TEU-mile demand is trending higher YoY due to the later date of Chinese New Year this year, with the higher demand keeping charter rates elevated as carriers are still chasing tonnage even as profitability continues to deteriorate. Maersk reported an EBIT loss of -$153m for its Ocean Shipping business in the 4th quarter, dragging down the company’s consolidated net earnings to -$70m despite positive contributions from its logistics and terminal businesses. Hapag-Lloyd avoided a loss in the 4th quarter as it reported preliminary EBIT earnings and net profit estimates of around $200m for the quarter, partly helped by non-cash extraordinary items.
Freight rates continued to slip ahead of the Chinese New Year with Maersk warning that the rate weakness could persist for longer than expected. That did not stop it from pushing ahead with its order for 8 units of 16,800 teu adding further to the bulging containership[ orderbook that has reached a new 15-year high of 35.7%.
Johnson Leung
Maersk to return to Suez route as losses mount in its Ocean Shipping business
Maersk reported a net loss of -$70m in the 4th quarter of 2025, with earnings dragged down by its under-performing Ocean shipping business. The company forecasts earnings to deteriorate further in 2026, with operating profits (EBIT) expected at between -$1.5Bn to $1.0Bn this year compared to $3.36 Bn in 2025, with full year net earnings to turn negative even at the higher end of its guidance. It warned that its Ocean Shipping profitability “could deteriorate and potentially be negative for a prolonged period,” with the increase in global vessel capacity in the coming years triggering a drop in freight rates that could persist for longer than expected. Despite these concerns, Maersk is leading the market in returning to the Suez route with a second service (ME11) set to switch from the Cape route in February following the return of the MECL service in January.
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