Rise in bunker costs hurts Maersk profit

Thu 8 Aug 2024, 12:27 GMT | Updated: Thu 8 Aug 2024, 12:28 GMT

Rise in bunker costs hurts Maersk profit

Shipper blames reroutings via Cape of Good Hope and fuel price increase.

Maersk saw net profit tumble $723m in Q2 as marine fuel expenses climbed $408m. Image credit: Maersk

Maersk reports that bunker costs increased year-on-year (YoY) by $408m in the second quarter (Q2) of 2024.

Fuel expenses in Q2 amounted to $1.85bn — a rise of 28.3% on the $1.44bn posted for the corresponding period in 2023.

Excluding the EU Emissions Trading System (ETS) effect of $28m, Maersk noted that bunker costs had risen by 26%. This was said to be partly due to a YoY growth in fuel consumption of 430,000 tonnes, or 17.7%, to 2.862m tonnes as a result of ship reroutings via the Cape of Good Hope. The second reason being the $44 — or 7.4% — uptick in the average bunker price to $636 per tonne, compared to the previous year's figure of $592.

Chart

Chart: Bunker Index. Data credit: Maersk

Q2 bunker consumption for Maersk, 2020-2024

Bunker consumption in '000 tonnes.

Year	Bunker consumption ('000 tonnes)
2020	2333
2021	2725
2022	2651
2023	2432
2024	2862

Table: Bunker Index. Data credit: Maersk

Q2 average bunker price for Maersk, 2020-2024

Average bunker price in $ per tonne.

Year	Bunker price ($/mt)
2020	328
2021	475
2022	827
2023	592
2024	636

Table: Bunker Index. Data credit: Maersk

In its financial results, the Ocean division's operating earnings (EBITDA) declined YoY by $852m, or 37.7%, to $1.407bn, and profit before financial items (EBIT) fell $735m, or 61.0%, to $470m.

As regards overall group performance, Maersk posted a net underlying profit of $623m — a decrease of $723m, or 53.7%.

In its guidance for the rest of 2024, Maersk said a $100 change in the price of bunker fuel would lead to the group's EBIT varying by $0.2bn.

Maersk


		Bermuda Container Line imposes emergency bunker surcharge citing Iran War fuel price spike Shipping operator to add $150 per TEU charge from 1 May amid geopolitical fuel cost pressures.

		Zhejiang’s first methanol-powered container ship launches in Jiaxing Vessel uses methanol propulsion technology to reduce carbon dioxide emissions by 90%.

		TES joins SEA-LNG coalition to advance e-methane as marine fuel Green energy company targets 1m tonnes annual e-methane production by 2030 for shipping decarbonisation.

		IBIA to host workshop on ethanol and methanol marine fuels during Singapore Maritime Week Half-day event will examine alcohol-based fuel pathways and integration into shipping’s multi-fuel landscape.

		ROC begins construction of second chemical tanker for Essberger Chinese shipbuilder holds steel-cutting ceremony for 13,000-dwt methanol-ready vessel with ice class capability.

		Norsepower and Cosco Shipping Heavy Industry Equipment sign wind propulsion cooperation agreement Wind propulsion technology provider partners with Chinese shipyard to scale rotor sail production.

		Shipping firms struggle to prioritise decarbonisation investments amid regulatory uncertainty, Wärtsilä survey finds Survey of 225 maritime executives reveals 70% say uncertainty hinders investment decisions despite regulatory pressure.

		Longitude Engineering unveils IMT Isca G-Flex PSV design with alternative fuel capability Naval architecture firm launches adaptable platform support vessel design based on the IMT-984 G-Class hull.

		Shore power infrastructure is key to cutting ferry emissions in European cities, says EmissionLink Port electrification is needed to enable vessels to switch off engines at berth, reducing urban pollution.

		Singapore prioritises maritime resilience amid geopolitical uncertainty, eyes digitalisation and green fuels MPA chief outlines the sector’s adaptation to supply chain disruptions while advancing automation and alternative fuels.