Total operating costs was 5.6% lower at USD 6.0bn (USD
6.4bn), driven by lower bunker cost, partly offset by higher
container handling costs as a result of higher volumes
and the bottlenecks in the supply chains due to COVID-19.
Adjusting for the impact of foreign exchange rates, oper-
ating costs decreased by 3.7%.
Bunker costs decreased by 22% to USD 1.1bn (USD 1.4bn),
with a decrease in average bunker price of 28% to 398
USD/tonne (551 USD/tonne) compared to Q1 2020, where
IMO regulations were imposed with requirements on
low-sulphur fuel oil. Bunker consumption increased by
8.3% and bunker efficiency increased by 0.5% to 41.8 g/
TEU*NM (42.0 g/TEU*NM).
Average quarterly prices for high-sulphur fuel oil in Singa-
pore and Rotterdam soared by 25% q/q and 29% q/q from
Q4 2020 to Q1 2021, respectively, averaging USD 377/tonne
(t) and USD 357/t in Q1 2021. Similarly, average quarterly
low-sulphur fuel oil prices increased significantly by 33%
q/q to USD 484/t in Singapore and 33% q/q to USD 453/t
in Rotter dam from Q4 2020 to Q1 2021. Low-sulphur 0.1%
marine gasoil rose by 32% q/q to USD 504/t in Singapore
and 32% q/q to USD 492/t in Rotterdam in Q1 2021 over
Q4 2020.
Unit cost at fixed bunker decreased by 1.9% to 1,988 USD/FFE
(2,026 USD/FFE), driven by lower container costs and other
non-operational costs, partly offset by higher container
handling costs and development in foreign exchange rate.
Adjusting for the negative impact of developments in foreign
exchange rate, unit cost at fixed bunker decreased by 3.0%.
The average nominal capacity of 4,104k TEU decreased by
1.4%. However, deployed capacity was higher in Q1 2021 due
to fewer vessels in dry dock. There were no vessels in the
newbuilding programme end of Q1, and the fleet consisted
of 305 owned and 400 chartered vessels, of which 64k TEU
or 1.6% of the fleet were idle (10 vessels), mainly due to
repairs, scrubbers retrofitting and capacity adjustments.
Key initiatives in Q1
During Q1 2021, Ocean has taken further steps towards
partnering with key customers, offering contract customers
additional flexibility and space to help with the volatility in
their supply chains. Through this the share of business from
contract customers has increased, along with an increase in
contract validity to build further stability and resilience in
customer partnerships, in line with the Ocean strategy.
Twill, the end-to-end digital product designed for small
customers without in-house logistic capabilities, crossed
average 3,758 FFE per week by end of Q1 2021 compared to
average 169 FFE per week same period last year.
As result of increased demand for allocation from contrac-
tual customers, Ocean had to reduce Maersk Spot availability.
To protect the quality of the product, the amount of offers
that could be made was reduced due to the operational envi-
ronment and ability to deliver. Consequently, the adoption
rate of Maersk Spot as a percentage of total short-term
volumes was flat in Q1 2021 at 36% (15%) across all brands
or 52% (25%) if measured on the Maersk brand. Maersk Spot
remains a critical product for freight forwarder customers.
Decarbonisation is a core element of the Ocean integrator
strategy and a strong focus amongst customers. In Q1 2021,
the world’s first carbon-neutral liner vessel was announced
with expected arrival in 2023, seven years ahead of the initial
2030-ambition. All future new buildings will have dual fuel
technology installed.
Logistics & Services
A.P. Moller - Maersk’s capabilities to meet customer’s needs
for Logistics & Services solutions were further strengthened
in Q1 2021 resulting in revenue growth. EBITDA increased to
USD 205m (USD 68m) and EBIT increased to USD 139m (USD
29m), driven by strong performance across all product offer-
ings including Landside Transportation margin improvement,
earnings from Performance Team in North America and
integration of KGH in Europe strengthening the offering of
end-to-end solutions.
Loaded volumes
FFE (’) Q Q Change Change %
East-West
North-South
Intra-regional
Total
Average freight rates
USD/FFE Q Q Change Change %
East-West
North-South
Intra-regional
Total
Fleet overview, end Q1 2021
Q Q
TEU
Own container vessels
Chartered container vessels
Total fleet
Number of vessels
Own container vessels
Chartered container vessels
Total fleet
11 Ocean | Logistics & Services Directors’ ReportA.P. Moller - Maersk Interim Report Q1 | 5 May 2021