[250215.EN.SEA] Maersk Line Profit Up 50pc To US$2.3 Billion as Sales Rise 0.3pc in 2014

MAERSK Line, the world's biggest container shipping company with a 15.5 per cent market share, has posted a 50 per cent year-on-year 2014 profit increase to US$2.3 billion, drawn on revenues of $47.56 billion, an increase of 0.3 per cent.

The profit surge came despite average freight rates falling 1.6 per cent to $2,630 per FEU.

With global container shipping volumes forecast to increase 3 - 5 per cent in 2015. Maersk Line is aiming to grow in line with the market.

"Maersk Line improved its position and the start up of the 2M alliance has gone well," said Maersk Group CEO Nils Andersen.

During the year, the company fleet grew 11.5 per cent to 2.9 million TEU with the delivery of eleven 18,000-TEUers Five more will ply the Asia-Europe trade later in the first half.

“The achievement came from 5.4 per cent lower unit costs mainly due to improved network efficiencies and lower bunker price," said the annual report.

"Efficiencies were achieved through increased volumes in line with market as well as continued vessel network optimisation and active capacity management," Maersk said.

"To minimise the impact of the low and volatile freight rate environment, Maersk Line continued to absorb capacity by active capacity management in the form of idling, slow steaming and blanked sailings," the company said.

Looking ahead Maersk Line is expecting to better its 2014 underlying result of $2.2 billion in 2015. "Maersk Line aims to improve its competitiveness through unit cost reductions and implementation of the new 2M alliance," the company said.

Source : HKSG.