Denmark-based A.P. Moller Maersk says its revenue increased by 32 percent in 2022 compared with the prior year, while its earnings before interest and taxes (EBIT) jumped by 57 percent.
Saying it “delivered extraordinary financial performance” last year, the shipping line says its EBIT figure of $30.9 billion was achieved with revenue of $81.5 billion.
“While we report the best financial result in the history of the company, we have also taken the partnerships with our customers to a new level by supporting their supply chains end to end during highly disruptive times,” CEO Vincent Clerc says.
He continues, “As we enter a year with challenging macro-outlook and new types of uncertainties for our customers, we are determined to speed up our business transformation and increase our operational excellence to seize the unique opportunities in front of us.”
Maersk says its “unprecedented financial results were driven by solid performance across all businesses during the abnormal market conditions in the first part of the year.” It adds, “As congestion eased and declining consumer demand led to a significant de-stocking in all segments, the expected normalization of the ocean market kicked in during the final stretch of [the] year.”
The company says last year its Ocean business unit “delivered the strongest result on record.” Maersk cites high freight rates and strong demand as factors, “particularly in the first half of the year.”
Recycling companies that shipped recyclables via container noticed the high freight rates from late 2020 to early 2022 as well as service shortcomings. The falling rates later last year provided some relief to recyclers.
The profitability of shipping lines began to change for the better in 2020. The positive earnings picture the past three years follows the 2010s, of which Maersk says only twice did any carrier record a positive EBIT of more than $500 million throughout that decade.
At least part of that decade’s red ink woes was assigned to vessel cargo space overcapacity. Shipping company alliances and subsequent ship scrapping seems to have played a role in curing that ailment for the shipping lines.
However, in early February the Hellenic Shipping News reported what it calls a “splurge” in new vessel orders in the container shipping sector.
The news service reports Italy-based Mediterranean Shipping Co. (MSC) has placed a $1.2 billion order for new vessels while France-based CMA CMG has ordered 12 new ships. Some of the orders pertain to making a shift to alternative fuels and cleaner burning engines (as increasingly mandated by global bodies), which would indicate the new builds are replacement capacity.
Whether capacity changes are an issue in the near future, Maersk says it sees demand factors affecting its ability to maintain profitability as soon as this year.
In its guidance for 2023, Maersk refers to an “expectation that inventory correction will be complete by the end of the first half, leading to a more balanced demand environment.” The firm points to the potential for “muted” global GDP growth.
Maersk forecasts the global ocean container market growth rate will be in a range of from minus 2.5 percent to plus 0.5 percent, if it makes positive territory.
Latest from Recycling Today
- Harsco brands slag-content asphalt as SteelPhalt
- ArcelorMittal puts French EAF conversions on hold
- Associations ask for effective EPR to drive textile circularity in Europe
- GESA report claims 72 countries recycled EPS in 2023
- Report: Saica exploring recycled paper mill project in Dayton, Ohio
- Hydro’s Alumetal to meet 15 percent of its energy demands through solar
- CSA Group publishes standard defining plastics recycling in Canada
- Second Cyclyx Circularity Center to be located near Fort Worth, Texas