âIf you want an economic bellwether, look no further than Maersk, as its status as one of the worldâs largest container shipping companies makes it a fair proxy for global growth,â said an analyst.
In a sign that the global economy is in the midst of a severe downturn, the shipping giant Maersk revealed that they plan to reduce their workforce by 10,000 workers after they revealed their profits were down by massive margins, in a sign that international trade and the purchasing of goods is greatly minimizing.
gCaptain, an outlet on all-things naval and shipping, reported on November 3rd: âA.P. Moller-Maersk has announced plans to cut its workforce by 10,000 employees due to challenging market conditions in the ocean shipping industry as the pandemic-fueled bubble in container shipping bursts. The container shipping giant is facing lower freight rates and volume, which have prompted the need for cost-cutting measures.â
The report added, âIn its financial results for the third quarter of 2023, Maersk reported revenue of $12.1 billion, a significant decrease from $22.8 billion in the same period last year.â Container Magazine also noted that Maersk âlooks to contain costs after its profit before tax plunged by 92% to $691M in the third quarter of the year as market overcapacity caused significant price drops.â
Furthermore, qCaptain added: âThe companyâs earnings before interest and taxes (EBIT) margin was 4.4%, impacted by the decline in freight rates and volumes. Consolidated EBITDA came in at $1.8 billion for the quarter, down more than 80% from the $10.8 billion in Q3 2022.â
Moreover, in a press release Maersk also highlighted some of the important financial data from their latest quarterly report..
