A.P. Moller–Maersk (Maersk) has reported signs of further port congestion, especially in Asia and the Middle East, and an additional increase in container freight rates.

This comes on the back of continued strong market demand and the disruption caused by the ongoing crisis in the Red Sea, according to Maersk.

This development is gradually building up and is expected to contribute to a stronger financial performance in the second half of 2024.

Based on this development, Maersk has upgraded its 2024 full-year guidance and now expects an underlying EBITDA of $7 to $9 billion and EBIT of $1 to $3 billion (previously $4 to $6 billion and $-2 to $0 billion, respectively), and free cash flow of at least $1 billion (previously at least $-2 billion).

“In the past month, the container transport market has entered a new phase driven by the disruptions from the ongoing crisis in the Red Sea and the ripple effects on global supply chains,” said Vincent Clerc, CEO of Maersk.

“While demand for container transport remains strong, supply has been negatively impacted by missed sailings, longer routes, equipment shortages, and delays leading to increased congestion across several key ports in Asia and the Middle East.

“This demand and supply imbalance has had an immediate and profound impact on freight rates. After a stable first quarter, price increases gained momentum during April and May across many regions.

“The ongoing threats to commercial vessels in the Red Sea and growing supply chain bottlenecks indicate that this situation won’t improve soon. More capacity than expected will be needed to resolve these issues and stabilize the global supply chain.

“This has led us to reassess the outlook for the remainder of the year and upgrade our financial guidance.”