Maersk Gains on Bets Freight Rates to Rise: Copenhagen Mover
A.P. Moeller-Maersk A/S (MAERSKB), owner of the world’s largest container line, snapped a three-day loss in Copenhagen trading on bets customers will accept higher freight prices.
Maersk rose as much as 3.2 percent, making the company today’s second-biggest gainer the Copenhagen 20 index of benchmark stocks. The share advanced 920 kroner, or 2.5 percent, to 37,200 kroner at 12:24 p.m. in the Danish capital.
Maersk Line, the Copenhagen-based container division, today introduced a peak-season surcharge on Asia-Europe routes following an easing of concerns that had prompted a two-week delay. The market is “firm enough” to sustain the increase, Maersk’s North Asia Chief Executive Tim Smith said in an e-mail.
The Shanghai Containerized Freight Index, which jumped 60 percent over the first four months of the year, retreated in May as operators added vessels to take advantage of the better rates. That jeopardized the supply and demand balance operators had created by pooling or idling ships and slowing speeds.
Maersk Line is levying the $350 per twenty-foot container surcharge as retailers stock up for the peak season. The carrier and other lines earlier delayed surcharges as rising capacity and concerns about the European economy damped rates and shipments.
Maersk shares outperformed a 0.8 percent advance in the Stoxx Europe 600 Index today, spurred by speculation central banks may take steps to ease the fallout of Europe’s debt crisis with additional stimulus measures.
-- With assistance from Alexandra Ho in Shanghai. Editors: Frances Schwartzkopff, Tasneem Brogger.
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