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


		LNG dual-fuel crude tanker handed over to Capital Jiangsu New Times Shipbuilding delivers the 155,500-DWT LNG dual-fuel crude oil vessel Amor.

		Gasum names Lowina Lundström as vice president, biogas Former EIT InnoEnergy executive joins Gasum's management team to lead biogas business development from 1 December.

		PIL orders seven methanol-ready feeder vessels from Huanghai Shipbuilding Singapore carrier's 1,400-TEU newbuilds will boost intra-Asia capacity and support its 2050 net zero target.

		Singapore and Qingdao sign work plan to advance green and digital shipping corridors MPA and Shandong Port Group’s Qingdao Port have agreed to pursue methanol bunkering pilots and data-sharing initiatives between the two ports.

		Wärtsilä to supply dual-fuel engines and thrusters for Delfin Midstream's FLNG vessel Finnish technology group lands propulsion order for first floating LNG vessel built for US Gulf export project.

		Uni-Fuels advertises for senior bunker trader in Dubai Nasdaq-listed firm recruiting for its trading team as it aims to drive growth.

		Green ammonia bunkered to ammonia-powered bulk carrier in Australian first Pilbara Ports, Fortescue and CMB.Tech complete a ship-to-ship ammonia transfer at Port Hedland, supporting plans for a clean fuel bunkering hub in the region.

		US Coast Guard agrees design framework for hydrogen-fuelled New York ferry Switch Maritime and Incat Crowther reach regulatory agreement for a 150-passenger hydrogen fuel cell-electric fast ferry intended for New York's waterways.

		UECC fits WE Tech hybrid power systems on newbuild ro-ro vessels Norwegian short-sea operator says battery and shaft generator technology from WE Tech Solutions has cut fuel use and auxiliary engine reliance on three newbuilds.

		Envision's green ammonia used to bunker world's first VLAC Chinese energy group supplies vessel owned by Eastern Pacific Shipping as it links production and marine fuel supply chains.