Article Image
IPFS News Link • Business/ Commerce

Shipping giant Maersk: 'Significantly less demand' but 'no hard landing'

• by Greg Miller

It's getting increasingly ugly for shipping lines in the trans-Pacific market. Spot rates are sliding relentlessly with each passing week. Liners are starting to suspend entire service strings: Maersk just dropped two trans-Pacific services, MSC and Matson canceled one each.

Is Maersk CEO Soren Skou — whose company operates the world's second largest liner company — getting worried yet?

He doesn't sound worried, at least, not about Maersk itself.

Skou addressed questions on current market conditions during a live Reuters Newsmaker interview on Thursday. He voiced no concerns about Maersk and kept earnings guidance unchanged. However, his comments on sinking demand implied that carriers with less contract coverage and land-based logistics business than Maersk have something to worry about.