Maersk Reports 94% Q3 Profit Slump Amid Container-Market Decline

by Ship & Bunker News Team
Friday November 3, 2023

Container shipping and logistics firm AP Moller-Maersk saw a 93.7% slide in its profits in the third quarter amid the wider slump in the container markets.

The firm saw $554 million of profit in the third quarter, down from $8.91 billion in the same period a year earlier, it said in a quarterly results statement on Friday.

Revenue dropped to $12.13 billion, from $22.77 billion a year earlier.

"The financial results for Q3 2023 were in line with expectations in a difficult market environment, with good performance in Terminals and a stabilised Logistics & Services which partly offset continued erosion in Ocean," the company said in the statement.

"While volumes were up in most segments and cost reductions improved results, rates continued to erode, in particular in Ocean, and are now close to 2019-levels."

As part of a cost-cutting drive, the company now intends to lay off 10,000 of its employees worldwide.

"AP Moller-Maersk has intensified its cost reduction efforts and increased its existing restructuring programme," the company said.

"AP Moller-Maersk now aims to reduce the workforce below 100,000, from 110,000 in January 2023, resulting in savings of USD 600m in 2024 compared to 2023."

Ship & Bunker News Team
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