The world’s largest container shipping line, Maersk, saw profits spike during second quarter pandemic lockdowns as declining volumes were offset by higher freight rates and reduced operating costs.

Parent company A.P. Moller-Maersk (APMM), writes LloydsLoadingList, reported improved profitability across all businesses during Q2. APMM attributed its success to “agile capacity deployment, cost mitigation initiatives and adaption to changed customer needs, with higher ocean freight rates and lower fuel costs helping mitigate the decline in ocean volumes.

Maersk reported that East-West volumes fell 14.9% year-on-year in the second quarter but this was offset by average freight rates on the services rising 8.2%. And, while loaded volumes on North-South services dropped 18.6% in the period, average freight rates increased 5.2%.

Total ocean operating costs decreased by 16% to $5.2 billion in Q2, driven by lower network costs including bunker and time charter costs, reported APMM, with “active capacity management in response to the lower global demand partly offsetting the impact of lower volumes”.

Overall group revenue decreased by 6.5% year-on-year in Q2 to $9.6 billion, mainly driven by a volume decrease of 16% in ocean loadings and a 14% drop in handling at its gateway terminals.

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