by Responsible Editor, SeaNewsEditor
7 August (Lloyd's List) - MAERSK has unveiled plans for a massive 800,000 teu newbuilding program as it reported second quarter results on Wednesday.
The ambitious project, being implemented through direct newbuilding orders and time charter agreements, seems to signal that this company focusing on logistics integration, has begun catching up with competitors in fleet size.
Maersk said in its latest quarterly report that the new dual-fuel capacities, nearly a quarter of its existing fleet, are expected for delivery from 2026 to 2030.
It now forecasts capital expenditures of $10-11bn for 2024-2025 due to continuous fleet renewal. No other details were provided yet.
But speculation has earlier circulated that Maersk, long fixated on methanol as a marine fuel, was planning a large batch of LNG dual-fuel neo-panamaxes – a possible pivot in its fuel planning.
Lloyd's List had reported slower-than-expected green methanol production and uncertainty around shipping carbon prices are behind the decision to hedge bets.
The ordering plan comes as the Red Sea disruption has boosted freight markets again after the COVID pandemic, further filling carriers’ coffers and strengthening their expansion capacity.
But Alphaliner pointed out in a report this week that Maersk, which has favoured non-shipping growth, lags rivals in growing fleet, a strategy that could face challenges.
The Copenhagen-based company has seen its share of global capacity slide yearly since 2018. It was overtaken as top carrier by Mediterranean Shipping Co in January 2022, while number three CMA CGM also threatens to unseat it as second largest based on its huge orderbook.
Alphaliner noted five of the top 10 carriers now have larger orderbooks than Maersk's.
“The group could come under pressure from shareholders for the strategy if financial returns do not improve, with the group’s preliminary figures for Q2 indicating an operating margin of 6%, despite the Red Sea crisis,” said the consultancy.
Maersk today reported second-quarter adjusted earnings before interest and tax of $756m, unchanged from its preliminary report published on August 1, compared to $177m in the first quarter. That puts first-half adjusted ebit at $930m.
“Our results this quarter confirm that performance in all our businesses is trending in the right direction,” said chief executive Vincent Clerc, adding the Red Sea situation is expected to continue for the rest of 2024.
“As we look ahead, our focus remains on leveraging organic growth while exploring opportunities for value-accretive acquisitions particularly in Logistics.
“We will maintain tight cost control and high asset utilization, and further execute on our fleet renewal program,” Clerc said.
Maersk also kept its full year guidance unchanged, expecting global container demand to rise 4-6% in 2024 versus 2023, up from its prior 2.5-4.5% projection.
“Trading conditions remain subject to higher than normal volatility given the unpredictability of the Red Sea situation and the lack of clarity of supply and demand in Q4,” it said.