Maersk cuts forecast, raises Eu-Asia rates

Global - Maersk has cut 2008 profit forecasts by approximately US$1 billion largely due to massive losses at Danske Bank, in which it has a 20% stake.

Maersk revised its 2008 forecast to a net profit of around US$3.4 billion from the previously announced range of US$4 billion-US$4.3 billion.

"As a consequence of the difficult conditions for the financial sector, the recognised goodwill on shares in Danske Bank is written down to zero. This impairment loss amounts to DKK 1.1 billion corresponding to US$220 million," the company said in a release.

Maersk said it would take an additional US$300 million in impairment losses on non-current assets, as some business units suffer from lower global growth, lower oil prices and declining asset values.

Maersk however, said it will raise Europe-Asia container rates by US$25 per TEU from March 1 and a further US$25 from April 1, due to "unsustainable rates and improved demand", media reports said.

"As a result of increasing costs associated with the growing demand and to ensure sustainable freight rates, Maersk will enact commodity rate increases for export cargo from Europe to Asia. The increase is also necessary to ensure that we can continue to support the trade and provide our customers with the service reliability and customer service they are accustomed to when shipping with Maersk," the company said.

Maersk said Europe-Asia demand is on the up due to the weak sterling and euro, making a turn from the decline the route experienced in the fourth quarter of 2008.