Market overcapacity and Red Sea crisis mitigation measures hit Maersk forecast for 2024
Maersk has predicted an uncertain market environment for the year ahead due to the impact of the shipping crisis in the Red Sea, forecasting an underlying operating result within the range of breaking even and a US$5bn loss for 2024.
Maersk CEO Vincent Clerc stated: “The current market remains one of robust volumes, but while the Red Sea crisis has caused immediate capacity constraints and a temporary increase in rates, eventually the oversupply in shipping capacity will lead to price pressure and impact our results.”
On a call with investors, he acknowledged that while the crisis is having a temporary positive impact on revenue, the measures that carriers are taking to maintain services, such as buying or leasing containers and chartering ships, would hit profitability beyond the duration of the crisis.
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