Maersk accounts 45% drop in profits due to Red Sea crisis
PORTS & SHIPPING

Maersk accounts 45% drop in profits due to Red Sea crisis

Danish shipping giant Maersk announced a 45% decline in net profit for the second quarter, attributing the drop to supply chain disruptions caused by the on-going Red Sea crisis, which has led to increased operating costs.

The crisis, exacerbated by attacks from Yemen's Iran-backed Huthis, has forced some shipping companies to reroute around southern Africa to avoid the Red Sea, a critical maritime corridor that handles about 12% of global trade.

Since November, the Yemeni rebels have targeted shipping in the Red Sea with drones and missiles, citing solidarity with Palestinians amid the Gaza conflict.

For the April to June period, Maersk reported a net profit of $798 million and a revenue of $12.77 billion, both of which fell short of analysts' expectations. Operating profit also decreased by 26% to $2.14 billion.

Maersk, the world's second-largest shipping company, has ceased transiting the Red Sea due to on-going risks.

"The situation in the Red Sea remains severe, continuing to pressure global supply chains. We anticipate these conditions will persist through the end of the year," said Vincent Clerc, CEO, Maersk.

To mitigate the impact, Maersk has invested in additional equipment across its operations and is working to support its customers amid the disruptions.

Recently, Maersk raised its full-year underlying operating profit forecast by $2 billion, projecting a range of $9 billion to $11 billion, driven by increased freight costs due to the crisis.

(ET)

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

Danish shipping giant Maersk announced a 45% decline in net profit for the second quarter, attributing the drop to supply chain disruptions caused by the on-going Red Sea crisis, which has led to increased operating costs. The crisis, exacerbated by attacks from Yemen's Iran-backed Huthis, has forced some shipping companies to reroute around southern Africa to avoid the Red Sea, a critical maritime corridor that handles about 12% of global trade. Since November, the Yemeni rebels have targeted shipping in the Red Sea with drones and missiles, citing solidarity with Palestinians amid the Gaza conflict. For the April to June period, Maersk reported a net profit of $798 million and a revenue of $12.77 billion, both of which fell short of analysts' expectations. Operating profit also decreased by 26% to $2.14 billion. Maersk, the world's second-largest shipping company, has ceased transiting the Red Sea due to on-going risks. The situation in the Red Sea remains severe, continuing to pressure global supply chains. We anticipate these conditions will persist through the end of the year, said Vincent Clerc, CEO, Maersk. To mitigate the impact, Maersk has invested in additional equipment across its operations and is working to support its customers amid the disruptions. Recently, Maersk raised its full-year underlying operating profit forecast by $2 billion, projecting a range of $9 billion to $11 billion, driven by increased freight costs due to the crisis. (ET)

Next Story
Infrastructure Urban

India, US to promote sustainable aviation fuel and hydrogen in buses

India and the United States have agreed to promote sustainable aviation fuel (SAF), electrification of medium and heavy-duty vehicles, and the use of hydrogen in buses, tractors, and heavy equipment. This decision came during the Strategic Clean Energy Partnership (SCEP) dialogue between US Energy Secretary Jennifer Granholm and Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri in Washington, DC. Both nations also encouraged increased investments in each other's clean energy markets. The joint statement emphasised the importance of a "just, orderly, and sustainable energy trans..

Next Story
Infrastructure Transport

Tuticorin Airport upgradation set for December completion

Tuticorin Airport in Tamil Nadu is undergoing a significant upgrade, with an expected completion date in December 2024. The project, valued at Rs 3.81billion, is being carried out by the Airports Authority of India (AAI) and involves the extension of the runway to accommodate A-321 type aircraft, construction of a new apron, a new terminal building, a technical block with a control tower, and a new fire station. The new terminal building, covering 17,500 square meters, will significantly enhance the airport's capacity, enabling it to serve 1,440 passengers during peak hours and handle up to 2 ..

Next Story
Infrastructure Transport

Airfare hike not tied to increased airport charges; ACI

The Airports Council International (ACI) stated that rising airfares are not linked to increased airport charges. Airport charges are crucial for infrastructure development within the commercial aviation ecosystem, but they remain a minimal part of the overall airfare. Stefano Baronci, Director General of ACI Asia Pacific & Middle East, emphasized that airports are infrastructure-intensive businesses, with costs dominated by maintaining essential infrastructure such as runways, taxiways, aprons, and terminal buildings. He noted that neglecting the capital expenditure needed to support future g..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000