Shipping company Maersk sees record profit as demand surges

By AP News

Share:

COPENHAGEN, Denmark (AP) — The world’s biggest shipping company said Wednesday that 2021 was its most profitable year yet, with Denmark’s A.P. Moeller-Maersk bringing in $18.7 billion as surging demand from a rebounding global economy led to .

Denmark’s A.P. Moeller-Maersk CEO Soeren Skou presents the annual accounts for AP Moeller-Maersk at a press conference at the Maersk Museum, Arcade House, in Copenhagen, Wednesday, Feb. 9, 2022. Denmark’s A.P. Moeller-Maersk says 2021 was the most profitable year yet for the world’s biggest shipping company. (Ida Marie Odgaard/Ritzau Scanpix via AP)

COPENHAGEN, Denmark (AP) — The world’s biggest shipping company said Wednesday that 2021 was its most profitable year yet, with Denmark’s A.P. Moeller-Maersk bringing in $18.7 billion as surging demand from a rebounding global economy led to supply chain logjams .

Profits before taxes soared last year from $3.3 billion in 2020, while 2021 revenue came in at $61.8 billion, up from $40 billion. CEO Søren Skou said that “exceptional market conditions led to record-high growth and profitability.”

In the last three months, revenue soared to $18.5 billion from $11.3 billion in the same period the previous year. Profits in the fourth quarter came in at $6.3 billion, up from $1.3 billion.

The Copenhagen-based company said that as the global economy began recovering from the depths of the COVID-19 pandemic and lockdowns, strong demand put pressure on supply chains, especially in the U.S. as imports surged.

Skou noted that customers faced “chain disruptions and severe challenges” and that the record-high rates caused by pandemic-related congestion at ports, shipping container shortages and a surge in consumer demand drove Maersk's record profits.

The global growth outlook is strong for 2022, the company said, “but risks are mounting for most regions. Moreover, it is highly uncertain if goods consumption will continue to drive up demand for logistics and container flows, especially when demand for services normalizes.”

The current market situation was expected to persist into the second quarter before easing later in the year, Skou said.

Growth in global demand for containers is expected to increase this year in the lower end of the 2% to 4% range, despite the strong economic outlook.

Share:

In this article:

Industries:
Industrials

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for Investing Intel Newsletter