AFTER a street-beating profitable first quarter, analysts say that AP Moller-Maersk will likely to cut its full-year outlook because of a 41 per cent fall in freight rates since April, Reuters reports.
Maersk profit warning feared as analysts doubt rate hikes will stick AFTER a street-beating profitable first quarter, analysts say that AP Moller-Maersk will likely to cut its full-year outlook because of a 41 per cent fall in freight rates since April, Reuters reports.
According to the Shanghai Shipping Exchange, Asia-Europe rates have fallen from US$1,140 per TEU to $668 in less than two months.
Maersk Line has insisted that will more than double that rate from on its main Asia-Europe route, but analysts doubt customers will pay.
"If they do not succeed we are expecting a downgrade of the full-year outlook in connection with the second-quarter earnings report," said Denmark's Alm [asset and liability management] Brand Markets equity analyst Jesper Christensen said.
Maersk Line, whose vessels make up 15 per cent of world container shipping capacity, is to report second-quarter earnings in August.
The company was not immediately available to comment on whether it would lower its guidance.
"If current rates stay on this level for the rest of this year, there is no doubt they will have trouble reaching the full-year guidance," said Nykredit Markets equity analyst Ricky Rasmussen.
