It expects underlying earnings before interest, tax, depreciation and amortization (EBITDA) at around $24 billion this year, similar to last year, but slightly below the $24.4 billion expected by analysts in a poll gathered by the company.

Its shares were down around 2% in early trading and have fallen 11% since reaching an all-time high in mid-January.

While Maersk’s customers faced “severe challenges”, the record-high rates caused by pandemic-related congestion at ports, container shortages, and a surge in consumer demand led to “record-high growth and profitability in Maersk,” Chief Executive Soren Skou said in a statement.

He said the current market situation was expected to persist into the second quarter before easing later in the year.

Maersk, which handles about one in five containers shipped worldwide, increased dividend payout to shareholders to a total of 47 billion Danish crowns ($7.20 billion), or 2,500 crowns per share, compared to 330 crowns per share a year earlier.

The company reiterated preliminary fourth-quarter results published on Jan. 14, when the company said a fall in ocean-going container volumes by 4% was more than offset by freight rates improving 80% compared with a year earlier.

Maersk said last month that it had been overtaken by Swiss-based container group MSC as the world’s biggest shipper.

Also on Wednesday, Danish logistics company DSV predicted the continued supply chain disruption would lift its profits this year.

Source: www.marinelink.com

Image: www.pexels.com

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The group’s latest figures show that air cargo demand in cargo tonne km (CTK) terms in November increased by 3.7% compared with 2019 levels (used to mitigate the impact of Covid).

IATA said that this growth percentage was “significantly lower” than the 8.2% registered in October and the 6.7% increase over the first 11 months of the year.

“Supply chain disruptions and capacity constraints impacted demand, despite economic conditions remaining favorable for the sector,” the association said.

IATA highlighted labour shortages due to employees being in quarantine, insufficient storage space at some airports and processing backlogs exacerbated by the year-end rush.

Meanwhile, demand indicators remain positive, with retail sales in the US and China strong, trade and industrial production figures continuing to beat 2019 levels and inventory levels low.

IATA added that a surge in Covid cases was driving PPE demand.

Cargo load factors for the month stood at 55.9% – a 6.1 percentage point increase on 2019 – as capacity was down by 7.6% on two years earlier.

IATA director general Willie Walsh said: “Air cargo growth was halved in November compared to October because of supply chain disruptions.

“All economic indicators pointed towards continued strong demand, but the pressures of labour shortages and constraints across the logistics system unexpectedly resulted in lost growth opportunities.

“Manufacturers, for example, were unable to get vital goods to where they were needed, including PPE.

“Governments must act quickly to relieve pressure on global supply chains before it permanently dents the shape of the economic recovery from Covid-19.”

IATA is calling on governments to: ensure that air crew operations are not hindered by Covid-19 restrictions designed for air travellers; implement the commitments governments made at the ICAO High Level Conference on Covid-19 to restore international connectivity; and provide innovative policy incentives to address labour shortages where they exist.

Looking at regional performance, Asia Pacific airlines saw cargo increase by 1.1% in November compared with two years earlier.

North American carriers’ demand was up 13.3%, although this was down on 20.3% in October, as congestion at hubs affected growth.

European carriers registered a 0.3% increase in demand due to supply chain congestion and localised capacity constraints.

Middle East-based airlines saw cargo demand increase by 3.4%, although this was also a “significant drop” on previous months performance.

In Latin America, carriers saw demand drop by 12.8% on 2019, also a deterioration compared with October. Finally, African airlines noted a 0.1% decline, another drop on October.

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Speaking exclusively to Air Cargo News, Hung said the shortage is worst on the transpacific trade and is the result of the knock-on effects of general supply chain disruption causing hold ups in transport operations.

“Airlines are finding it’s taking much longer for assets to be delivered back to US warehouses after collection by the consignee,” Hung said.

“Backlogs in warehouse operations for both airlines and freight forwarders, combined with transportation issues such as driver shortages and capacity constraints, are also impacting the availability of ULD pallets and containers.”

Hung added that ULD manufacturers are backlogged and despite running at maximum capacity they can’t fulfil the current demand.

Lead times for delivery of new ULDs is at least four to six months.

“Exacerbating the shortage, freight forwarders are running out of warehouse space and keeping ULDs as supplementary storage outside of their warehouses,” Hung added.

“Airlines are trying to combat the challenges by leasing more units, offering incentives for faster turnarounds in the US and expediting repairs.”

Airlines are also struggling to have enough pallets on hand due to delays in their return from customers.

“It’s also difficult for airlines to secure pallets from ULD leasing companies, even though many are willing to pay a premium for pallets,” added Hung.

“The shortage of pallets is going to continue to delay shipments, which will have an impact on the entire supply chain.”

Asked how long the shortage could last, Hung said it was very “extremely difficult” to predict given the uncertainty regarding future lockdowns – especially given the Omicron variant – and the impact that could have on air cargo.

Hung recommended that airlines utilise tracking technology and software, such as that offered by Descartes, to monitor ULDs and automate the demurrage process.

“[Tracking technology] helps carriers optimize the use of the ULD assets they do have by changing the behaviour of agents so they return ULDs on time.

“This provides visibility into the exact location of ULD assets and whose custody they are in at any time, and traces ULD movements easily to clarify any discrepancies.

“Technology also drives better forecasting and planning so airlines can identify ULD shortages before they occur and take proactive action as necessary, such as leasing or purchasing new assets.”

Descartes is not the only company to have noted a shortage of ULDs over recent weeks.

In November, Cathay Pacific director of cargo Tom Owen also noted a shortage of ULDs on the transpacific.

“Backlogs in both our and consignee warehouses, along with shortages of trucks and labour issues, are combining to make this very challenging,” he said.

Source: www.aircargonews.net

Image: www.pexels.lv

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