Maersk collects $2.9 billion profit for 2020 on soaring container rates

New York — Danish shipping firm A.P. Moller-Maersk increased 2020 profits to $2.9 billion from just $509 million in the previous year and expects earnings to rise further for 2021 as container rates remain near multi-year highs on strong demand for Asia exports.

The world's largest container shipping company said it expects its EBITDA to climb into the $8.5-$10.5 billion range for 2021 from $8.23 billion last year as the shortage of empty containers at Asian ports keeps spot rates elevated in the months ahead.

"Maersk expects the current exceptional situation with the demand surge leading to bottlenecks in the supply chain and equipment shortage, which contributed approximately $1.5 billion to EBIT in 2020, to continue in Q1 and normalize thereafter," the company said in its earnings report.

Platts Container Rate 1 – North Asia to UK-Continent – ended 2020 at $6,800/FEU, up from a low point in the year of $1,175/FEU on May 14. The stunning turnaround from the depths of the coronavirus pandemic was driven by a surge in US and European demand for goods from Asia as communities endured stay-at-home orders.

Total container volumes handled by Maersk fell by 5% in 2020 to 12.6 million FEUs. Volumes increased overall for shipments to North America but were lower from 2019 on trade lanes to Europe, the Middle East, Latin America and Africa, mainly due to the effects of the pandemic, the company said.