Maersk upgrades outlook amid higher freight rates

Danish shipping giant Maersk has revised its expectations for a stronger 2024 due to a robust third quarter and the ongoing crisis in the Red Sea. The company now forecasts an operating profit between $5.2 and $5.7 billion, up from the earlier estimate of $3 to $5 billion. The increase in freight rates has been attributed to redirection of shipping routes around the Cape of Good Hope, avoiding the Red Sea to mitigate the risks of attack. One of Maersk’s own vessels had previously been targeted by the Houthi movement, leading to rerouted paths on a longer journey. The pivot has led to tightened market capacity and boosted freight prices, ultimately elevating revenues for shipping companies like Maersk. Preliminary figures show Maersk achieved revenues of $15.8 billion in the third quarter, pending final revision. The full quarterly report is scheduled for release on October 31st.