MSC is pulling further ahead from Maersk. CMA CGM and Evergreen also gaining market share.
Maersk is launching new shuttle service connecting Port Said East and Northern Italian port, Vado Ligure. MAERSK PALERMO will start the service, calling Port Said East on June 30.
Maersk, Hapag-Lloyd and ONE will cooperate on the US West Coast-Central America route through a joint service arrangement on 2 existing services starting from the end of June 2022. Maersk, through its Sealand subsidiary, will join the MAREX/CCE service currently operated by Hapag-Lloyd and ONE, replacing one of the 2,800 teu ships from ONE, with the 3 partners to operate one ship each on the service that calls at Los Angeles, Mazatlan, Manzanillo, Lazaro Cardenas, Acajutla, Corinto, Caldera, Pu
Maersk contract rates are up $1400/FFE YoY, which, in our estimates, contribute $10bn YoY additional revenue/profit. Fuel costs inflation amount to $1.5-3.5bn. Acceleration in average freight rate increase may be unique to Maersk and help close its gap relative to peers on EBIT margin.
The 22Q1 results were near high end of consensus estimate. But broadly consistent with the results from other smaller liners e.g. sequentially higher earnings driven by higher freight rates despite of lower volume.
The 2M/SM Line strategic cooperation agreement on the Far East-West Coast North America route will be terminated on 8 May 2022, one year earlier than scheduled. The 2M/SM Line cooperation started in April 2020 after HMM ended the 2M cooperation to join THE Alliance. The agreement was expected to run until March 2023, but has been prematurely terminated by the three parties. It will affect the TP-8/Orient/PS1 service jointly operated by the 2M and SM Line, with 6 ships of 10,600 teu to 11,290
Maersk will launch a new TP28 transpacific service connecting Cai Mep, Yantian, Ningbo, Shanghai, Houston, Norfolk, Cai Mep using 11 ships of 4,500 teu. The new service is scheduled to start on 23 March 2022 with the 4,530 teu MAERSK WALLIS. The service will take an eastbound round-the-world route, using the Panama Canal from Asia and returning via the Suez Canal. Maersk will also concurrently revise its current TP20 service with the Cai Mep call replaced by a new call at Jakarta, while the ves
"The strong result in the quarter reflects the continuation of the exceptional market situation within Ocean caused by the global disruptions to the supply chains, which have led to further increase in container freight rates." Maersk new release, 14 January 2022
Maersk has reached an agreement on 22 December 2021 to acquire LF Logistics from current owners Li & Fung (78.3%) and Temasek Holdings (21.7%) for a total enterprise value of $3.6 Bn, with an additional earn-out of up to $160M from future earnings. The transaction will involve LF Logistics' In-Country Logistics (ICL) business which has a projected revenue of $1Bn with an adjusted EBITDA of $250M in 2021, implying a 14.4x EBITDA multiple on the purchase price. The ICL business operates a network