Maersk is the world's second-largest container line by capacity. File Image / Pixabay
Shipping and logistics firm AP Moller-Maersk, the world's second-largest container line by capacity, saw its earnings slump in the first quarter as the abnormal strength seen in the boxship markets in recent years faded.
The firm saw EBITDA of $3.97 billion in the three months to March 31, down from $9.08 billion a year earlier, it said in an earnings release on Thursday. Profits dropped to $2.32 billion from $6.81 billion a year earlier.
"On the supply side of the Ocean market, the increasing stream of vessel deliveries and still limited scrapping activity is pushing up fleet growth," the company said in the statement.
"Moreover, easing supply chain bottlenecks and weaker demand on long-haul trades is releasing capacity to the market.
"Although some of the available capacity is being absorbed by increased idling, slower steaming and cancelled sailings, the gap between demand and supply widened in H2 2022 and Q1 2023.
"Spot rates (SCFI) approached pre-pandemic levels."