Maersk Reports 87% Profit Slump for 2023

by Ship & Bunker News Team
Thursday February 8, 2024

Container line AP Moller-Maersk reported an 87% slump in its profits for last year as the global container market weakened.

The firm saw $3.908 billion in profit in 2023, down from $29.321 billion the previous year and the least since 2020, it said in its annual report on Wednesday.

The company's revenue for 2023 was $51.065 billion, down by 37.4% on the year.

"In 2023, the logistics markets experienced a normalisation from the disruptions of the logistics industry in 2020-2022, due to COVID-19, accelerating already existing issues in the global supply chains and with a significant impact on world trade," the company said in the report.

"In previous years, the demand for logistics services significantly increased, and, in turn, freight rates saw all-time highs due to capacity shortages, where container availability and air capacity remained tight, and wait times for vessels outside of ports remained lengthy given the bottlenecks in landside transportation and warehousing.

"In this exceptional market, freight rates peaked in Q3 2022, which for A.P. Moller - Maersk was the 16th quarter in a row with year-on-year earnings growth.

"After that, the high demand eventually started to normalise as congestions eased, and consumer demand declined leading to an inventory overhang, the correction of which resulted in rapid and steep declines in shipped volumes and rates starting in late Q3 2022."

Ship & Bunker News Team
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