jwesth @jwesth: "𝙈𝙖𝙚𝙧𝙨𝙠 𝙨𝙩𝙤𝙘𝙠 𝙪𝙥 𝙖𝙛𝙩𝙚𝙧 𝙨𝙩𝙧𝙤𝙣𝙜𝙚𝙧..."

United Kingdom

Edited

𝙈𝙖𝙚𝙧𝙨𝙠 𝙨𝙩𝙤𝙘𝙠 𝙪𝙥 𝙖𝙛𝙩𝙚𝙧 𝙨𝙩𝙧𝙤𝙣𝙜𝙚𝙧 𝙚𝙖𝙧𝙣𝙞𝙣𝙜𝙨 𝙚𝙭𝙥𝙚𝙘𝙩𝙖𝙩𝙞𝙤𝙣𝙨 𝙛𝙤𝙧 𝟮𝟬𝟮𝟰 🚢 The Danish container shipping giant $MAERSKB.CO (A P Moller Maersk) is up after management raised expectations for the full year 2024. Maersk is seeing that the disruptions caused by the Red Sea situation continue to support freight rates and profits. 🌊 This is the second upward adjustment this year, but it also follows what many investors thought of as conservative guidance coming into the year. With the announcement, Maersk now expects EBITDA to be between $7 -$9 billion and EBIT to be between $1 to $3 billion. Previous expectations were $4 to $6 billion and $-2 to $0 billion, respectively. 🏴‍☠️ The conflict in the Red Sea that started back in December has lifted freight rates. With the vessels now sailing south of Africa rather than through the Red Sea, the journey from Asia to Europa is approximately ten days longer, removing container capacity in the market. This has mitigated some of the overcapacity in the otherwise highly competitive market and allowed shipping companies to charge higher prices in a market where they otherwise are price takers. 🌍 While the situation in the Red Sea now has lasted for half a year, the unknown is for how long it will continue. A solution to the conflict with resumed passage through the Red Sea, would quickly add additional container freight capacity to a market that fundamental have overcapacity. This could eventually revert freight rates from their current elevated levels. $DSV.CO (DSV A/S) $KNIN.ZU (Kuehne & Nagel International AG) $ZIM (ZIM Shipping Services Ltd) $HLAG.DE (Hapag-Lloyd) $DHL.DE (Deutsche Post AG) $DHL.DE

7 Mentioned Show all