Maersk registers US$978 million H1 profit to take lead from 17 big carriers

DANISH shipping giant Maersk has again taken the lead out of 17 big carriers in its half-year financial results with only six reporting profit.

Maersk registers US$978 million H1 profit to take lead from 17 big carriersDANISH shipping giant Maersk has again taken the lead out of 17 big carriers in its half-year financial results with only six reporting profit.Maersk posted a US$978 million profit for a core EBIT margin of 7.3 per cent with the company's performance placing the shipping line well ahead of the rest.Carriers' average operating earnings turned positive in the second quarter of 2014, based on the average of those 15 carriers that reported quarterly financial results. The average margin improved from 1.9 per cent in the first quarter to 0.7 per cent in the second quarter, noted Alphaliner.The turnaround was aided by firm volume growth and lower costs. Total carrier liftings increased by 5.7 per cent in the second quarter, based on a comparison of 12 main carriers' reported volumes. Carriers also enjoyed lower bunker fuel prices and vessel charter rates, which trended lower by one per cent and five per cent respectively in the second quarter year on year.But freight rates remained under pressure with Far East-US west coast, Latin America and Australia rates witnessing the biggest year-on-year rate declines in the second quarter. The Far East-Europe trade proved to be a bright spot among main markets, with average rates to North Europe up 14 per cent in the second quarter while rates to the Mediterranean increased 24 per cent.Larger carriers such as Maersk and CMA CGM outperformed the smaller carriers (MSC does not publish financial results).Meanwhile, CSAV lies at the bottom, as the shipping line's undiversified service network, heavily dependent on the Latin America trades, suffered poor volume growth and lower rates this year. Ahead of the planned merger with Hapag-Lloyd, due to be completed before the end of the year, CSAV posted the lowest first-half operating margin of the carriers surveyed.But Taiwan's Wan Hai and Hong Kong’s OOCL bucked the trend with 6.6 per cent and 4.2 per cent profit increases respectively, which suggests that smaller carriers with tight cost control and yield management can make money, said Alphaliner.