Container carriers continue to report strong financial results despite increased operating costs due to Red Sea diversions, disruptions from port strikes in the US, Canada and Europe, and fluctuating rates. Strong demand and market volatility led both AP Moller-Maersk and Hapag-Lloyd to forecast strong third-quarter results and raise their full-year 2024 forecasts.
The airline has repeatedly warned of market challenges, while also raising its forecasts several times throughout the year. With no short-term changes in the market or signs of turmoil resolving, Maersk and Hapag expect a strong fourth quarter, adding billions of dollars to their full-year forecasts.
Associated Press Moller-Maersk reported on Monday, Oct. 21, that it had raised its forecasts “on the back of strong container market demand and continued Red Sea conditions, as well as strong third-quarter results.” Furthermore, the outlook for global container market volume growth for the full year 2024 is around He said it was corrected to %.
Maersk reported third quarter total sales of $15.8 billion and EBITDA of $4.8 billion. The company plans to report full results for the quarter on October 31st. The company raised its full-year profit forecast to a total of $11 billion to $11.5 billion (EBITDA), an increase of $500 million to $2 billion for the full year. .
Soon-to-be partner Hapag-Lloyd, who will join Maersk in a new Gemini collaboration in 2025, followed suit today, October 24, highlighting a strong third quarter and improving outlook. However, they cautioned that “forecasts are subject to considerable uncertainty against a backdrop of highly volatile freight rates and significant geopolitical challenges.”
Hapag advised investors: “Given the current business policy, which is characterized by stronger-than-expected demand and improved freight rates, and despite the increased costs associated with the necessary diversion of vessels around the Cape of Good Hope, the Board of Directors of Hapag-Lloyd AG raises its revenue outlook for fiscal year 2024.”
Hapag, the sector’s fifth largest airline, reported nine-month EBITDA of $3.6 billion in preliminary figures. We plan to report the results on November 14th.
Hapag follows Maersk’s example and has added a range of $400 million to $1.1 billion to its full-year EBITDA forecast. The company currently expects 2024 EBITDA profits to be between $4.6 billion and $5 billion.
This year’s strong expectations represent a reversal from the warnings issued by all major airlines entering 2024. Citing a dramatic decline in freight rates despite consistent volumes, the outlook predicts a period of consolidation for container carriers. They were also concerned about overcapacity and the shipping impact of expanded order books, while fluctuations in market and demand as they dealt with Red Sea issues, Panama Canal restrictions, and broader maritime issues. All these concerns were offset by While shippers continued to experience strong volumes, they faced a variety of other challenges.
