A.P. Moller – Maersk reported strong growth in its air freight business during the first quarter of 2026, with India emerging as one of the stronger-performing markets in its terminals network alongside rising cargo demand across Asia. The company said air freight volumes increased by 20 percent year-on-year to 82,000 tonnes, driven by stronger transatlantic charter activity and continued demand for high-value cargo such as AI-related products, semiconductors and electronics.

In India, Maersk reported stronger terminal activity in Mumbai during the quarter, contributing to a 3.4 percent increase in volumes across its Asia terminals business. The company also continued construction of a liquid berth project at Pipavav as part of its infrastructure expansion plans in the country.

Maersk said the rise in air cargo demand was largely supported by exports from Far East Asia and strong imports into Europe and North America. Demand for AI-related products increased significantly during the quarter, especially on trade routes connecting Asia with North America. The company noted that around 100 AI-related product categories recorded a 22 percent increase in demand during January and February 2026.

The company added that international cargo load factors averaged 51.6 percent during the quarter, up 0.8 percentage points from the previous year. Cargo load factor refers to how much cargo capacity on aircraft is being utilised. Air freight utilisation improved further after the outbreak of the Middle East conflict, particularly across Asia-Pacific and Africa trade lanes.

Air freight rates averaged USD 2.1 per kilogram during the quarter, slightly lower than last year. However, rates started rising again towards the end of March following disruptions linked to the Middle East conflict and reached USD 2.4 per kilogram by the end of the month.

The strong performance in air cargo operations helped support Maersk’s Logistics & Services business, which delivered improved results for the eighth consecutive quarter. Revenue in the segment increased by 8.7 percent year-on-year to USD 3.8 billion, while EBIT rose by 22 percent to USD 173 million. The EBIT margin improved from 4.1 percent to 4.6 percent.

Revenue from Transported by Maersk services, which includes air freight activities, increased by 10 percent to USD 1.8 billion. The company said the growth was mainly driven by stronger first mile operations and higher air freight demand. First mile shipping volumes rose by 9.3 percent to 1.76 million FFE during the quarter.

Maersk said profitability in Logistics & Services improved because of stronger performance across warehousing, air freight, middle mile logistics and transportation services, combined with cost discipline and productivity improvements. The company also benefited from improved operating leverage, meaning revenue increased faster than operating costs.

As part of its logistics expansion plans, Maersk opened World Gateway II in Singapore during the quarter. The 1.1 million square foot warehousing facility is aimed at strengthening logistics operations across the Asia-Pacific region. The company also continued investments in warehouse automation projects across several global facilities.

Alongside the growth in logistics and air cargo operations, Maersk reported overall group revenue of USD 13 billion during the first quarter of 2026, slightly lower than USD 13.3 billion in the same period last year. EBITDA stood at USD 1.8 billion, while EBIT reached USD 340 million. The company said lower freight rates in the Ocean business continued to pressure overall earnings despite higher cargo volumes across all segments.

The Ocean business generated revenue of USD 8.2 billion during the quarter. Cargo volumes increased by 9.3 percent to 3.2 million FFE, supported mainly by exports from Asia. However, the average freight rate declined by 14 percent because of continued oversupply of vessels in the global shipping market.

Ocean reported an EBIT loss of USD 192 million compared with a profit of USD 743 million in the same quarter last year. Despite this, vessel utilisation remained high at 96 percent, while operating costs stayed stable because of lower bunker fuel prices and operational efficiencies.

The company said bunker fuel prices fell by 16 percent during the quarter, while fuel consumption also declined despite higher cargo volumes. Maersk attributed this to improved fuel efficiency and network optimisation measures.

The Middle East conflict, including the closure of the Strait of Hormuz, also affected shipping operations during the quarter. Maersk suspended sailings through the Hormuz and Suez regions and restricted bookings in affected areas. Alternative shipping routes and temporary storage solutions were introduced, especially for essential cargo such as food, medicines and perishable products.

The company said these operational adjustments and higher fuel costs are expected to increase expenses in the coming quarters, although it is working to recover some of these costs through commercial measures.

Maersk’s Terminals business also delivered strong growth during the quarter. Revenue increased by 6.7 percent to USD 1.3 billion, while EBIT rose by 11 percent to USD 436 million. Container handling volumes increased by 4.3 percent to 3.47 million moves, supported mainly by strong growth in North America and Asia.

In North America, terminal volumes increased by nearly 11 percent because of stronger activity at terminals in Mexico and the United States. In Asia, volumes were supported by stronger performance in Yokohama, Japan and Mumbai, India.

During the quarter, Maersk continued expansion and infrastructure projects across multiple regions. In Brazil, construction at the Suape terminal entered its final phase, while APM Terminals in Mexico launched the next phase of expansion at Lázaro Cárdenas. The company also announced new partnerships and investments in Vietnam, Saudi Arabia and Germany.

Maersk maintained its full-year 2026 guidance and expects global container market volumes to grow between 2 percent and 4 percent during the year. The company said uncertainty remains because of geopolitical tensions, higher energy prices, vessel oversupply and possible supply chain disruptions linked to the Red Sea and Strait of Hormuz.

The company also continued its sustainability and fleet renewal plans during the quarter. Maersk ordered eight new dual-fuel vessels scheduled for delivery between 2029 and 2030. These vessels will be capable of operating on both conventional fuel and liquefied gas as part of the company’s decarbonisation strategy.