
Maersk targets billions in earnings from freight spike
The crisis in the Red Sea, where the Houthi movement targeted container ships, has led to an unexpected rise in earnings for shippers including the Danish giant A.P. Møller-Maersk. The firm has raised its operating income forecast by $3 billion (20.5 billion kroner). Higher freight rates in early 2024 drove the increase. Maersk changed its forecast from breaking even to expecting an operating income between $1 and $3 billion. The freight rate hike occurred as shipping companies, Maersk included, rerouted vessels south of Africa to avoid Red Sea hostilities, tightening market capacity and driving up prices. The first quarter saw Maersk profiting by $208 million. This revision is tempered by volatility in the container shipping market and uncertainties in supply and demand.