Maersk Line ready for post peak season rate war

By Mike Wackett

Alphaliner’s analysis of the financial results of 17 main ocean carriers for the first six months of the year gives a generally improving outlook for the industry, although the turnaround in operating earnings was mainly driven by better-than-expected volume growth in the second quarter. Of the carriers that are obliged, or choose to report their results, Maersk’s container division was way ahead of its peers posting a first half net profit of $978 million and a core EBIT margin of 7.3 per cent, compared to the average margin of the 17 carriers of -0.5 per cent.

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Maersk Line profits hit $1 billion at H1, while Damco still struggles to get out of the red

By Mike Wackett

AP Møller-Maersk’s container business was once again the group’s star performer at the half-year, contributing $1 billion of the overall $2.4 billion underlying profit, further distancing itself from its competitors, many of which are still struggling to break even. After recording $454 million in the first three months, Maersk Line added further profit of $547 million in the second quarter of the year, which represented the seventh consecutive quarter when the carrier had an EBIT margin of more than 5 per cent above its industry rivals. As a consequence, APMM has revised its full year outlook for Maersk Line to “significantly above” the $1.5 billion result achieved in 2013.

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OOCL feels the benefit of economy drive and makes good on financial promises

By Mike Wackett

Hong Kong-headquartered Orient Overseas International has made good on its pledge to reverse the declining profitability of its liner shipping subsidiary OOCL. It posted a net profit of $181million for the first half of 2014, which compares with a loss of $15 million in the same period of 2013 – although today’s numbers include a $51million contribution from investment income and a revaluation of its Wall Street Plaza property. OOIL attributed the improved performance to better cost control and “robust growth in cargo demand in the major European and American markets”.

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St. Lawrence Seaway cargo shipments surpass year-to-date 2013 levels by 3 per cent

On a year-to-date basis, total cargo shipments on the St. Lawrence Seaway have now surpassed 2013 levels despite one of the most difficult starts to the shipping season in years due to ice coverage. According to the St. Lawrence Seaway Management Corporation, total cargo tonnage from March 25 to August 31 reached 20 million metric tonnes, up 3 per cent over the same period last year.

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CMA CGM creates Ocean Three, joining forces with China Shipping Container Lines and United Arab Shipping Company

CMA CGM Group, the world’s third largest container shipping company, announced three major agreements with China Shipping Container Lines Co, Ltd. (CSCL) and United Arab Shipping Company (UASC). Under the name of OCEAN THREE, the agreements concern the following maritime trades:  Asia-Europe, Asia-Mediterranean, Transpacific and Asia-United States East Coast.

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