{"id":1990650,"date":"2023-08-04T08:06:01","date_gmt":"2023-08-04T12:06:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/maersk-warns-of-slower-demand-for-container-shipping\/"},"modified":"2023-08-04T08:09:48","modified_gmt":"2023-08-04T12:09:48","slug":"maersk-warns-of-slower-demand-for-container-shipping","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/maersk-warns-of-slower-demand-for-container-shipping\/","title":{"rendered":"Maersk cautions about reduced container shipping demand."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmaersk-warns-of-slower-demand-for-container-shipping%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1990650&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Jacob Gronholt-Pedersen<\/p>\n<p>COPENHAGEN (Reuters) \u2013     Shipping group A.P. Moller-Maersk warned on Friday of \u200ca steeper decline in global demand for shipping \u2064containers by sea this year, prompted by muted economic growth and customers reducing inventories.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The company, one of the world\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/two-measures-of-corporate-health-flash-red\/\" title=\"Two measures of corporate health flash red\">biggest container shippers<\/a> with a market share of around 17%, said it expects container \u2064volumes to fall by as much as 4%.\u2063 It had previously forecast a decline of no more than 2.5%.<\/p>\n<p>Maersk \u200dtransports \u200dgoods for retailers and consumer companies such as Walmart, Nike and Unilever, and is \u200cseen as a barometer for global economic and corporate health.<\/p>\n<p>CEO \u2064Vincent Clerc said he saw no sign that \u200cthe destocking \u200cwhich\u2063 has curbed global trade activity would end this year.<\/p>\n<p>\u201cWe had expected customers to draw down inventories\u2062 around the middle of\u200d the year, but so far we see no signs\u2063 of \u2062that happening. It may \u2063happen at the beginning of\u2062 next year,\u201d Clerc said at \u2063a media briefing. <\/p>\n<p>\u201cConsequently, the uptick in volumes we had expected in the second half of the year has not occurred,\u201d he said.<\/p>\n<p>He\u2062 predicted that the drawdown of inventories would take\u200c longer in the U.S. than in other regions.<\/p>\n<p>Maersk posted\u2062 record earnings last year due to high freight\u200b rates caused by strong consumer demand and pandemic-related logjams at ports. But freight rates have\u2062 tumbled this year amid a global economic slowdown.<\/p>\n<p>To <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uc-berkeley-spends-25-million-a-year-on-diversity-and-inclusion\/\" title=\"UC Berkeley Spends  Million A Year On \u2018Diversity And Inclusion\u2019\">make things worse<\/a> for the industry, a wave of\u2064 hundreds\u2062 of new container vessels ordered during the pandemic has started to come to market\u200b this year. <\/p>\n<p>\u201cMost of the orders are still in the shipyard,\u2063 so we have a long haul in front\u200c of us,\u201d said Clerc. <\/p>\n<p>The industry has been disciplined in handling the new capacity, which has so far prevented a larger \u200bplunge in \u2062freight rates, he said. <\/p>\n<p>\u201cWhether that will continue, only time will \u200btell,\u201d he said. \u201cWe will need to adapt to the \u200dnew market situation over the next 18 months.\u201d<\/p>\n<p>The company said the number of containers it loaded onto ships between April and June fell by 6% from\u2063 a year earlier, while average freight rates halved.<\/p>\n<p>Maersk on Friday posted a slightly smaller \u2062than expected drop in second-quarter earnings and narrowed its profit forecast for the year.<\/p>\n<p>Earnings before interest, tax, depreciation and\u2063 amortisation (EBITDA) fell to \u2062$2.91 billion in the quarter\u200b from $10.3 billion a year earlier, beating \u2063analysts\u2019 expectations of $2.41 billion in a Refinitiv poll. Revenues fell 40% to\u2064 $13.0 billion.<\/p>\n<p>It now expects underlying EBITDA of between $9.5 \u200bbillion and $11 billion, against previous predictions \u200cof between $8 billion and $11 billion.<\/p>\n<\/p>\n<p>  (Reporting by Jacob Gronholt-Pedersen; editing by \u200cTerje Solsvik, \u200dJacqueline Wong and Jan Harvey)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/maersk-warns-of-slower\/attachment\/signage-is-seen-at-the-maersk-offices-in-copenhagen\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>A.P. Moller-Maersk Warns\u200c of Steeper \u2064Decline in Global Shipping Demand<\/h2>\n<\/p>\n<blockquote>\n<p>Shipping \u200cgroup A.P. Moller-Maersk has issued a warning about a significant drop in global demand for shipping containers by sea this year. The company \u2064attributes this decline to muted economic growth and customers reducing their inventories.\u200b Previously, Maersk had forecasted a decline of no more than 2.5%, but now expects container volumes to fall by as much as 4%.\u200d As one of the world&#8217;s largest container shippers, with a market share of around 17%, \u200cMaersk&#8217;s projections\u2063 serve as a barometer for global economic and corporate health.<\/p>\n<\/blockquote>\n<p><h3>No Signs of Recovery<\/h3>\n<\/p>\n<p>CEO Vincent Clerc expressed concern\u2063 about the ongoing destocking that has hindered global trade activity, stating that there are no\u2064 signs \u2063of it ending this \u200dyear. The company had anticipated customers to \u2064draw down inventories \u200baround the middle of the\u2062 year, but that has\u2063 not\u200c materialized. Clerc believes it may happen at the \u200cbeginning of next year, resulting in the expected\u2062 uptick in\u200b volumes not occurring\u200c in the \u2063second half of \u2063this year. He also predicted \u2064that the drawdown of inventories would take \u2063longer in the U.S. compared to other regions.<\/p>\n<p><h3>Challenges in the\u200d Industry<\/h3>\n<\/p>\n<p>Maersk faced challenges this year as\u2064 freight \u2062rates plummeted due \u200bto a global \u2062economic slowdown. Additionally, the industry has been grappling with the arrival of numerous new container vessels ordered during the pandemic. Most of \u200cthese orders are still \u200din the shipyard,\u200c indicating a long\u200c road ahead for the industry.\u2064 However, the disciplined handling of the new capacity \u200dhas prevented a larger plunge in freight\u200c rates so far. The company acknowledges the need to \u200badapt to \u2064the new market situation over \u200cthe next 18 months.<\/p>\n<p><h3>Financial Impact<\/h3>\n<\/p>\n<p>Maersk reported a smaller than expected drop in second-quarter earnings and revised its profit forecast for\u2064 the\u200b year. Earnings before interest, tax, depreciation, and \u2064amortization (EBITDA) fell to $2.91 billion \u2064in the quarter, beating analysts&#8217; expectations. Revenues \u2063also declined \u200bby 40% to $13.0 billion. The company now expects underlying \u200bEBITDA of between $9.5\u2062 billion and $11 billion for the year.<\/p>\n<p>(Reporting by Jacob Gronholt-Pedersen; editing by Terje Solsvik, Jacqueline Wong, and \u200cJan Harvey)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/maersk-warns-of-slower\/attachment\/signage-is-seen-at-the-maersk-offices-in-copenhagen\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>A new survey finds a plurality of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/maersk-warns-of-slower-demand-for-container-shipping\/\" title=\"Maersk cautions about reduced container shipping demand.\">male high school students describe<\/a> themselves \u200cas Conservative. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The \u200b<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/daily-feed-8-3-23\/\" title=\"Daily Feed 8\/3\/23: Latest news\">45th president pleads<\/a> \u200cnot\u200b guilty in the high-profile Trump arraignment \u2063while Baby Al Capones ravage Chicago.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>45th President\u2064 Donald Trump pleads not\u2063 guilty to all\u200b four felony charges.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Devon \u2062Archer says\u200d he and Hunter Biden flew too \u200cclose to the sun as business partners. With\u200c the transcript from his\u200c closed-door testimony being released \u200dtoday, there is a lot to unpack.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>(Reuters) &#8211; Google-parent Alphabet has cut its stake in trading app Robinhood Markets by nearly 90%, a regulatory filing showed \u2064on Friday. The\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>(Reuters) &#8211; Google-parent Alphabet has cut its stake in trading app \u200bRobinhood Markets by nearly 90%, a regulatory filing showed on Friday. The\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>NEW DELHI (Reuters)\u200c \u2013 India&#8217;s decision to impose a licensing \u200brequirement for imports \u200cof laptops, tablets, and personal computers will boost domestic\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Martin Coulter \u2064LONDON (Reuters) \u2013 Chinese-owned social media platform TikTok has announced a raft of new\u200c features for European users aimed\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Shipping group A.P. Moller-Maersk predicts a sharper drop in global demand for shipping containers by sea in 2020 due to weak economic growth and reduced customer inventories. With a market share of approximately 17%, the company is one of the largest container shippers worldwide.<\/p>\n","protected":false},"author":66,"featured_media":1990651,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1990650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1990650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1990650"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1990650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1990651"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1990650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1990650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1990650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}