Investor Presentaiton
39
A.P. Moller-Maersk Annual Report 2020
Directors' Report
Performance 2020 Ocean
=1
Volumes were 5.0% lower at 12,634k FFE
(13,296k FFE) due to COVID-19, predominantly
in Q2, mainly due to decreases in East-West and
North-South trades. The decrease in East-West
was driven by Europe and Middle East trades,
while North America saw higher volumes in H2
2020. The decrease in North-South was driven
by the weak demand across Latin America, Africa
and Oceania trades. Total headhaul decreased
by 4.3%, mainly for Latin America, Europe and
Middle East, while total backhaul decreased
by 6.3%.
The average loaded freight rate increased
by 7.9% to 2,000 USD/FFE (1,853 USD/FFE),
driven by an increase of 14.1% on East-West
supported by strong demand, vessel and
equipment shortages and bottlenecks across
the entire supply chain. On North-South the
average freight rates increased by 7.8%, driven
by headhaul increase in Latin America and
Africa combined with higher backhaul rates in
Oceania. The rate increases on East-West and
North-South trades were partly offset by lower
rates on intra-regional trades driven by a 7.0%
decrease in intra-Americas rates. The average
loaded freight rate was positively impacted by
mix effects from relatively higher headhaul
volumes especially in North America and neg-
atively affected by developments in foreign
exchange rate and the bunker price change.
The average loaded freight rate at fixed bunker
increased by 9.8%.
Loaded volumes
FFE ('000)
I
2020
2019
Change
Change %
East-West
North-South
Intra-regional
5,948
6,194
-246
-4.0
3,900
4,268
-368
-8.6
2,786
2,834
-48
-1.7
Total
12,634
13,296
-662
-5.0
Average freight rates
USD/FFE
2020
2019
Change
Change %
East-West
2,008
1,760
248
14.1
North-South
2,529
2,347
182
7.8
Intra-regional
1,345
1,366
-21
-1.5
Total
2,000
1,853
147
7.9
Unit cost at EBIT level (based on a fixed bunker price)
Cost split % EBITDA level
Container handling and equipment cost
Network cost excl. bunker
Bunker
■Non-operational cost
2020
37%
29%
17%
17%
2019
37%
29%
19%
15%
Unit cost fixed at 450 USD/tonne
2,100
2,050
2,000
1,950
1,900
Freight revenue was USD 24.9bn (USD 24.5bn),
while other revenue was flat at USD 4.3bn (USD
4.3bn). Adjusted for the foreign exchange rate
effects, the freight revenue increased by 2.4%.
1,850
1,800
Unit cost at fixed bunker price was 1.0% above
2019, despite a reduction in total operating costs.
Unit cost was driven by lower volumes, offset
partially by improved bunker efficiency and for-
eign exchange rate effects. Compared to 2019,
the unit cost at fixed bunker increased by 1.6%
adjusting for the foreign exchange rate effects.
1,750
2019
2019
2019
2019
2020
2020
2020
2020
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4View entire presentation