Maersk Line reports loss of USD 116 million in Q3 2016
Maersk Line reported a third quarter (Q3) 2016 result that is USD 380 million lower than Q3 2015. The overriding reason for the loss is decline in freight rates compared to Q3 2015. Revenue in Q3 was USD 5,359 million, which is 11% lower than Q3 2015 (USD 6,018 million), the company said in its press release.
Volumes were 11% higher as Maersk Line was able to win market share. Amongst others due to increased volumes following, Hanjin’s court receivership filing, increasing customer focus on financially solid carriers and increased volumes on back haul services.
Maersk Line’s capacity grew 3.8%. Maersk Line continues to manage capacity tightly resulting in high utilisation.
Maersk Line maintains its 2016 full year expectation of a significantly lower underlying result than for 2015 (USD 1.3bn) with the specification that the underlying result is expected to be negative.
The container shipping demand growth was about 2% and the global container fleet (capacity) growth was about 3.3%. The gap between capacity entering and exiting the industry was the lowest in many quarters.
Compared to Q3 2015, Maersk Line’s average freight rate declined with 16%. However, for the first time since Q2 2014 it increased quarter-on-quarter with 5.5%.
Maersk Line is part of the newly established Transport and Logistics division. The division will help Maersk Line improve the product offering and customer experience through innovative and digitalised solutions and services.
About Maersk Line
Maersk Line is the world’s largest container shipping company, known for reliable, flexible and eco-efficient services. Maersk Line provides ocean transportation in all parts of the world. Maersk Line serves customers through 317 offices in 112 countries. Maersk Line employes 7,700 seafarers and 21,800 land-based employees and operate 611 container vessels. Maersk Line is part of the Maersk Group, headquartered in Copenhagen, Denmark. The Group employs over 88,000 people in some 130 countries. 2015 revenue: USD 40.3 billion.
