A.P. Moller-Maersk recently released financial results for the third quarter.  Profit fell from $8.8 billion in Q3 of 2022 to $521 million for the most recently completed quarter.  The Ocean Division posted a loss.  Similar results were released by competitor Hapag Lloyd with the shares of both shipping companies falling by an average of 10 percent following publication of results.

During the COVID period, demand for goods increased freight rates leading to improved profits and expansion in shipping capacity.  Spending has fallen sharply since 2022 as reflected in a 60 percent decline in freight rates during the most recent quarter.  Ocean shippers are mothballing vessels and laying off superfluous workers.

An analyst at XENETA, a shipping data service, stated, “2024 will most definitely be tough with container demand at about a two percent increase and fleet growth at six percent representing an oversupply of capacity into 2025.”