded the previous quarterly high of $6.1 billion reported in the fourth quarter of 2021, despite a $718-million provision following its decision to stop deliveries to and from Russian ports due to the war in Ukraine.

Maersk, the world’s largest container shipping line along with Italy’s MSC, has posted robust profits since the second half of 2020.

Demand for shipping plunged at the start of the Covid pandemic, but has rebounded strongly since mid-to-late 2020.

However, bottlenecks still persist in many ports, particularly in China in recent weeks amid draconian anti-Covid measures.

“Port congestions eased slightly from their peaks in the US in the first quarter, while they increased further in Europe and China,” Maersk said, citing an external report.

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