A.P. Moller- Maersk has posted a solid third quarter, with profitability recovering despite another steep drop in freight rates. The group’s improvement was largely the result of tighter cost control, higher volumes through its new East-West network, and record activity at its terminal division; rather than any rebound in shipping prices.
The Danish logistics giant reported Q3 EBITDA of USD 2.7 billion and EBIT of USD 1.3 billion, down sharply from last year’s peak-cycle levels but higher than in the previous quarter. Revenue reached USD 14.2 billion, compared with USD 15.8 billion a year earlier.
Ocean: more boxes, cheaper miles
In ocean shipping, volumes rose 7 per cent year-on-year while the average loaded freight rate dropped 31 per cent. Maersk said rates were “broadly stable” compared with the second quarter, as the strong levels seen in July faded toward the end of the period. The new Gemini Cooperation, a network partnership designed to streamline east-west routes, helped reduce unit costs and lifted quarterly operating profit to USD 567 million from USD 229 million in Q2.
The report also shows where the company’s savings are coming from. Bunker fuel costs were 13 per cent lower than a year ago, while unit cost per container fell by just under 1 per cent year-on-year. Maersk paid USD 76 million under the EU Emissions Trading Scheme during the quarter, up from USD 55 million last year, confirming that carbon compliance is becoming a notable line in its European accounts.
Terminals carry the load
The group’s terminal business again proved its stabiliser. APM Terminals handled nearly 9 per cent more volume, with utilisation climbing to 89 per cent. Some facilities in Europe and the Americas are now “nearing their full potential,” the company said.
EBIT at the division rose to USD 571 million, with margins of almost 40 per cent, among the highest in the group. Much of that growth came from Maersk’s own container flows, which increased by 26 per cent as the Gemini network channels more cargo through APMT-controlled ports.
Logistics improves through discipline, not demand
In Logistics & Services, profitability improved to 5.5 per cent, driven by cost discipline and stronger results in warehousing and fulfilment. Managed transport volumes declined slightly, reflecting soft demand and lower market rates, especially on trans-Pacific routes. The report describes the division’s progress as one of “stringent cost control” rather than rapid growth.
Guidance lifted at the lower end
Maersk raised the lower end of its full-year guidance, now expecting underlying EBITDA between USD 9.0 and 9.5 billion and EBIT between USD 3.0 and 3.5 billion. The company still assumes the Red Sea disruption will last for the remainder of the year and has revised its forecast for global container market growth to around 4 per cent, up from 2–4 per cent previously.
Chief executive Vincent Clerc said: “Our performance reflects our ability to execute and continuously improve, as well as the trust customers place in us. The new East-West network has strengthened our Ocean performance, delivering industry-leading reliability, higher volumes and lower costs.”
What it means for the market
For shippers and hauliers, the report paints a mixed picture. On the one hand, reliability on Asia-Europe routes has improved and network congestion has eased. On the other, pricing power across ocean freight remains weak, meaning carriers will continue to push efficiency gains and pass through new costs such as ETS surcharges.
Terminals in Europe are operating at tighter capacity — utilisation at APM Terminals Europe rose to 87 per cent — suggesting less flexibility for inland hauliers during peak flows. The rise in demurrage and detention revenue also indicates stricter slot management and higher penalties when schedules slip.
The group’s financial health now depends more on execution than on any cyclical recovery in freight rates. As Maersk itself warns, a USD 100 change in average container rates could swing its EBIT by USD 300 million for the rest of the year. That sensitivity underlines how much of today’s profitability rests on network efficiency and cost savings, not market momentum.
