All articles tagged with #maersk
Maersk announced that its vessels continue to pass through the Strait of Hormuz despite regional tensions, but the company is prepared to re-evaluate its operations based on security assessments following U.S. strikes on Iranian nuclear facilities.
The FBI states that the Baltimore bridge collapse is not linked to terrorism, while Maersk, the company that chartered the container ship involved in the collision, operates a fleet of over 700 vessels and has faced challenges such as crew layoffs and suspension of transits due to attacks. The container ship, Dali, had been inspected 27 times since 2015 and had two deficiencies, with no crew members injured in the incident. Search and rescue operations are ongoing, with dive operations beginning, and one patient is being evaluated at the University of Maryland Medical Center. The ship was piloted by local pilots, and had been involved in a previous incident in Belgium in 2016.
CEO Rolf Habben Jansen of Hapag-Lloyd, the world's fifth-largest ocean carrier, expresses optimism for trade demand in the second half of 2024, despite a drop in 2023 net profit and increased costs due to Red Sea diversions. The company is facing challenges from attacks in the Red Sea, increased emissions, and a longer shipping route. Hapag-Lloyd has formed a new ocean alliance with Maersk to improve schedule reliability, and U.S. shippers are preparing for potential port strikes during the peak shipping season.
Maersk warned that container shipping overcapacity would impact profits more than expected this year and downplayed the boost from the jump in freight rates due to Red Sea disruptions, leading to a 17% plunge in its shares. The company suspended its share buyback program and expects the oversupply of vessels to affect earnings in the coming years, with a projected underlying EBITDA of $1-6 billion for 2024, below analyst expectations. CEO Vincent Clerc cautioned against expecting a significant profit boost from the Red Sea crisis and emphasized the long-term impact of overcapacity on shipping prices.
A.P. Moller-Maersk A/S shares plummeted after the company warned of an impending industry slowdown once the current boost to freight rates from the Red Sea conflict fades, with global container trade growth expected to be at 2.5% to 4.5% for the full year. About a third of Maersk’s fleet is affected by the Red Sea turmoil, and the company estimates that the global container fleet will grow 12% to 13% this year as new ships are launched, exacerbating the industry's overcapacity problem. Maersk's 2024 financial outlook missed most analyst estimates, and the company suspended its stock buyback program due to market uncertainty.
Maersk's shares dropped after the company warned about the shipping outlook and suspended its buyback program, citing uncertainties in the global economy and trade tensions. The decision reflects the challenges faced by the shipping industry amid the ongoing pandemic and geopolitical issues, leading to concerns about the company's future performance in the stock market.
Danish shipping giant Maersk's shares dropped over 12% after announcing "high uncertainty" in its 2024 earnings outlook due to Red Sea disruptions and oversupply of shipping vessels, leading to the suspension of share buybacks. The company reported lower-than-expected fourth-quarter profit, with EBITDA dropping to $839 million. Global supply chains have been disrupted since late 2023 due to diversions away from the Red Sea following attacks by Yemen's Houthi rebels, leading to increased delivery times and costs, potentially impacting inflation.
The US Navy intercepted missiles in the Red Sea while escorting two Maersk ships carrying US military supplies, forcing the vessels to turn around after explosions were reported nearby. The ships, operated by Maersk's US subsidiary, were accompanied by the US Navy through the Bab al-Mandab Strait off Yemen. Yemen's Houthi militants claimed responsibility for firing ballistic missiles at US warships protecting the commercial vessels, leading to a two-hour "clash." The vessels and crew were unharmed and escorted back to the Gulf of Aden by the US Navy. The incident has prompted Maersk to suspend Red Sea transits by its US subsidiary, impacting maritime trade through the Suez Canal.
Maersk has suspended its US-flagged vessels' operations in the Red Sea after two ships carrying US government cargo and under naval escort were targeted by the Houthis while transiting the Bab el Mandeb. The US Navy intercepted multiple projectiles, and the ships and crew were unharmed. This incident follows a previous attack on the Maersk Hangzhou and a claimed attack on the Ocean Jazz. The suspension is due to the escalation of risk, and experts believe the Houthi attacks may be regrouping rather than diminishing in capability.
Two American-flagged ships carrying cargo for the U.S. Defense and State departments were attacked off Yemen, with suspicion falling on Houthi rebels. The U.S. Navy intercepted some of the incoming fire, and the ships, operated by Maersk Line, were escorted back to the Gulf of Aden. The attacks raise concerns about the safety of shipping through the Bab el-Mandeb Strait, and Qatar warned of affected deliveries due to ongoing Houthi attacks. The rebels have targeted ships in the Red Sea since November, citing Israel's war on Hamas, and have now threatened American and British vessels.
Due to drought conditions affecting the Panama Canal, Maersk has announced that vessels carrying freight from Oceania will no longer traverse the canal and will instead use a "land bridge" involving ports in Panama and rail transport. The drought has led to water depth and weight restrictions on ships passing through the canal, prompting Maersk to make changes to its services to minimize customer impact. The Panama Canal Authority has increased transit slots, but the water level issues come as it is expected to receive additional vessel traffic due to shippers avoiding the Red Sea. The decision will impact declining cargo volume passing through the canal, despite record revenue reported by the Canal Authority.
Due to low water levels at the Panama Canal, Maersk will use trains to transport cargo for some vessels, causing delays for southbound vessels, while Hapag Lloyd will not follow suit due to insufficient rail capacity for its larger ships. The drought in Panama, worsened by the El Nino weather phenomenon, has led to decreased transit slots at the canal, forcing companies to reroute ships and causing disruptions in the global shipping network.
Ongoing disruption to trade flows through the Red Sea, due to attacks by Houthi militants, could have significant consequences on global growth, according to Maersk CEO Vincent Clerc. The company has diverted its vessels from the Red Sea for the foreseeable future, leading to potential delays and increased freight rates. The situation has been further complicated by a wave of strikes in Germany and the hijacking of an oil tanker near the Gulf of Oman, prompting concerns about potential product delays and escalating conflict in the Middle East.
Maersk's CEO warns that the shipping disruption in the Red Sea, caused by the recent closure of the Suez Canal and ongoing geopolitical tensions, may persist for months, impacting global trade and logistics.
Despite a strong December jobs report with 216,000 jobs added and a steady unemployment rate of 3.7%, global shipping delays due to Houthi rebel attacks in the Red Sea are posing a threat to the U.S. economy's momentum. Major shipping companies like Maersk are diverting from the Suez Canal, impacting over $200 billion in trade. The Biden administration is monitoring the situation closely, as past supply chain disruptions have had significant economic consequences. While energy costs have not been heavily impacted, the potential effects on global manufacturing and consumer goods remain a concern.