02/08/2023
Maersk recently published its financial results for the fourth quarter of 2022 and the full year, displaying substantial profits, with a net profit of 29 billion USD and an EBITDA of 36.8 billion USD. Of interest is the examination of the company's performance parameters in the fourth quarter, as it reveals insights into Maersk's resilience during the current downturn in the industry. In its risk assessment, the company has listed the "Ocean Industry Collapse" as the sole risk factor with high severity.
An analysis of the results reveals a year-over-year decrease in Maersk's volume by 14%, as opposed to a decline of 8.5% in the global market as recorded by CTS. This decline can be attributed to Maersk's significant exposure to the east-west trades, which saw a decline of 19.2% in volume. Furthermore, Maersk has 44% of its volume concentrated in these trades, compared to Hapag-Lloyd, which managed to maintain its global volume despite having 52% of its volume in the Transpacific, Atlantic, and Far East trades.
However, Maersk performed well in terms of freight rates, with a year-over-year decline of only 3.5%, in comparison to a decline of 27% in the global market. This can be attributed to the company's strong position in long-haul trades, with 70% of its volume on contract. In comparison, Hapag-Lloyd recorded a 1.9% year-over-year increase in the fourth quarter. A comparison of the sharp decline in freight rates from the third to the fourth quarter of 2022 reveals that Maersk experienced a decline of 23.3%, compared to a decline of 28% in the market and a decline of 15.5% for Hapag-Lloyd.
In conclusion, Maersk's financial results for the fourth quarter of 2022 and the full year demonstrate its resilience in the face of industry downturns, although the company has lost market share in terms of volume, it has performed well in terms of freight rates.