Maersk (Maersk) has sustained its positive momentum through the second quarter of 2024, achieving notable growth across all sectors and significantly enhancing its financial performance.

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The company reported an EBIT margin of 7.5%, a substantial improvement from the 1.4% seen in the first quarter. Ocean profitability saw a marked increase, while Logistics and Services continued their steady expansion. The Terminals segment also performed robustly.

On August 1st, Maersk revised its 2024 forecast, citing the expansion of the Red Sea crisis and ongoing strong market demand as key factors. The Ocean segment experienced considerable volume growth and higher freight rates, particularly for goods originating from Asia, as supply chain pressures intensified.

However, the Red Sea crisis and the need to reroute vessels south of the Cape of Good Hope led to increased operational costs. Despite these challenges, profitability returned to positive territory. While earnings were lower than in the same quarter last year, the performance was significantly better compared to Q1 2024 and Q4 2023.

The Logistics & Services division recorded a 7% year-on-year increase, driven by higher volumes across all product categories, which more than compensated for lower rates. Profitability in this segment improved both sequentially and year-on-year, thanks to greater asset utilization, effective cost management, and advancements in addressing client implementation issues within North America’s ground freight sector.

Maersk’s Terminals division continued to see increased throughput, particularly in North America. Revenue per move surged, driven by higher tariffs and storage fees, though the cost per move only rose slightly. Strong sales growth and rigorous cost control measures contributed to one of the highest EBITDA levels the company has ever achieved.

Vincent Clerc, CEO of Maersk, commented, “Our results this quarter confirm that all our businesses are moving in the right direction. Market demand has remained strong, and the situation in the Red Sea continues to exert pressure on global supply chains. We anticipate these conditions will persist throughout the remainder of the year. In response, we have invested in additional equipment across all our businesses to better support our customers amid these ongoing disruptions.”