What's going on?

Maersk reported better-than-expected quarterly results late last week, with the Danish giant�s cargo ships popping up almost everywhere you look.

What does this mean?

Demand for just about everything has been surging as economies bounce back from the pandemic, but your made-in-China iPhone doesn�t magically fly into your local Apple store: booming demand for goods means booming demand for international transport. That�s caused shipping costs to skyrocket, with one widely watched indicator of freight rates up fourfold in just a year. It�s also caused Maersk to click its heels together with glee: container shipping makes up three-quarters of the company�s revenue, which led the company to report a better-than-expected 60% jump in sales last quarter compared to the same period last year. It was also just what the company needed to raise its 2021 profit forecast by almost 50%.

Why should I care?

For markets: Looks good for the economy.
Maersk also upped its previous forecasts and said it�s now expecting global container demand to grow as much as 8% in 2021, primarily thanks to higher expected export volumes from China to the US. That should help reassure investors who are feeling anxious about the global economy: the firm handles a fifth of containers shipped globally, which makes it a bellwether stock for global trade and broader economic activity. So if Maersk is doing well, it�s a good sign for everyone else.

Zooming in: There are plenty more fish on the land.
Maersk had one other update to share with investors on Friday: the company announced that it had spent around $1 billion buying two parcel shipping companies, and hinted there would be more acquisitions to come. It�s all part of Maersk�s grand plan to diversify away from maritime shipping and expand into land-based deliveries, meaning it can now ship goods from factory to shop floor.