Maersk sees Q1 boost from strong container demand

COPENHAGEN (Reuters) – Shipping group Maersk said on Wednesday that a surge in demand for container shipping will boost earnings in the first quarter and that it expects higher profits this year.

Increased demand for goods like furniture, exercise equipment and home improvement goods from shoppers sheltering at home in a worsening COVID-19 pandemic has triggered a spike in shipping rates, boosting Maersk’s earnings.

Maersk’s ocean shipping business, its largest division, “performed at record level in the quarter as a consequence of the strong rebound of demand,” Chief Executive Soren Skou said in a statement.

“Our continued progress makes us confident that we will continue to grow the earnings of the company as the economic situation normalises in 2021 and beyond,” Skou said.

Maersk, the world’s biggest container shipping line, said it expects earnings before interest, tax, depreciation and amortisation (EBITDA) before restructuring and integration costs at $8.5 billion-$10.5 billion this year, compared with 8.3 billion last year.

In the fourth quarter last year, EBITDA rose 85% to $2.71 billion, compared with $2.68 billion forecast by analysts.

(Reporting by Jacob Gronholt-Pedersen, editing by Louise Heavens)