Maersk rebounds with profit amid Red Sea crisis

A.P. Møller-Maersk has turned a previous $442 million loss into a $208 million profit. Contributing to this turnaround are rising freight prices, caused in part by the Red Sea crisis where ships are often attacked by the Houthi movement, leading to rerouted ships and reduced market capacity. The first quarter has met the company’s expectations, and CEO Vincent Clerq forecasts that these factors will continue to influence future quarters. However, he also expects an increase in the supply of container ships, which may eventually lower freight prices. Maersk’s Ocean division remains its largest, despite a significant drop in revenue and operating profit. Conversely, the logistics and port divisions have seen improvements. Lastly, Maersk has separated its towage company Svitzer into an independent entity, with shares first traded in Copenhagen, allotting two Svitzer shares for each Maersk share to existing shareholders.