Maersk, the world’s largest container shipping firm, has posted a 200% increase in its second-quarter earnings as congestion and bottlenecks continue to drive up global shipping rates.
The company reported earnings before interest, tax, depreciation and amortization (EBITDA) of $5.1 billion U.S., a 200% increase from the $1.7 billion U.S. reported in the same period last year. Maersk’s revenues were up 60% to $14.2 billion U.S. in the quarter.
Container shipping rates have skyrocketed as the global economy bounced back from the pandemic and commodity demand recovered, while a shortage of containers exerted pressure on supply chains.
A combination of rising retailer orders and slower turnaround rates due to COVID-19 outbreaks in several countries has driven prices even higher in recent months.
Rates from China to the U.S., for example, have reached record highs above $20,000 U.S. per 40-foot container box, up more than 500% from a year ago.
Maersk’s return on invested capital now sits at 23.7% for the past 12 months, and the firm’s earnings and cash flow will enable it to make targeted acquisitions while returning cash to shareholders, the company said in a news release.
The Danish shipping giant also announced the acquisition of parcel shipping companies Visible Supply Chain Management and B2C Europe, part of its plan to grow its e-commerce business.
Maersk has also upgraded its 2021 forward guidance to an underlying EBITDA of between $18 billion U.S. and $19.5 billion U.S., with a projected free cash flow of at least $11.5 billion U.S.