On Tuesday, the world’s biggest shipping company, Denmark’s A.P. Moeller-Maersk, recorded a sharp increase in profits amid solid worldwide demand for goods shipments as the economy jumps back from the COVID-19 pandemic.
The Copenhagen-based company announced that revenue rose almost 68% in the third quarter, to a record-high $16.6 billion, up from $9.9 billion in the same three-month period last year. It recorded profits of $5.5 billion, up from $947 million in the same period the previous year.
“In the ongoing exceptional market situation, with high demand in the U.S. and global disruptions to the supply chains, we continued to increase capacity and expand our offerings to keep cargo moving for our customers,” CEO Soren Skou said.
The essential requirement for more shipping space arrives amidst soaring user demand for everything from cars to furniture and labour deficiencies in the rebounding economy, leading to significant backups at ports and higher prices. The supply chain issues have caused a shortage of necessary equipment: shipping containers.
In a statement, Maersk said its crucial ocean business is now “expected to grow below the global container demand” amidst scepticism around the supply chain logjams.
The company also stated its aim to obtain Senator International, a global freight forwarding company with robust air freight offerings and to increase its air network, Maersk is combining aircraft to its operations: three leased cargo planes to be working from 2022 and two Boeing aircraft to be deployed by 2024.