Maersk sees its Q2 container volume better than expected

Maersk Line said on Wednesday that better-than-expected container volumes helped it upgrade its outlook for the second quarter, with production expected to be only 15-18% lower than it was in 2019. The company's initial decline to 20% to 25% was launched on May 13 when the COVID-19 pandemic caused damage to the global supply chain.

In a report, the world's largest container carrier said it expects less volume reductions, leading to a slightly higher Q2 earnings from Q1 and 2020 results than Q2 / 2019 results. Maersk will announce its Q2 2020 business results on August 19.

"We have been able to navigate well in a very difficult second quarter, adjusting capacity to demand to maintain high utilization of our network and managing our cost across the company" the Managing Director said. Executive of AP Møller-Maersk - Søren Skou - said in the report. The company reported a profit of US $ 197 million in the first quarter of 2020 after a 5% reduction in volumes and the use of low sulfur fuels with higher prices in accordance with National Maritime Organization's regulations. International.

IHS Markit, the parent company of JOC.com, on May 20 lowered the outlook for international trade volumes in 2020, forecasting a 10.1% decline from the previous year after predicting an increase of 2,1% in February. The revised forecast expects container output to rise again to 10.3% and 4.4% by 2021 and 2022, before entering a period of low growth with a single digit.

Global container volumes will drop by 15 to 25% in the second quarter, depending on each carrier, Neil Glynn - transport researcher at Credit Suisse in Europe - told JOC. He forecasts container output in the second half of the year will be reduced by 10% compared to 2019.

Most regions will see a decline in container shipping volume in 2020 compared to the previous year, with consumption-supported areas from developed countries going down the most, said Nilesh Tiwary - at Drewry Maritime Financial Research - told JOC. Container volume this year will fall by 8% compared to 2020, and then increase back to 13% by 2021, he said.

Phaata (Source JOC)

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