by Lloyd's List

31 October 2024 (Lloyd's List) - DANISH shipping giant Maersk reported strong third-quarter results on Wednesday, with profits surging across all business segments compared with last year.

Driven primarily by its Ocean division, Maersk’s profits and revenue grew markedly amid continued high demand for container shipping.

“This quarter, we once again supported our customers through times of high volatility and low visibility,” said chief executive Vincent Clerc. “We reaffirmed our commitment to profitable growth and operational progress, driving results across all business areas.”

The Ocean segment was the top performer, with a 41% revenue increase. While network rerouting around Africa increased costs, this was offset by operational efficiencies. Earnings before interest and tax from the Ocean division surged by $2.9bn to $5.9bn.

Meanwhile, the Logistics & Services division saw revenues climb 11% annually and 7% sequentially on higher volumes. Profitability continued recovering, with ebit up $64m to $200m.

Its terminal business also recorded strong growth, particularly in North America, where revenue per move hit all-time highs. Terminals ebitda reached $424m, the best since the first quarter of 2022.

The improved outlook reflects robust container shipping demand and the ripple effects of Red Sea disruptions that started in late 2023. Maersk now expects full-year global container demand growth around 6%, up from 4%-6% previously.

Clerc said the company remains focused on profitable expansion and productivity gains across its integrated logistics businesses. It continues leveraging its global scale and agility to meet customer needs amid geopolitical uncertainty.

As announced last week, Maersk upgraded its full-year earnings guidance on the back of the robust performance.

The company now expects underlying ebit of $5.2bn-$5.7bn for 2024, up from its previous range of $3bn-5bn.