A.P. Møller-Maersk's container shipping division Maersk Line has reported that revenue fell during the first quarter (Q1) of the year as the global economic crisis took its toll on demand.
Revenue totalled US$4.9bn (€3.6bn) for the period of 1 January-31 March, down from US$6.8bn (€5bn) in the same period of 2008, with the segment's net result standing at a loss of US$559m (€410.6m) – a significant decline on the previous year's US$80m (€58.8m) profit.
Container volumes were 'considerably below' the previous year, down 14 per cent to 1.3m FFEs, while average freight rates dropped 24 per cent on the same period of 2008 due to a deterioration in market terms and lower compensation for higher fuel costs.
Volumes on trade between Asia and Europe fell 8 per cent year-on-year, the group said, with volumes down 14 per cent on transpacific trade routes, 25 per cent on Latin American services, 21 per cent on transatlantic routes and 17 per cent for African trades.
As a result, the group took 18 vessels out of service at a capacity reduction of around 100,000TEU, or 6 per cent of the total fleet, at the beginning of May.
The results had a major impact on A.P. Møller-Maersk's overall results for the quarter, with revenue down from US$14.4bn (€10.6bn) to US$11bn (€8.1bn) and net result standing at a loss of US$373m (€274bn) from a profit of US$1bn (€734m) in 2008.
