Container craze drives Maersk profits up fast

Logistics giant AP Moller – Maersk has fully benefited from the high prices last year paid for container transport. The Danish multinational saw its 2021 EBITDA increase by 192% to more than $24 billion.

In the explanation of the annual figures, the logistics group speaks of an exceptional year. While the corona-disrupted logistics chains were a challenge for Maersk, the pandemic also resulted in high rates for container transport. In response to the increasing demand for logistics solutions worldwide, the company invested in expanding its activities. 

Container transport by sea is the driving force behind profit growth
Although Maersk saw capacity for waterborne transport grow by 6,4%, this is dwarfed by the revenue growth achieved in the 'Ocean' arm of the company. Turnover rose 66% and grew from more than $29 billion in 2020 to more than $48 billion in 2021. The company benefited greatly from the increased tariffs for transport.

Turnover also grew in the 'Logistic & service' and 'Terminals' branches, albeit at a somewhat lower level, by 41% and 24% respectively. The company said it benefited from higher margins, as well as winning new customers and offering services to existing customers in the 'Ocean' segment.

Outlook positive
Maersk expects an EBITDA for the whole of 2022 in line with that of 2021. Particularly in the first half, the company will still benefit from high prices for container transport, after which the situation may normalize somewhat in the second half. Total global freight demand is expected to increase by 2% to 4% in the current year.

The company, which combines logistics solutions on water, land and in the air, has more than 95.000 employees and is active in 130 countries.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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