---

Maersk Line reports that its underlying profit during the first quarter of 2016 declined by 95 percent to $32 million, down from $710 million during the corresponding period last year. Reported profit also fell by 95 percent to $37 million.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was $486 million - 60 percent lower than the $1,202 million recorded last year.

Revenue of $4.974 billion was 20 percent lower than the $6.254 million achieved in the first three months of 2015. This was driven by a 26 percent decline in average freight rates to 1,857 $/FFE (from 2,493 $/FFE), which was only partially offset by a 7.0 percent increase in volumes to 2,361k FFE (from 2,207k FFE). The freight rate decline was attributed to lower bunker prices and deteriorating market conditions.

Container freight rates declined across all trades, especially Maersk Line's key trades to/from Europe as well as Latin America and North America. Recognised freight revenue was $4.5 billion ($5.6 billion) and other revenue was $514 million ($627 million).

Bunker costs

The average bunker price paid by Maersk Line - the world's biggest bunker buyer as a ship owner/operator - during the first quarter of 2016 was $178 per tonne. The figure was down $180, or 50 percent, on the $358-per-tonne price recorded during the same period in 2015.

Maersk Line's average bunker price during the whole of 2015 was $315 per tonne.

Bunker efficiency improved by 1.8 percent to 957 kg/FFE, down from 974 kg/FFE, Maersk said.