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Jyske Bank slashes Maersk Line estimate for this year

Jyske Bank slices a big chunk off of its estimate for Maersk Line's operating result this year. Rate increases will come too late in relation to the increase in fuel prices, according to the bank.

Photo: PR-foto/Maersk Line

The most recent increases in container rates are too small and will arrive too late in relation to the development in bunker prices, notes Jyske Bank, which has reduced its estimate for Maersk Line's operating result (EBITDA) in 2016 to USD 1.2 billion down from previously USD 1.9 billion.

"The decreased distance between rates and bunker in the second quarter 2016 reflect a weakened discipline and major challenges during a period with oversupply and weak demand as the higher bunker prices crash into the rates," writes share analyst Frans Høyer from Jyske Bank in a comment.

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