Global Container Operator Maersk Sees Full-Year Profits at Lower End; Is to Cut 10,000 Jobs

3rd November 2023

Danish container shipping and logistics giant AP Moller-Maersk reported steep losses which is to led to major job losses totalling 10,000 personnel. Above, as previously reported on Afloat, is the operator’s new methanol-enabled container vessel, Laura Mærsk, which has since been listed on TIME's Best Inventions of 2023. Credit: Maersk/facebook

Danish shipping group AP Moller-Maersk has reported a steep drop in profit and revenue in the third-quarter of this year.

The giant operator which has a fleet of more than 700 vessels among them Laura Maersk, has said it would cut 10,000 jobs as it battles with lower freight rates and subdued demand for container shipping.

The Copenhagen based group has kept its full-year guidance for revenue and operating profit but now expects both to land at the lower end of the range.

"Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base," CEO Vincent Clerc said in a statement.

"Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling," he said.

The group which has 65 terminals across 36 countries, had already in August warned of a steeper decline in global demand for shipping containers by sea this year. The reason cited was due to slow economic growth and destocking in the aftermath of the Covid-19 pandemic.

RTE News has more.

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Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals.

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