The hottest Maersk claims that it is still optimis

  • Detail

Maersk claims that it is still optimistic about the prospects of the liner market

benefiting from the liner business and cost cutting, Maersk is expected to make a new high profit this year and is optimistic about the prospects of the liner market

this year's container transportation market can be said to have played an extraordinary role, which not only exceeded the usual prediction of the slow recovery of the market in the first year after the financial crisis, but also surprised some bears. The every move of Maersk Group, a shipping giant, has always attracted much attention. According to its performance and propositions this year, it can help us to catch some signs of changes in this industry

benefiting from the improvement of the global economy and effective cost saving projects, the performance of Maersk Group's container sector is eye-catching. Boosted by this, the performance of Maersk Group has improved significantly this year. On November 10, Maersk Group released a new performance report, saying that its total revenue in the first three quarters was $41.415 billion, up 17% year-on-year, and its net profit reached $4.2 billion, completely saying goodbye to the nightmare of a loss of $1.37 billion in the same period last year

as the sale of British food store netto by dansk supermarket a/s, a supermarket of Maersk Group, will be completed in the first half of 2011, this income is not included in the expected income this year. Nevertheless, based on the simultaneous rise in volume and price this year, Maersk Group expects to make a profit of US $5billion in 2010, about 25% higher than the forecast in the interim report on August 18. This is the third time that Maersk Group has raised its profit forecast in four months. If so, Maersk Group will break the profit record of $4.69 billion in 2004

an Shinian, chairman of Maersk Group, was confident. While releasing the performance report, he announced that Maersk Group was ready to meet any competition. Please check whether the main motor source or communication line was connected properly! " The test of the environment is quite arrogant

anshianian said that Maersk Group's efforts to reduce costs have been effective and have produced huge benefits, and the competitive advantage obtained from this can help it cope with the freight rate and volume pressure it may face in 2011. However, an Shinian said that he is still optimistic about the development of container shipping industry next year

liner business ensures the group's profits

at present, Maersk Group's container shipping and related businesses include Maersk container shipping, South Africa container shipping, MCC, logistics and other businesses. Since January this year, the truck transportation yard warehouse business and container manufacturing business, which were originally related to container shipping, have been classified into Maersk terminal business and industrial business respectively

this part of the shipping business, which accounts for more than half of the group's revenue, is indeed an open-loop control system, ensuring an operating profit of nearly $2.25 billion in the first three quarters, while a loss of nearly $1.59 billion in the same period last year. "The profit is mainly generated by Maersk liner, and its performance has improved by $4billion, which is a significant improvement," an Shinian said. "The contribution of cost savings is more than half. This is not only the improvement of market demand and the rise of route freight rates, but also our good preparation for market change."

in the first three quarters, the revenue of Maersk liner was 19.5 billion US dollars, an increase of 34%, and the cargo volume increased by 7% to 10.8 million TEU. The average freight rate per feu also increased from $2299 last year to $3075 this year, an increase of 34%. An Shinian believed that this was an excellent performance, which he was satisfied with, and said that the performance benefited from the improvement of the market environment, but the first reason was the healthy operation of the company's business

other major businesses rose more or fell less

in the first three quarters, Maersk Logistics (Denmark)'s shipping volume and supply chain management business increased by 17% and 15% year-on-year, respectively, similar to the market average, while the air transport business increased by 30%, which was higher than the market average. Similar to the container shipping sector, the volume of logistics business increased in the third quarter, but slowed down compared with the previous two quarters. The $14million performance of this sector was mainly due to volume growth and continuous cost reduction, but the effect was partially offset by freight pressure

compared with the same period last year, Maersk tankers' loss in the first three quarters narrowed to $193 million, with a loss of $103 million, including a loss of $107 million in the third quarter

the profit of oil and gas unit increased from US $958million to US $1.34 billion, mainly related to the increase of oil price by 35% to US $77/barrel during the period

the most "stable" is the Maersk supermarket business, with a revenue of $7.629 billion in the first three quarters, almost no growth. Non Danish supermarkets, including Germany, Poland, Sweden and the UK, saw a slight increase in business, with a profit of $240million, down 1%

Maersk's oil and gas production business revenue was US $7.356 billion, an increase of 11% year-on-year. This is because the oil price increased by an average of 35% year-on-year in the first three quarters. Compared with the profit of $958million last year, the profit this year increased to $1.339 billion

cost reduction and efficiency increase strategy

Maersk Group has been "tightening its belts" since the financial crisis. This year, Maersk Group continued to focus on reducing costs, and the $500million cost saving project launched at the beginning of the year continued to be promoted. Maersk Group also continued to optimize its management structure and reduce personnel expenses. In the first half of the year, the number of staff in container shipping and related business sectors (except service centers) decreased by 1150 compared with the end of last year

"this makes us less affected by market fluctuations," an Shinian said. "Although the overall freight rate is still lower than the level in 2008, we feel we are ready for everything." This is why Maersk Group claims to see the encouraging profitability of the entire industry

anshianian said that Maersk's average operating profit per feu was $451, compared with $85 in 2008, indicating that the company can cover the costs of the past two years. In fact, the unit cost of Maersk liner fell by 2% this year, which is 8% excluding the impact of fuel costs. This year, Maersk liner continued to reduce consumption and greenhouse gas emissions. The promotion of low-speed navigation on more routes effectively reduced fuel consumption. Therefore, despite the year-on-year increase in cargo volume, fuel consumption fell by 7% during this period. However, due to the 47% year-on-year increase in the price of container marine fuel in the first three quarters, the total fuel cost rose to $33billion during the period

the cost saving and structural optimization measures launched by Maersk Group in 2008 have now been fully integrated into daily route operations, which has made a positive contribution to the group's revenue. An Shinian said that Maersk Group generated huge profits by disposing of its non-performing assets and realized free cash flow of $4.2 billion, which helped reduce the group's net interest debt to $13.7 billion

ensuring "quality" is more important than ensuring "quantity"

"in terms of transportation capacity management, the suspended ships of the whole industry during the financial crisis have done better, and I also think competitors are generally interested in pushing up the freight rate level," he said, "Everyone is becoming more and more professional. Forced by fierce competition, we all learned a lot in 2009. I hope these experiences will accompany us for a long time. Price war is the most fatal. I don't think the whole industry has a preference for price war."

Maersk Group said that the main route traffic volume between Asia and Europe increased by 2% compared with the first three quarters of 2009, while the return route traffic volume decreased by 4%. The traffic volume between Asia and Europe maintained the same level in the same period of 2009; The cargo volume on the trans Pacific route increased by 7%; The traffic volume of Atlantic route increased by 3%; The volume of African routes increased by 7%; Latin American and Oceania routes increased by 16% and 3% respectively. Maersk Group believes that in addition to the role of the United States and Europe importing from low-cost countries, the market growth this year also benefits from the pull of emerging markets. In the first three quarters, the volume of intercontinental routes operated by Maersk liner and South Africa container shipping increased by 12%

despite the great success in the first three quarters, anshianian admitted that Maersk Group did not achieve high volume growth like some competitors. "We spit out some volume share this year, one is because of the price rise, and the other is because of insufficient capacity," an Shinian said. "We encountered a serious shortage of equipment in the first half of the year and the early third quarter. Once the capacity situation improves, we will be able to recover some volume share. But I can't rule out the pressure on market share in early 2011."

continue to promote business integration

Maersk terminals (apmt) maintained a positive profit trend, but after Maersk Group decided to include inland transportation services, apmt's overall profit declined slightly

"inland transportation services are included in apmt to be closer to the services of Maersk liner sector," anshinian said, "That makes apmt's profits decline. We don't have much patience to improve the profitability of inland container services, but we will improve next year's performance. The idea of combining inland and port services is correct, and we have seen synergy now. The inland business is smaller than the port business, and we see opportunities for profit improvement. Although it won't be improved in a year or millions of dollars, we think this improvement will Is obvious. " Apmt's revenue in the first three quarters was $3.1 billion, and its operating profit increased by 98% to $784million, but most of it came from asset sales. According to Drury's statistics as of September 30, the cargo handling volume of global container terminals increased by 13% in the first three quarters. Based on the proportion of equity, apmt throughput increased by only 3% to 23.5 million TEU, which is related to the reduction in the number of operating terminals. After all, apmt terminated six terminal businesses, including Auckland and savannah in the United States, Kaohsiung and Yantian in Taiwan, Genoa in Italy, and Dunkirk in France. Other terminals maintained an 8% increase in cargo volume. However, the processing capacity of apmt, excluding Maersk liner and South Africa container services, increased by 13%. Companies outside Maersk Group contribute 44% of the processing capacity to apmt. Thanks to cost reduction, the EBITDA of apmt business itself increased from 24.1% to 25.6%. However, the cost restructuring and the decline in the revenue of trucks and container yards (which has just been classified into apmt) have a negative impact on profits. Apmt's overall EBITDA decreased from 21.6% to 20.9%

anshianian admitted that apmt lost some market share, but "it is a problem of growth mode. We have less contact with China (so we missed China's economic growth this year). Apmt is looking for more growth markets, and we see" the increase in business volume in the non Maersk liner sector - this is as high as 44%, which we think is good progress. " As part of strengthening its focus on emerging markets, apmt signed a joint venture agreement on the new container terminal in Santos, Brazil. A concession agreement was signed on Monrovia port in Liberia in the third quarter. Gujaratpipavavport (LTD) successfully made an IPO in India

focus on improving customer service next year

anshianian also said that the improvement of Maersk's group costs was better than expected, and the company cut costs by as much as $1billion, exceeding the expected $500million. He said that the focus in 2011 will be on improving customer service

"we have maintained a high level of dialogue with customers and are trying to improve our service positioning and support system," he said. "We have achieved higher customer satisfaction and are far behind our peers in terms of the attendance rate. After completing the cost reduction as far as possible, we will focus on customers in the future."

judging from the recent customer plans, Maersk Group is informing its Atlantic customers of three price increases in 2011. Among them, April 1 and July 1 are for all box types between North America and northwest Europe/the Mediterranean and the Black Sea

Copyright © 2011 JIN SHI