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Exclusive Maersk Slashes 10,000 Jobs as Shipping Demand Plummets

Maersk Slashes 10,000 Jobs as Shipping Demand Plummets

Maersk Slashes 10,000 Jobs as Shipping Demand Plummets

Breaking News: Maersk Makes Drastic Move, Cutting 10,000 Jobs Amidst Plummeting Shipping Demand! Read Now for the Inside Scoop! 🚢💥 #MaerskNews

The company is to lay off another 3,500 workers in addition as a result of reduced freights rates and demand.

In early this year, AP Moller-Maersk made “rigorous cost containment measures” and then it axed off 6,500 jobs.

In the last quarterly results of a firm that moves goods for big retail companies like nike, profits plummeted by 92 percent.

Additional job cuts were necessary to address a “worsening” of “sea freight rates”.

Lockdowns were lifted at the beginning of the Covid leading to massive increase in demand for stock by companies which could only be brought about through increased shipping costs.

High demand resulted is port congestion as well as other logistic problems in UK. An inflated Asian shipping container deficit also contributed to the inflationary environment.

On the other hand, higher inflation rates together with increased interests recently discourage consumption of goods and services thus lowering market demand.

Maersk had also cautioned that there would be lower demands on seafreights this year back in august.

Danish firm has told that demand has been under enormous pressure over last couple of months.

According to the CEO of Maersk “our industry is operating in a new normal with depressed demand, prices return to the historical level but there is an increasing cost.

Overcapacity in most regions this summer has brought down prices without sign of improved shiprecycling/ idling.

With this, the company’s worldwide workforce will decrease below 100,000 thereby resulting in massive job cuts. In the coming few months 35 hundred new positions will be axed while the others will follow before the end of 2024.

The workforce is reported to save the company a staggering ÂŁ600 m pounds by the end of next year; though it remains a mystery exactly where and which jobs are being axed off.

Approximately 103,500 people work for the company, which commands almost one-sixth of the world’s container traffic, down from 110,000 earlier in the year.

A economic harbinger

According to AJ Bell’s investment director Russ Mould, Maersk’s most recent results indicate that “the global economy is losing speed.”

“If you want an economic bellwether, look no further than Maersk, as its status as one of the world’s largest container shipping companies makes it a fair proxy for global growth,” he stated.

“Transportation demand will be strong if the economy is going well, but the opposite will apply if there are clouds on the horizon.”

Maersk’s pre-tax profits for the three months ended in September decreased to $691 million from $9.1 billion during the same time the previous year. Sales fell from $22.7 billion to $12.1 billion.

Overcapacity in the industry, according to Mr. Mould, is making the current state of container shipping worse. He described it as “great if you are the person paying to move goods from A to B as it should enable you to barter for a lower price, but terrible if you’re the one owning and operating the ships”

The cost of shipping has plummeted

The Entertainer toy company’s founder, Garry Grant, stated last week on the BBC’s Today program that the retailer’s goods’ freight costs had “collapsed over the last six months, back to the pre-pandemic levels”.

The cost of a container, he said, had dropped from $18,000 to roughly $2,000 in the previous year, which had “really helped us to enable us to bring down some prices and, in most cases, make sure that prices haven’t gone up”.

Early on Friday, shares of the group fell 11.1% in response to Maersk’s findings.

The company declared that it would stick to its projected income and profit margins, although it cautioned that these amounts would fall short of its initial projections.

Additionally, it issued a warning that “the improvements expected in the last three months of this year and in volumes in 2024 can be wiped out by a slowing global economy, risks of financial stress, and a long list of geopolitical tensions, ranging from tense China-US relations to war in Ukraine and the Middle East.”

Maersk tracking

Customers can use Maersk tracking to monitor the progress of their shipments. By using the container number, bill of lading number, or airway bill number, shipments can be followed.

Customers can visit the Maersk website and type their tracking number into the search field to follow the progress of a shipment. After that, the website will show the shipment’s current status, location, and expected arrival time.

Customers can also obtain comprehensive details about their shipment through Maersk tracking, including:

Maersk tracking

For clients that need to monitor their goods, Maersk tracking is a helpful tool. It can assist clients with logistics planning and on-time delivery of their shipments.

To follow a shipment’s progress on the Maersk website, follow these steps:

  1. Go to the Maersk website: https://www.maersk.com/
  2. Click on the “Tracking” tab in the top menu bar.
  3. Enter your tracking number in the search bar.
  4. Click on the “Track” button.
  5. The website will display the current status of your shipment.

The Maersk app allows you to track your shipment as well. You may get the app from Google Play and the App Store.

How many ships does Maersk have

Maersk’s fleet consists of 744 ships. This covers both owned and chartered boats. Approximately sixteen percent of all merchant container fleets worldwide are owned by Maersk, the largest container shipping corporation in the world.

Maersk’s vessels are used on over 300 ports in 132 countries that are connected by a global network of commerce routes. A range of ship types, including gas carriers, tankers, bulk carriers, and container ships, are part of the company’s fleet.

In an effort to lessen its influence on the environment, Maersk is investing in innovative technologies to increase the sustainability and efficiency of its ships. For its ships, the business is also developing alternate fuels.

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