AP Moller-Maersk has indicated that ocean cargo rates are not only firming up, but will remain robust in the coming year. The Maersk parent is forecasting a record profit of around USD 5 billion in 2010 due to a ramped up demand for capacity.

Revenue for the period increased by 17% to USD 41.4 billion, primarily as a result of higher freight rates for the Group's container shipping activities and higher oil prices. The net result for the period was a profit of USD 4.2 billion.

Mr Nils S Andersen CEO of the group said that "The result is exceptional and we are very satisfied. Markets have been favorable, but first of all, our businesses are in excellent shape. Especially our container business has improved and is ahead of competition on profitability. We are ready to seize opportunities, especially in emerging markets."

The news also supports shippers' contention that rates can be sustained without talking agreements or virtual cartels.

Mr Michael Berzon chairman of the National Industrial Transportation League's said that "We remain adamant and dedicated to reforming the 'Shipping Act. It will be high on our agenda at the upcoming national conference, and we are building support worldwide for this mission."

Meanwhile, the AP Moeller expects a seasonal decline in both volumes and freight rates for the container activities towards the end of the year and consequently a somewhat lower result in the fourth quarter compared to previous quarters.

(Sourced from logisticsmgmt)