Posted on February 8, 2023
Maersk warned on Wednesday (8th) that the decline in container traffic and freight rates will cause the company’s profits to plummet fourfold this year.
[Financial Channel/Comprehensive Report] The shipping group AP Moller-Maersk (AP Moller-Maersk) warned on Wednesday (8th) that although the company announced record earnings in 2022, the decline in container traffic and freight rates will lead to a four-fold drop in profits this year. .
Maersk, which transports goods for retailers and consumer goods companies including Walmart, Nike and Unilever, raised its profit forecast twice last year as surging consumer demand and pandemic-related port congestion pushed up freight rates.
But freight rates have since fallen sharply amid recession in the U.S. and other major consuming countries and an import bubble triggered by the pandemic.
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This year, Maersk expects global demand for seaborne containers to fall by 2.5% as inventories build.
The company expects earnings before interest, taxes, depreciation and amortization (EBITDA) of $800 million to $11 billion in 2023, compared with $36.8 billion last year, below the $11.9 billion forecast by analysts in a company survey.
Maersk shares fell 5 percent in early trade.
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