Maersk Line profit up 23.5pc to US$685 million, fresh tonnage on order

MAERSK Line has posted a 23.5 per cent year-on-year third quarter profit increase to US$685 million, drawn on quarterly revenues of $7.07 billion.

¤† am very satisfied with the result. Our strategy is paying off. We have proven it is the right strategy for us. Now we have to prove it is sustainable in the long-term," said Maersk Line CEO Siren Scour.

Maersk Line, the world's biggest container shipping company and a unit of Denmark's AP Muller-Maersk Group, has revealed that new vessel capacity - 425,000 TEU in total - is needed for delivery in 2017-2019 "to grow with the market".

"We expect to start ordering new vessels within the next six months" said a company statement.

"In West Africa, Ebola has negatively affected trade and business in Guinea, Liberia and Sierra Leone. Maersk Line maintains shipping services to and from these countries and our local offices remain operational.

"We believe it is important not to isolate the affected countries, to keep trade and business working, and to ensure aid supplies can be delivered, " said the company statement.

On October 9, the US Federal Maritime Commission (FMC) announced that it will allow Maersk Line£r vessel sharing agreement (VSA) with MSC to come into effect.

"The US was the only remaining jurisdiction where the VSA ?also known as 2M - had to obtain approval. The VSA will enable us to offer our customers more services and ports in the Asia-Europe," the statement said.

"We will also benefit from cost savings (estimated at $350 million per annum) through the deployment of larger and more efficient vessels and improved utilisation.

In Q3, Maersk Line£r bunker consumption was 2.4 per cent lower compared to Q3 2013. Bunker efficiency improved by 5.9 per cent to 916 kg/FFE (974 kg/FFE). 2014 expectation.

Due to the strong financial performance, Maersk Line expects a full-year result above $2 billion. This is a specification of the previous significantly above 2013 $1.5 billion result expectation based on anticipated global demand growth of three to five per cent.

¤”e are on a strong trajectory, but we also have some big challenges ahead of us. Rates are on a long-term, declining trend, the profitability on the east-west trades is unsustainable, and supply will continue to outstrip demand.

"Imports to emerging markets are also slowing down. So we have to remain focused and committed to cost leadership,?said Mr Skou.