Maersk’s surprising strategy amid falling freight rates

Core Insights - Maersk upgraded its full-year earnings guidance despite a decline in profits due to weaker freight rates [1][2] - The company reported third-quarter revenue of $14.2 billion, down from $15.8 billion year-over-year, with EBITDA at $2.7 billion compared to $4.8 billion previously [1][4] Financial Performance - The revised EBITDA forecast for the full year is now $9.0-$9.5 billion, up from the previous $8.0-$9.5 billion, while EBIT is expected to be $3.0-$3.5 billion, an increase from $2.0-$3.5 billion [2] - Maersk's EBITDA margin decreased to 19.5% from 36% year-over-year, and EBIT margin fell to 6.2% from 25.5% [4] Operational Highlights - The company experienced a 7% growth in overall container volume, surpassing the market-wide increase of 3.7%, with the strongest improvement in east-west trades at 9.6% [3] - Maersk's terminals achieved record performance with strong volume growth, and logistics & services continued to enhance profitability [3] Market Conditions - Ocean freight rates fell by 30.7%, compared to an industry-wide decline of 24.9%, attributed to higher tariffs and economic uncertainty [4]