In the second quarter of 2021, AP Moller - Maersk continued to deliver strong growth and profitability, with record-breaking performance marking the 12th quarter of successive year-on-year earnings progress.
Revenue grew 58 pct. to US$14.2 bn in Q2 and EBIT increased almost five times to US$4.1 bn. The net result came in at US$3.7 bn in the second quarter, bringing the net result for the first half of 2021 to US$6.5 bn. Return on invested capital (ROIC) is now at 23.7 pct. for the past 12 months.
“The strong results benefited both from the exceptional circumstances in Ocean, where congestions and bottlenecks continued to drive up rates, and from solid progress in executing on our strategic transformation where we kept a firm focus on our customers need for integrated solutions across their supply chains. I am pleased with the strategic progress we have made and the high value generation. We continue to build a higher quality Ocean business with more long-term contracts, a rapidly growing logistics business, and a value creating terminals business. Our exceptional earnings and high cash flow enable us to further accelerate our transformation, invest in growing our activities, also through acquisitions and at the same time return cash to shareholders. To that effect we also announced today the acquisitions of Visible SCM and B2C Europe which complements our existing supply chain offering and addresses our customers need for E-commerce logistics,” said Søren Skou of CEO AP Moller - Maersk.
In Ocean, profitability in Q2 was driven by revenue growth to US$11.1 bn from US$6.6bn and EBIT increased to US$3.6bn from US$0.5 bn. The growth came from a 15 pct. rebound in volumes and an increase in average freight rates of 59 pct., as both long-terms contracts rates with key clients increased and short-term contracts were still impacted by congestions and bottlenecks.
Logistics and Services delivered 38 pct. revenue growth to US$2.2 bn in Q2 with more than half coming from the top Ocean customers. Demand was strong across all product families and consequently EBIT more than tripled to US$153 mn compared to US$42 mn in the same quarter last year, leading to an EBIT margin of 7.1 pct.
Also, Gateway Terminals had a strong Q2 with volumes rebounding 24 pct. and persisting high storage income. Revenue increased to US$969 mn from US$723 mn last year, while EBIT doubled to US$302 mn leading to an EBIT margin of 31.1 pct.
Guidance for 2021
“The outlook for Q3 is strong and we expect that the current momentum in Ocean will continue into Q4, also benefitting our Terminals business. Logistics & Services will continue its strong growth pattern for the rest of the year. As communicated on 2 August, we have upgraded our guidance for 2021 to an underlying EBITDA of US$18-19.5 bn, an EBIT of 14-15.5 bn and a free cash flow expected to be minimum US$ 11.5 bn,“ Skou said.
Ocean is still expected to grow in line with global container demand, which is now expected to grow 6-8 pct. in 2021 (previously 5-7 pct. in 2021), still primarily driven by the export volumes out of China to the USA.
For 2021-2022, the expectation for the accumulated CAPEX remains to be around USD 7bn.
Earnings in Q3 are expected to exceed the level for Q2 2021. Trading conditions for the quarters ahead are, however, still subject to a higher-than-normal volatility due to the temporary nature of current demand patterns, disruptions in the supply chains and equipment shortages.
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
Delmos Aviation has transported the second lot of 300 units of oxygen concentrators from Russia to New Delhi for the Rajasthan state government. The consignment was airborne on an Aeroflot A333 aircraft (SU 232) and reached at 10:10 AM in New Delhi. The shipments were shipped by road and sent back to Swasthya Bhawan, Jaipur, Rajasthan Medical Services Corporation (RMSCL). RMSCL obtained oxygen concentrators from Russian companies together with Delmos Aviation. Delmos Aviation is procuring, transporting and supplying COVID-relied materials to the Rajasthan Medical Services Corporation with the mandate signed with the Rajasthan Government. There will shortly be two consignments with the remaining 800 oxygen concentrators. "We are ready to assist governments in the provision and delivery of any type of essential medical supplies, oxygen concentration and equipment as quickly as possible," said Dr Naveen Rao, Director, Delmos Aviation. "At this juncture, time-based deliveries are paramount. We can handle the airlift and deliver the shipment to the last point." In four lots, 100, 300, 450 and 400 units, a total of 1250 oxygen concentrations are ordered and continue to reach New Delhi in batches of shipments. On 14 and 16 May 2021, the remaining lots will arrive. Oxygen concentrators of Single flowmeter (0.5-10LPM Adjustable) and double flowmeter (0-5LPM Adjustable) are included in the delivery. The models are JAY-10A & LFY-I-5A. "The government of Rajasthan is working hard in this raging second wave of the pandemic to provide basic medical equipment to head Minister Ashok Gehlot and Minister of Health, Raghu Sharma. The government plans to import 1250 oxygen concentrators from Moscow, Russia, in partnership with Delmos Aviation, as part of its efforts to enhance medical oxygen in the state," said a spokesperson.
Omnichannel lifestyle brand The Souled Store has partnered with third-party logistics firm Emiza to manage its primary warehouse operations in Mumbai. The collaboration positions Emiza’s Mumbai warehouse as a central hub, managing orders from The Souled Store’s website, marketplaces, and offline stores across India. “This partnership marks a significant milestone in The Souled Store’s journey, enabling the brand to streamline operations and refocus on growth by partnering with Emiza as a trusted 3PL provider,” the company said. The strategic collaboration goes beyond standard logistics, providing services such as inventory management and order processing. The Souled Store has reduced its order processing time from 24 hours to just 12 hours, significantly enhancing customer satisfaction, a key factor in the competitive D2C market. Ajay Rao, Founder of Emiza, highlighted the value of the partnership, stating, “Their trust in our services underscores the value we bring, not just in warehousing and fulfilment, but in enhancing overall customer satisfaction. As India’s fashion e-commerce market is projected to reach USD 112 billion by 2030, our role is to provide the infrastructure and fulfilment expertise necessary for brands to thrive.” Aditya Sharma, Co-founder of The Souled Store, noted the impact of the partnership: “Emiza stepped in, providing exceptional warehousing and fulfilment services aligned with our commitment to delivering quality products. Their focus on optimising our fulfilment process has allowed us to cut order processing time by half, ensuring that our customers receive their orders faster.” With 27 fulfilment centres across 14 cities, Emiza is well-positioned to support The Souled Store’s expansion beyond metro cities, tapping into the growing consumer base in Bharat, the company added.
A significant milestone has been achieved in the Indo-Bangla railway project with the inauguration of the inaugural freight train connecting Bangladesh's Gangasagar to Tripura's Nischintanpur. This momentous event marks a significant step forward in strengthening the rail connectivity between the two neighboring countries. The new railway connection is set to enhance trade and commerce between India and Bangladesh, providing a more efficient and cost-effective mode of transportation for goods. It will not only boost bilateral trade but also promote economic development in the region by opening up new opportunities for businesses and industries. The Indo-Bangla railway project is part of a broader effort to improve connectivity and foster closer ties between the two nations. It is expected to play a vital role in facilitating the movement of goods and passengers, ultimately contributing to the economic growth and prosperity of both countries.
The Indian government’s ambitious push to boost the domestic shipbuilding industry, announced in the Union Budget, is already drawing international interest, with South Korea stepping forward to collaborate on key initiatives. The Korea Marine Equipment Association (KOMEA), a Seoul-based non-profit under South Korea’s Ministry of Industry, Trade and Energy, has offered its support to Indian shipyards for joint vessel design and construction, modernisation of shipyard production facilities, and technology transfer to enhance manufacturing processes, according to multiple sources. KOMEA, which represents major Korean shipbuilding and ship repair enterprises—including HD Hyundai Heavy Industries, Hanwa Ocean (formerly Daewoo Shipbuilding and Marine Engineering), and Samsung Heavy Industries—has formally pledged to provide highly qualified specialists for on-site education and training. The association also aims to develop joint educational programs, supply industrial equipment for modernising Indian shipyards, facilitate technology transfer, and support the localisation of marine equipment and spare parts. Founded in 1980, KOMEA has been instrumental in promoting South Korean marine equipment manufacturers globally and currently has a membership base of 304 entities involved in shipbuilding, design, and repair. The association operates in eight countries, including China, Japan, Singapore, the United States, Greece, Saudi Arabia, Brazil, and Russia. With plans to expand its footprint in India, KOMEA sees the country as a strategic partner in advancing shipbuilding capabilities under a bilateral cooperation framework. “Building strong cooperative relationships between South Korean entities and Indian shipyards could significantly contribute to the growth of the shipbuilding industry in both nations,” a KOMEA official stated. “With over four decades of experience, KOMEA and its members can provide effective solutions to challenges in the shipbuilding sector within a short timeframe.” The Union Budget, presented by Finance Minister Nirmala Sitharaman, earmarked ₹25,000 crore for the Maritime Development Fund (MDF) and introduced a revamped shipbuilding financial assistance policy to counter cost disadvantages. Additional measures include credit incentives for shipbreaking at Indian yards to promote a circular economy and granting infrastructure status to large ships above a specified size. The government also announced plans to develop shipbuilding clusters with enhanced infrastructure, skilling initiatives, and technological advancements to strengthen the industry’s ecosystem. A significant boost for shipbuilders came with the extension of the exemption from Basic Customs Duty (BCD) on raw materials, components, consumables, and parts used in ship manufacturing. This exemption, originally set to expire, will now be extended for another ten years from April 1, 2025. Ahead of the budget announcement, high-level delegations from the Ministry of Ports, Shipping, and Waterways, along with representatives from the private shipbuilding sector, visited leading shipyards in South Korea and Japan. These visits were aimed at forging partnerships and leveraging global expertise to strengthen India’s shipbuilding industry. With South Korea now expressing formal interest in collaboration, the stage is set for India to accelerate its shipbuilding ambitions and emerge as a formidable player in the global maritime sector. Source: ET Infra
Arkas Line is expanding its international service network as part of its 2025 growth strategy. Building on its recent Red Sea expansion, the company is launching the "India Med Service (IMS)," its first direct route connecting India to the Mediterranean. From February 10, 2025, the IMS will send four vessels with a capacity of 2,500-2,800 TEU. By June 2025, the service will run weekly with five vessels. The route will cover major ports, such as Ambarli, Nhava Sheva, Mundra, and Alexandria. Customers will also benefit from rail connectivity at India's Mundra and Nhava Sheva ports to transport cargo to inland trade centers. Furthermore, Arkas Line is restructuring its Mediterranean operations by integrating its current GPS, EMS, and SEM routes into a streamlined "Blue Med Service (BMS)." This integrated service will improve efficiency in its Mediterranean network while increasing the company's coverage to 72 ports in 27 countries through 33 service routes. About its commitment to further global growth, Arkas Line CEO Can Atalay said, "With the launch of IMS and the strengthened BMS, we are firmly committed to offering efficient solutions that cater to evolving customer needs and consolidate our presence in key markets.
The Vizhinjam International Port was formally inaugurated after a successful five-month trial period with great fanfare and celebration last week for full-fledged commercial operation. This port's first phase has been completed due to effective team effort among Vizhinjam International Seaport Ltd, Adani Vizhinjam Port Private Ltd, and agencies like IIT Madras. All agreed procedures have been finalised and the work may begin operations. "Wednesday, an independent engineer is going to issue a provisional completion certificate for the first phase of construction after examining it," said the Minister. The remaining minor work could be done in three months without hindering the continued operations. The formal commissioning was carried out as per the supplementary concession agreement signed recently between the state government and Adani Ports. In its trial run, the port performed remarkably well by successfully handling 70 cargo ships, including ultra-large mother ships, and handling a total of 147,000 containers. By averaging one vessel every alternate day, the port confirmed its readiness to emerge as a major player in the handling of export-import (exim) containers. Vasavan underscored that "the port's operations will transform Kerala's international trade and drive substantive economic growth for the state."
