Maersk expects profit surge amid Red Sea tensions

Disruptions in the Red Sea have led Danish shipping giant Maersk to revise its earnings expectations, now forecasting an operating income of $3-5 billion for 2024. Previously, the outlook was $1-3 billion. The revised EBITDA estimate is $9-11 billion, up from $7-9 billion. Continued supply chain disturbances due to the situation in the Red Sea and robust container market demand are influencing these projections. The Houthi movement’s attacks on shipping since November 2023, in support of Palestinians, have prompted carriers to reroute around Africa, spiking freight rates. Despite these developments, the market remains highly volatile. Maersk will present its audited Q2 results on August 7, with preliminary revenue reported at $12.8 billion.