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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.

A Maersk vessel, pictured from above.
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: Bunker Index. Data credit: Maersk

Q2 bunker consumption for Maersk, 2020-2024

Bunker consumption in '000 tonnes.

YearBunker consumption ('000 tonnes)
20202333
20212725
20222651
20232432
20242862

Table: Bunker Index. Data credit: Maersk

Q2 average bunker price for Maersk, 2020-2024

Average bunker price in $ per tonne.

YearBunker price ($/mt)
2020328
2021475
2022827
2023592
2024636

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.
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