Get the app today! App Store Play Store

Maersk Boosts Outlook On Surging Demand

Published on Apr 27 2021 10:02 AM in Supply Chain tagged: Trending Posts / Maersk / Shipping

Maersk Boosts Outlook On Surging Demand

Shipping group Maersk has announced big jumps in its full-year guidance after a strong first-quarter performance driven by high demand which has led to supply bottlenecks and higher freight rates.

Maersk raised its outlook for underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $13-15 billion from $8.5-10.5 billion.

It expects underlying EBIT of $9-11 billion, up from 4.3-6.3 billion previously, Maersk said in a statement released late Monday.

"The continued strong performance is mainly driven by the continuation of the exceptional market situation with surging demand leading to bottlenecks in the supply chain and equipment (containers) shortage," it said.

'Exceptional Market Situation'

The Danish firm said it expected the exceptional market situation to continue into the fourth quarter of this year.

Volumes in its Ocean division increased by 5.7% in the first quarter, while average freight rates rose 35%

Maersk raised its outlook for global demand growth to 5-7% from 3-5%, mainly due to export volumes from China to the United States, it said.

The company is set to publish first-quarter results on 5 May.

News by Reuters edited by Checkout. For more A Brands news click here. Click subscribe to sign up for the Checkout print edition.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email