Demand for maritime transport is weakening – this is hitting Maersk’s balance sheet
The golden days for shipping companies as a result of the Corona pandemic are apparently over: Maersk has recorded slumps in turnover and profits for the first quarter of 2023.
The Danish shipping company Maersk has recorded slumps in turnover and profit at the beginning of the new year. Turnover fell by 26 per cent in the first quarter to 14.2 billion dollars (about 12.8 billion euros).
Earnings before interest and taxes (Ebit) shrank by more than two thirds to 2.3 billion dollars, as the company announced in Copenhagen on Thursday.
The background is the normalisation of supply chains on the world’s oceans, which have been disrupted for years, and the decline in demand for maritime transport. “The visibility of how the situation will develop further remains low for the rest of the year,” said Vincent Clerc, CEO of the world’s second-largest container shipping company. He announced plans to counter market normalisation with “proactive cost management”……
Note: “proactive cost management” means layoffs ?
Finally back to normal developments to negotiate with shipping companies.