- A.P. Moeller-Maersk (OTCPK:AMKBY) says the global container market could expand by as much as 5% in 2021, in a rebound from the pandemic-driven harm to trade in this year's H1.
- "Right now we see volumes slightly above the same period from last year after falling off a cliff in the second quarter," Maersk CEO Soren Skou says. "A lot of the money that had previously gone into holiday travel and restaurant visits has gone to goods like flat screens and home improvement."
- "An unexpected recovery in demand after the second-quarter slowdown brought back all available tonnage and significantly higher prices in the short-term freight market," Skou says.
- Maersk's Q3 revenues fell 1.4% Y/Y to $9.92B and shipping volumes slipped 3.6%, which was more than offset by lower costs from reduced sailings, lower fuel costs and a 4.4% increase in average freight rates.
- Global container shipping rates have surged to records on resurgent restocking demand in the U.S. and Europe, container scarcity at export hubs, and changes in freight flows because of the pandemic.
- Skou does not expect the global trade outlook to change fundamentally after the U.S. presidential election, but "when it comes to the transatlantic relationship, Pres. Biden will probably have a more collaborative approach as far as Europe is concerned."
- Maersk yesterday raised full-year guidance for the second time in a month, now expecting FY 2020 EBITDA of $8B-$8.5B vs. $7.5B-$8B previously.