MAERSK stated that an excess of container shipping capacity in the previous year led to price declines following a surge in 2022, reports Agence France-Presse.
This surge was attributed to capacity shortages amid heightened demand following the easing of Covid crisis restrictions.
'The high demand eventually started to normalise as congestions eased, and consumer demand declined, leading to an inventory overhang,' said Maersk.
This 'correction' led to rapid and steep declines in shipped volumes and rates starting from the end of the third quarter of 2022, according to the Danish group.
maersk reported a net profit of US$3.8 billion for the past year, slightly exceeding analysts' forecasts but significantly lower than the $29.2 billion recorded in 2022.
Similarly, its revenue surpassed expectations, reaching $51 billion compared to $81.5 billion the previous year.
The challenges of oversupply in the maritime shipping industry are expected to fully materialise throughout 2024.
Consequently, the group has revised its forecast for core profit (earnings before interest, tax, depreciation, and amortisation) for 2024 to a range of $1 billion to $6 billion.
SeaNews Turkey
This surge was attributed to capacity shortages amid heightened demand following the easing of Covid crisis restrictions.
'The high demand eventually started to normalise as congestions eased, and consumer demand declined, leading to an inventory overhang,' said Maersk.
This 'correction' led to rapid and steep declines in shipped volumes and rates starting from the end of the third quarter of 2022, according to the Danish group.
maersk reported a net profit of US$3.8 billion for the past year, slightly exceeding analysts' forecasts but significantly lower than the $29.2 billion recorded in 2022.
Similarly, its revenue surpassed expectations, reaching $51 billion compared to $81.5 billion the previous year.
The challenges of oversupply in the maritime shipping industry are expected to fully materialise throughout 2024.
Consequently, the group has revised its forecast for core profit (earnings before interest, tax, depreciation, and amortisation) for 2024 to a range of $1 billion to $6 billion.
SeaNews Turkey