jwesth @jwesth: "𝙎𝙩𝙖𝙗𝙞𝙡𝙞𝙨𝙖𝙩𝙞𝙤𝙣 𝙛𝙧𝙚𝙞𝙜𝙝𝙩 𝙧𝙖𝙩𝙚𝙨 𝙝𝙚𝙡𝙥𝙨 𝙈𝙖𝙚𝙧𝙨𝙠 🚢..."

United Kingdom

𝙎𝙩𝙖𝙗𝙞𝙡𝙞𝙨𝙖𝙩𝙞𝙤𝙣 𝙛𝙧𝙚𝙞𝙜𝙝𝙩 𝙧𝙖𝙩𝙚𝙨 𝙝𝙚𝙡𝙥𝙨 𝙈𝙖𝙚𝙧𝙨𝙠 🚢 $MAERSKB.CO (A P Moller Maersk) shares are up over 7% today despite no company-specific news. I see this momentum coming after container freight data is now starting to show a stabilising trend. This follows months of declining container freight rates on the Asia-Europe route. Maersk's top and bottom line is highly sensitive to freight rates, which are set in a highly competitive market - which currently has severe overcapacity. 📉 Following the Red Sea conflict that began in December, freight rates from Asia to Europe for a 40-foot container rose to over $5,000 in February - approximately quadrupling pre-conflict levels. But since then, we have witnessed a gradual normalisation of rates. The recent stabilisation at around $3,000 is good news for Maersk. 👨‍💼 Maersk's management has previously indicated that 2024 will not be a profitable year. Their latest guidance for the year from February was an operating profit (EBIT) of -5 to 0 billion dollars. The share fell by 15% on the day. 💡 We'll get Maersk's first quarter earnings on Thursday next week. Now that they are a third of the way through the year, they have more clarity on how the year may end. This may allow them to revise their otherwise conservative expectations for 2024 - which may be what the market is speculating today. $DSV.CO (DSV A/S) $ZIM (ZIM Shipping Services Ltd) $KNIN.ZU (Kuehne & Nagel International AG) $HLAG.DE (Hapag-Lloyd)

5 Mentioned

MAERSKB.CO

A P Moller Maersk

DSV.CO

DSV A/S

ZIM

ZIM Shipping Services Ltd

KNIN.ZU

Kuehne & Nagel International AG

HLAG.DE

Hapag-Lloyd