Maersk Line sustains $571 million 1Q loss

   Maersk Line had operating losses of $571 million in the first quarter, a more than $1 billion slide from the $451 million the line made in the corresponding quarter in 2011, the line’s parent company said Wednesday.
   Liner revenue rose 7.4 percent to $6.3 billion, while container volume rose 22 percent to 4.4 million TEUs in the first quarter.
   The poor performance from the liner division saw A.P. Moller-Maersk Group operating profits recede 44.5 percent year-on-year, to $1.6 billion.
   Offsetting the loss on container shipping, Maersk’s oil division also saw operating profits grow 120.3 percent to $1.2 billion, despite oil revenue contracting 17.4 percent in the first quarter to $2.5 billion.
   APM Terminals saw its first quarter operating profit rise 81 percent in the first quarter to $304 million. APMT revenue rose 13.6 percent to $1.2 billion, while volume through APMT facilities rose 10.3 percent on an ownership-weight share basis to 8.6 million TEUs.
   Damco, Maersk Group’s forwarding division, saw revenue rise 7.7 percent to $738 million, but operating profit fell 18.8 percent to $13 million, despite volume handled increasing 6 percent year-on-year.
   Maersk’s container volume growth in the first quarter includes a 22 percent increase in Asia-Europe volume, due primarily to a 39 percent increase in the less lucrative backhaul lane from Europe to Asia. Headhaul volume rose 13 percent. Average Asia-Europe rates fell 21 percent in the first quarter year-on-year.
   Transpacific volume grew 21 percent year-on-year, but rates retreated by 5 percent on that trade. Only Maersk’s intra-Asia, intra-Europe, and Africa business saw rates climb in the first quarter compared to a year ago.
   Maersk said its liner business maintained its market share from December 2011 during the first quarter of 2012.
   Average revenue per FEU fell 9 percent to $2,646, while the average bunker price rose 31 percent in the first quarter.
   “Maersk Line expects a negative up to neutral result in 2012, based on the assumption that the rate restoration that has taken place since March 2012 will continue,” the company said in a statement. “The outlook is very sensitive towards changes in the market balance. Global demand for seaborne containers is expected to increase by 4 to 6 percent in 2012, with lower increases on the Asia-Europe trades but higher increases on the north/south trades.” – Eric Johnson