Of the three divisions that AP Moller – Maersk reports in its financial results statement for the second quarter of this year (2Q24), the only one that presented a drop in revenue was the maritime division (Ocean) , although this decline could mean only a small bump in the year given the positive expectations they have in the maritime cargo transport market for the rest of 2024.
Ocean’s revenues totaled eight thousand 370 million dollars (mdd) in the April-June period of this year, just 3.9% lower than those reported in the same cycle last year , impacted by the disruption represented by attacks on ships in the Red Sea/Gulf of Aden by the Houthi insurgent group in Yemen.
This persecution against merchant ships has forced shipping lines to avoid the Suez Canal and use a longer route on their routes between Asia and Europe, thus bordering the African continent through the Cape of Good Hope, which represents greater economic and financial wear. availability time of your spaces.
The company said in its quarterly report that global container demand is estimated to have grown by 5-7% year-on-year in the second quarter, with all import regions contributing positively except Africa. Import growth in the second quarter was strongest in Latin America, North America and Far East Asia. The three fastest growing verticals in the second quarter are chemicals, retail and technology. Regarding exports, Chinese exports stood out once again with year-on-year growth close to 10% in the second quarter.
Although EBIT (earned earnings before interest and taxes are deducted) returned to positive territory at $470 million in 2Q24 , it was significantly lower compared to 2Q23, primarily due to lower freight revenues and higher costs. .
But this bitter pill did not stop Maersk in its projections. Last August 1, it announced that it now expects global container market growth for this year to be between 4 and 6 percent and to grow in line with the market compared to previous expectations of 2.5-4.5 percent.
In addition, Maersk’s capital investment (Capex) in the maritime part in 2Q24 increased 84%, to 578 million dollars, which has translated into an increase in the fleet and new orders for ships with more environmentally friendly technologies. .
The assets focused on the maritime part place Maersk as the second largest shipping line in the global market. Its average operating capacity increased by 3.5% in the reference quarter to reach four million 282 thousand 20-foot containers (TEU) and a fleet of just over 700 vessels.
Other divisions
Other divisions told a different story in the quarter. In the case of Logistics & Services , revenues increased 4% year-on-year, although its EBIT totaled $180 million or 28% less.
After the COVID-19 pandemic, Maersk showed greater interest in making inland investments to extend its transportation service beyond the seas. In this area, it has invested both in warehouses and in an air fleet to provide fulfillment services (which entail greater logistical compliance). Mexico has not been the exception for this company. The growth of cross-border electronic commerce has a lot to do with it.
Meanwhile, the terminal division accumulated $2,088 million in revenue in 2Q24 (+14.3%) and its EBIT $653 million, a year-on-year growth of 37 percent.
In this division, it stands out that its capital investment increased to 135 million dollars, driven by the modernization of two terminals in Spain and the expansion of the terminal in Lázaro Cárdenas, Mexico . He also continued the terminal modernization program in the United States.
Results during the second quarter of this year:
Results during the first half of this year:
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