FILE PHOTO. Maersk Eleanor at APM Terminals Los Angeles at the Port of Los Angeles. Photo: APM Terminals
COPENHAGEN, Oct 13 (Reuters) – The world’s biggest container shipping line, Maersk, said on Tuesday demand was recovering faster than expected and lifted its earnings outlook, while also announcing plans to cut 2,000 jobs as it streamlines to cut costs.
Maersk, which handles about one in five containers shipped worldwide, said that though cargo volumes were still down on last year they had picked up more than forecast after falling sharply at the height of the coronavirus pandemic a few months ago.
“A.P. Moller – Maersk is on track to deliver a strong Q3 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services,” Chief Executive Soren Skou said in a statement. “Volumes have rebounded faster than expected, our costs have remained well under control, freight rates have increased due to strong demand,” Skou said.
Volumes in Maersk’s Ocean-division declined by around 3% in the third quarter compared to the same period last year, above an expected mid-single digit contraction, the company said.
The Danish company said it would cut 2,000 positions as a result of a major reorganisation announced last month, where it seeks to integrate its seaborne container and in-land logistics businesses.
Maersk currently has around 80,000 employees.
Shares in Maersk were down by around 1% on Tuesday morning.
The company expects restructuring costs of around $100 million in the third quarter related to the redundancies.
Maersk said it now expects full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) in the range of $7.5 billion to $8.0 billion before restructuring and integration costs, up from an earlier range of $6.0 billion to $7.0 billion.
Preliminary results for the third quarter showed revenue at $9.9 billion, while EBITDA before restructuring and integration costs came in at $2.4 billion, Maersk said.
(Reporting by Nikolaj Skydsgaard, editing by Louise Heavens and Susan Fenton)
MANILA, April 27 (Reuters) – The Philippines on Saturday denied a Chinese claim that the two countries had reached an agreement over an escalating maritime dispute in the South China Sea, calling...
CAIRO, March 2 (Reuters) – The Houthi Transport Ministry in Yemen said on Saturday there had been a “glitch” in undersea communication cables in the Red Sea as a result of actions...
by Captain John Konrad (gCaptain) In the current American labor landscape, the stark contrast between the assertive strides of transportation unions and the maritime sector’s unique labor challenges is striking....
December 11, 2023
Total Views: 20485
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.