[EN-SEA] "Maersk" Hits First Annual Loss Since World War II - US$ 1.29 Billion

DANISH shipping giant, AP Moeller-Maersk, which owns the world's biggest container carrier, suffered its first annual loss since World War II as freight rates dropped 28 per cent year on year and global consumer demand evaporated.

Maersk posted a net loss of DKK7.03 billion (US$1.29 billion) based on 17 per cent less revenue of DKK260 billion which stood against the company's 2008 profit of DKK17 billion.

The container business lost $2.09 billion last year despite the company's control of 15 per cent of the world market. "In the container shipping market, a 7-10 per cent addition of tonnage is expected for the global container fleet," said the statement accompanying the results.

"Cargo volumes are expected to rise by 3-5 per cent in 2010 relative to 2009 and freight rates are also expected to rise. This will lead to a significant improvement in results if the level of vessels taken out of service is sustained. However, rates are not expected to lead to an acceptable return in 2010."

APM Terminals experienced a continued stabilisation of volumes in the beginning of 2010. The overall volumes are expected to rise moderately in 2010, said the statement.

More positively, tanker markets have benefited from the cold winter and declining oil stocks in early 2010, said the company.

But rates remain unsatisfactory, and the addition of new tonnage combined with weak demand for crude oil and refined products is expected to cause challenging market conditions in 2010, said the statement.

Source : HKSG, 05.03.10.