Maersk reports robust Q1 performance amid uncertain Red Sea conditions for 2025 projections.

Danish logistics giant A.P. Moller-Maersk has reported strong financial results for the first quarter of 2025, indicating a 7.8% growth in revenue to USD 13.3 billion and a remarkable surge in EBIT to USD 1.3 billion from the previous year’s USD 177 million. Maersk’s CEO, Vincent Clerc, attributes this growth to operational efficiency and a favorable global economic climate in the early months of the year. Despite these positive developments, Clerc also acknowledges the rising challenges ahead, primarily due to escalating trade tensions globally and increasing uncertainty affecting supply chains across the world.

The Ocean segment of Maersk’s operations performed exceptionally well in the reported quarter, achieving an EBIT of USD 743 million. This success can be attributed to improved rates and steady volumes growth, aided by the efficient launch of the new East-West network in February. This network is progressing as planned, with expectations to further enhance reliability and cost-effectiveness for the company.

In the Logistics & Services division, Maersk improved its EBIT margin to 4.1%, with freight management services experiencing a notable 18% growth compared to the previous year, driven primarily by Project Logistics. The Terminals segment also fared well, showing a boost in return on invested capital (ROIC) to 14.5%, supported by an increase in volume and revenue per move.

For the full year of 2025, Maersk has maintained its guidance, projecting an underlying EBITDA of USD 6-9 billion and EBIT of USD 0-3 billion. However, the company has revised its global container market volume growth outlook, anticipating a range of -1% to 4%, reflecting the increased macroeconomic and geopolitical uncertainties faced globally. Notably, the disruption in the Red Sea is anticipated to persist throughout the year, affecting maritime operations significantly.

Following the recent ceasefire agreement between the U.S. and Yemen’s Houthi militia, concerns have been raised regarding potential freight rate collapses if shipping services resume in the Red Sea. According to data from Xeneta, a possible large-scale reinterpretation of container shipping to the Red Sea and Suez Canal could lead to a 6% decrease in global TEU-mile demand compared to the current routes around the Cape of Good Hope. This development highlights the precarious nature of global shipping and the potential impact of geopolitical events on the industry.