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The A.P. Moller - Maersk A/S Group has revealed that the average fuel price paid during the first quarter of 2010 for its container shipping and related activities was 86.9 percent higher than during the corresponding period last year.

According to the Danish shipping group, the average bunker price between January and March 2010 was US$471 per tonne compared to $252 per tonne during the first three months of 2009.

However, whilst the average bunker price surged over the aforementioned 12-month period, A.P. Moller Maersk said its total fuel consumption decreased by 9 percent.

In addition, to mitigate the impact of fluctuating fuel costs, A.P. Moller Maersk said its container shipping activities had focused on the increased implementation of bunker surcharges, which had in turn resulted in improved coverage of fuel costs.

News of A.P. Moller Maersk's fuel costs were revealed in the company's first quarter financial results, which saw revenue for the period increase by 20 percent, primarily as a result of higher oil prices and increasing freight rates and volumes in the group's container activities.

The result for the period was a profit of USD 639 million, compared to a loss of USD 373 million during the same period in 2009.

In the first quarter of 2010, the group’s container vessels transported 1.8 million FFE (Forty Foot Equivalent container units), compared to 1.5 million FFE during the same period in 2009. Growth was seen mainly on the head haul routes and Intra Asia, which increased by 18 percent and 70 percent, respectively.

Average rates in the first quarter were USD 2,863 per FFE, up by 18 percent compared to the same period in 2009 as a result of improved market conditions and higher bunker surcharges.

Outlook

The group’s container shipping and related activities are now expecting a positive result for 2010 based on the improved market conditions for container shipping activities.

However, in a warning concerning the uncertainties that lie ahead, A.P. Moller Maersk added: "The outlook for 2010 is subject to considerable uncertainty, not least due to developments in the USD exchange rate, oil prices and in the global economy, especially in the second half year 2010, where national economic stimulus packages are expected to be discontinued on a number of important markets for the container shipping activities.

"Specific uncertainties relate to development in the container market, including freight rates, transported volumes and the level of vessels taken out of service."