Strong freight rates and resilient container shipping volumes for most of last year delivered healthy profits to the AP Møller-Maersk group, while its emerging logistics arm also began to make progress.
The company posted full-year revenue of $55.5bn, an 8.6% increase on 2023, while its EBIT nearly doubled, to reach $6.5bn, representing an EBIT margin of 11.5%, compared with 2023’s 7.8% and EBIT of $3.9bn.
Once again, its ocean liner business dominated group returns – freight shipping generated just under $37.4bn, with an EBIT of $4.7bn, compared with the $2.2bn in 2023, reflecting “the significant increases in freight rates, together with strong volumes in 2024”.
Volume growth, however, was flatter than the market, 3.6% for the full year and reaching 12.3m teu, compared with an average market growth of around 5% last year. Volume growth in the fourth quarter slowed to just 0.8%, although over the past 12 months Maersk vessels have been almost consistently full, said CEO Vincent Clerc.
“While our 2024 volume growth was below our estimated global container market growth, it’s important to note that our vessels have been sailing at full capacity throughout the year, with vessel utilisation at an excellent 96% for the full year,” he added.
Despite a limited newbuilding orderbook in comparison with some of its largest competitors , the company continued to insist it would maintain its fleet capacity at around 4.4m teu, and that volume growth in 2025 would be captured by the “greater asset efficiencies offered by the Gemini network”, Mr Clerc said.
“It’s true that MSC and CMA [CGM] have a very ambitious investment programme in the new fleet. It’s true also that we have been very clear on what we want to do with ocean shipping, which is to stay where we are, because we don’t see any correlation between size and increased margin,” he said.
He added that future M&A activity would be focused on the group’s non-shipping operations.
“When the time comes, and we feel that we have the right solidity in the platform, from a profitability, from a control, and from a tech perspective, we will see when it’s time to re-engage on M&A, but that will be on the logistics side, or the terminal side, but it won’t be by doing something big in shipping, which would close a gap but has no impact on profitability,” he explained.
He added that the Gemini Cooperation was expected to deliver some $500m in costs savings to each carrier per year, with Maersk expecting a $250m saving this year as, following the current phase-in period, the Gemini network will swing into full operation from June.
Meanwhile, parts of its Logistics division – the key plank in its container integrator strategy – continued to struggle last year, despite logistics revenue being up $1bn on 2023, to reach $14.9bn, while EBIT came in at $538m, compared with $446m the year before.
Mr Clerc explained: “Despite increased revenue and improved margins in warehousing, lower results in operational one-off costs in last-mile and ground freight contributed to an EBITDA margin decline to -5.5% for the fourth quarter.
“Revenue also increased in our largest product family, transported by Maersk, where solid volume growth in most of our products, together with the higher rates in LCL and Air, resulted in a 9.9% year-on-year increase, to a total of $1.8bn,” Mr Clerc said.
Its port operating subsidiary, APM Terminals, had another bumper year, however, with the fourth quarter described as the best in its history.
Full-year volumes at APMT facilities were at 13.1m, and its full-year revenue grew 16%, to reach $4.5bn, “driven by high volume in North America, combined with inflation-offsetting tariff increases, a positive customer and product mix, and higher storage revenue from localised congestion”.
