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MÆRSK

Maersk summoned by US fair trade authorities

Danish conglomerate A. P. Møller-Mærsk’s shipping arm, Maersk Line, has been issued with a summons by antitrust authorities in the US.

Maersk summoned by US fair trade authorities
File photo: Edgar Su/Scanpix

The company is subject of an investigation into suspected price fixing along with a number of other large container shipping companies, according to a Wall Street Journal report.

The summons were handed out during a raid on a San Francisco meeting attended by 20 bosses of the industry’s biggest companies, says the report.

Maersk is the world’s largest container shipping operator with over 600 vessels.

Maersk Line told industry news agency JOC.com that it had received a summons from American authorities in connection with “an investigation of the global shipping industry,” but said there were no direct accusations against Maersk itself.

“A summons does not mean that the company has acted illegally, neither does it predetermine the outcome of the investigation,” Maersk told JOC, adding that the company would “cooperate fully” with the investigation.

The San Francisco meeting was held by the so-called Box Club and attended by top executives of leading shipping companies. American authorities attend the meetings as standard practice to ensure that activities like price fixing do not take place, reports Danish broadcaster TV2.

BUSINESS

Maersk profits up as global supply chain disrupted

Danish shipping giant, AP Møller-Maersk, said Tuesday that profits were up sixfold in the third quarter as the coronavirus pandemic and global supply chain problems caused container prices to soar. 

Maersk headquarters in Copenhagen. The Danish shipping company posted hefty profits in the third quarter of 2021.
Maersk headquarters in Copenhagen. The Danish shipping company posted hefty profits in the third quarter of 2021. Photo: Niels Christian Vilmann/Ritzau Scanpix

“Maersk delivered record earnings” in the third quarter, chief executive Soren Skou said.

“In the ongoing exceptional market situation, with high demand in the US and global disruptions to the supply chains, we continued to increase capacity and expand our offerings to keep cargo moving for our customers.” 

Maersk said that its bottom-line net profit amounted to $5.438 billion in the period from July to September, compared with $947 million a year earlier.

Underlying, or operating, profit increased nearly fivefold to $5.859 billion and revenues jumped by 67 percent to $16.612 billion.

“Results in Q3 were driven by high freight rates in an exceptional market situation,” the group said.

Looking ahead, Maersk said it is sticking to its full year forecast for operating profit of 18-19 billion dollars. 

However, the ocean shipping division “is now expected to grow below” projected global container demand of between seven and nine percent this year, “subject to high uncertainties related to the current congestion and network disruption,” Maersk said.

“The current trading conditions are still subject to a higher-than-normal uncertainty due to the temporary nature of current demand patterns, disruptions in the supply chains,” it cautioned.

READ ALSO: Danish shipping giant calls for global carbon tax for shipping

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