Both A.P. Moller-Maersk and Orient Overseas (International) Limited (OOIL) reported solid results in the third quarter of the year for their respective shipping businesses, with Maersk upgrading its 2019 expectations.
In a statement on October 21, Maersk said that despite slower global demand growth and lower freight rates in the period, the group “recognised better than expected performance in Ocean.” This was driven by strong reliability and capacity management combined with lower fuel prices and continued margin improvements in terminal & towage, which the Danish shipping giant said has resulted in stronger-than-expected financial performance in the quarter.
For the period, revenue was US$10.055 billion and EBITDA was $1.656 billion. For the first nine months, revenue was $29.222 billion and EBITDA, $4.249 billion.
Maersk, looking at the financials for the third quarter and the updated outlook for freight rates, volumes and bunker fuel prices for the rest of the year, said it is upgrading its expectation for the 2019 result.
Its new expectation for EBITDA is in the range of $5.4 billion to $5.8 billion, up from the previous expectation of around $5 billion.
OOCL carries more volumes
Meanwhile, OOIL in a statement October 25 said total volumes carried by its shipping liner Orient Overseas Container Line (OOCL) were 4.1% higher in the third quarter of 2019 compared to the same period last year.
Total revenues increased by 5.8% to $1.646 billion. Loadable capacity increased by 4.7%. The overall load factor was 0.4% lower than the same period in 2018. Overall average revenue per TEU increased by 1.6% compared to the third quarter of last year.
For the first nine months of 2019, total volumes increased by 3.5% over the same period last year and total revenues recorded a 6.3% growth to $4.672 billion. Loadable capacity increased by 4.5%. The overall load factor was 0.8% lower than the same period in 2018. Overall average revenue per TEU increased by 2.7% compared to the same period last year.
All four major trade lanes reported growth in volume and revenue for the third quarter. There was also expansion in both volume and revenue in the first nine months of the year for all, except for the trans-Pacific lane which saw a small volume drop of 0.1%.
