Maersk Maintains Outlook Despite Container Demand Concerns

A.P. Moller-Maersk backed full-year guidance despite moderating expectations around global container demand this year as macroeconomic and geopolitical uncertainty increase.

The Danish shipping giant said its main shipping business benefited from a 13% increase in freight revenue in the first quarter, with a 2.5% increase in freight rates on the year and stable volumes.

Costs remained stable due to continued focus on optimization and mitigation of increases, supported by a 9% drop in fuel price.

The company said first-quarter revenue climbed to $13.32 billion from $12.36 billion a year earlier. Underlying earnings before interest, tax, depreciation and amortization rose to $2.71 billion from $1.6 billion, while underlying earnings before interest and tax jumped to $1.2 billion from $174 million.

A FactSet analyst poll had seen revenue at $13.26 billion, underlying Ebitda at $2.63 billion and underlying EBIT at $1.15 billion.

The company is still targeting $6 billion to $9 billion in underlying Ebitda this year, and up to $3 billion in underlying EBIT, but volume growth in the global container market is now expected between a 1% fall and 4% rise. It had previously expected global container volume growth of around 4% in 2025.

Maersk expects to grow in line with the market and assumes that disruption in the Red Sea continues throughout the rest of the year.

Maersk’s decision to maintain its full-year outlook despite container demand concerns reflects its strategic resilience in navigating global trade uncertainties. This steadfast approach underscores the company’s adaptability and commitment to sustaining sea operations amidst fluctuating market conditions.

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