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Mon 1 Jan 2007 12:00 AM

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Maersk container business $600m loss

Management at Danish shipping giant Maersk have warned that freight rates (including bunkers adjustment factor) for the first nine months of 2006 were approximately 6% lower than the corresponding period in 2005.

Management at Danish shipping giant Maersk have warned that freight rates (including bunkers adjustment factor) for the first nine months of 2006 were approximately 6% lower than the corresponding period in 2005.

In the second half year the transported volumes are expected to increase by approximately 10% compared to the first half of the year, although it is claimed this is primarily due to seasonal development. In the first nine months of the year, the fuel expenses had been 35% higher per tonne compared to the same period last year.

For the total container business a negative net result for the full year 2006 is expected to be in the order of US$0.6 billion (2005 figures showed a $1.3 billion net profit) after gains on sale of ships and after integration costs related to P&O Nedlloyd. The integration costs in 2006 are now expected to be well below the previously expected amount of $180 million.

For tankers, offshore and other shipping activities the net result for the full year 2006 is expected to be in the order of $1 billion after gains on sale of ships, $400 million up on 2005.

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