News / Container rates war drags APMM profits down, but group stays bullish

Nightman1965

AP Møller Maersk (APMM) saw underlying profit drop to $711m in 2016, compared with $3.1bn the year before.

The figures were dragged down by a $376m loss at Maersk Line, which contrasts with the ocean carrier’s $1.3bn positive contribution in 2015.

Maersk Line’s 2016 revenue was 13% lower than in 2015, at $20.7bn, caused by an 18.7% plunge in average freight rates to $898 per teu as the carrier became embroiled in a fierce rate war driven by chronic overcapacity across many tradelanes.

“2016 was ...