Economic recovery reflects in line’s improving revenue

It’s been a good news week for the shipping industry, which appears to be reaping the rewards of the global economic recovery. The AP Moller-Maersk Group reported an increase of 20% in first half revenue, primarily as a result of higher freight rates and volumes for the Group’s container shipping activities as well as higher oil prices. The Group has posted a profit of US$ 2.5 billion compared to a loss of US$ 0.5 billion in the same period in 2009. “The first half of 2010 has been very satisfactory for the Group, and we expect a full year profit in excess of US$ 4 billion,” Group CEO Nils S Andersen said. “The container market has improved beyond our expectations, and our own efforts to improve competitiveness are paying off. However, we still view the development in the global economy as uncertain, and this may affect us from the last quarter of 2010,” he said. For the second half of the year, the Group’s container shipping and related activities are expected to post a positive result at the level of that in the first half of 2010 – but there is uncertainty especially for the fourth quarter. Deutsche Afrika Linien chairman Eberhart von Rantzau meanwhile described the first half growth in volumes and freight rates as “similar to the boom times before the crisis. “Although the SA trade was not as badly affected by the crisis as elsewhere, the recent upturn in cargo volumes fills us with optimism,” he said.