Thursday, March 4, 2010

Maersk Details Massive Losses For Container Shipping Business In 2009

Annual Report Confirms Expectations
Shipping News Feature

DENMARK – Shipping giant A.P. Moller-Maersk has confirmed in its financial report for last year that it has suffered a loss for 2009 of $1 billion, in line with previous warnings that the company had given previously.

The loss is in sharp contrast to the profit the company made of almost $3.5 billion in 2008, and has largely been attributed to the terrible year that has been experienced across the container shipping sector with Maersk Line, the groups’ container shipping arm, actually losing $2.1 billion due to generally low rates throughout the year and 28% less volume handled.

However, Maersk also stated that it actions in cutting costs had resulted in substantial savings being made that would stand the company well in the future, and remained optimistic that 2010 would see the group post a modest profit as rates and volumes, particularly in the container markets, recover.

Moller-Maersk CEO Nils S. Andersen said of the results that: “The loss is significant, but 2009 was an extraordinary year with historically low rates and low demand. We managed to limit the loss by saving around USD 2 billion and we will continue to strengthen our competitiveness even further. We expect to return to modest profits in 2010.”