Maersk Sticks to Profit Forecast, Iran War Clouds Outlook
Maersk reported $1.73 billion in EBITDA, above forecasts, but said higher fuel costs and disrupted routes could pressure freight rates.
- On Thursday, shipping giant Maersk reported first-quarter EBITDA of $1.73 billion, beating the $1.66 billion forecast. Maersk CEO Vincent Clerc warned the Iran war clouds the outlook for freight rates and costs.
- Since the conflict began on February 28, the Strait of Hormuz closure forced Maersk to reroute vessels around Africa. This energy shock creates about $500 million of extra costs per month, which the company is passing to customers.
- Maersk, a bellwether for global trade, projects container volume growth of 2% to 4% this year but cautioned the outlook remains "highly uncertain" due to higher energy prices and trade constraints in the Upper Gulf region.
- Shares of Maersk fell 2.9% Thursday amid concerns rising fuel prices could erode profits. Jyske Bank analyst Haider Anjum noted freight rates are not expected to compensate for higher fuel costs.
- Assuming oil prices remain in the $90 to $100 range through 2026 and the conflict resolves soon, growth targets remain viable. Maersk added the balance of risks is on the downside.
11 Articles
11 Articles
Maersk hikes shipping prices to offset cost hit from Iran war
Chief executive Vincent Clerc said the closure of the Strait of Hormuz could start impacting global trade and consumer demand. Shipping container giant Maersk has revealed it is facing a 500 million US dollar (£367 million) hit each month from disruption caused by the Iran war and is passing on costs to customers through higher freight rates. The Danish group, which carries around one in five of the world’s seaborne containers, said costs will s…
Shipping giant boss warns of price hikes in coming months due to Iran war impact
The U.S.-Iran war had created a “new wake-up call” for global trade, Maersk CEO Vincent Clerc told CNBC on Thursday, warning that the impact could worsen in the coming months. Speaking to CNBC’s “Squawk Box Europe” after Maersk posted its first-quarter earnings, Clerc said the group is facing intense cost pressures that would have to...
Coverage Details
Bias Distribution
- 43% of the sources lean Left, 43% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
