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Maersk's first-quarter profits beat forecasts and outlook remains unchanged

Maersk, the shipping company, posted slightly higher operating profits in its first quarter than analysts had predicted on Thursday. It also kept its earnings guidance for the full year unchanged.

The company's poll of 10 analysts revealed that the median estimate for EBITDA (earnings before interest, tax, depreciation and amortization) was $1.66 billion.

Maersk is often viewed as an indicator of global trade and still projects a global container volume increase between 2% to 4% in this year.

In a press release, Chief Executive Vincent Clerc stated that "we've seen strong demand in most regions in this quarter. This has supported robust volume growth across our three business segments."

The Middle East conflict's impact on global supply chain is not captured in the first quarter, as the conflict began on February 28, when Israel and the United States launched coordinated attacks on Iran.

After Iran closed down the Strait of Hormuz for commercial traffic, the war has disrupted the shipping routes in the region and increased costs like fuel.

The security situation remains fragile. On Wednesday, the French shipping group CMA CGM reported that one of their container ships was struck while transiting through the Strait of Hormuz. This caused injuries to crew members and damage to the vessel.

The Middle -East security situation also impacts shipping in Red Sea. Maersk is forced to reroute ships around Africa and away from the Suez Canal, Bab el Mandeb Strait, etc.

Maersk has abruptly halted its tentative attempts to return some services to the Suez Route, which was seen as a crucial step in resolving years of global trade disruptions caused by Yemeni Houthi rebel attacks on ships at the Red Sea. (Reporting and editing by Terje Solsvik, Stine Jacobsen & Jesus Calero)

(source: Reuters)