Integrated logistics company Maersk has unveiled its first quarter results, saying it aligned with expectations and showed a strong recovery in earnings compared to the final quarter of 2023.
Amid a prolonged Red Sea crisis, Maersk says its results were driven by a good performance in terminals and a higher demand.
With these conditions expected to continue well into the second half of this year, Maersk has lifted the lower end of its guidance range.
Maersk CEO Vincent Clerc says demand is trending towards the higher end of the market growth guidance, with Red Sea conditions set to continue.
“We had a positive start to the year with a first quarter developing precisely as we expected,” Clerc says.
“This not only supported a recovery in the first quarter compared to the previous quarter, but also provide an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year.
“However, we still anticipate the high number of new vessels being delivered during this and next year to eventually offset these factors and put the ocean markets under renewed pressure.”
Clerc says Maersk will “relentlessly continue” to pursue its cost agenda, with the aim of rolling back the disruption linked cost in ocean and restoring margins in the logistics and services sectors.
“This work on cost, helped by our strong value proposition, is crucial in supporting our customers through the ongoing volatility and build a more resilient business,” Clerc says.
Maersk says the ocean sector results were impacted by the Red Sea situation, with increased market rates and costs seen due to the supply chain disruptions. However, strong volumes ensured results improved in the first quarter of 2024.
When it comes to logistics and services, significant growth in volumes is keeping the brand optimistic, while a strong start to the year in the terminals sector ensured good volume growth.