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World's largest shipping company says demand will decline for rest of 2020 - Business Insider

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World's largest shipping company says demand will decline for rest of 2020

"Global demand growth for containers is overall still expected to contract in 2020," Maersk CEO Søren Skou told investors on Wednesday.The CEO of shipping giant Maersk is projecting that demand for containers will decline globally in 2020. Maersk, which is seen as proxy for global trade, also reinstated its full-year guidance to be roughly $6 billion to $7 billion, up from $5.5 billion earlier in 2020.

"Global demand growth for containers is overall still expected to contract in 2020," CEO Søren Skou said in a Wednesday earnings call. its own forecast after "post[ing] an increase in operating profit of 25% to $1.7 billion" in second quarter EBITDA . Maersk previously announced in June that it was projecting an operating profit of $1.5 billion, Markets Insider"All through the pandemic, our business has been negatively impacted by lower demand," Skou said on the call. "Our single biggest challenge has been the difficulties with getting our seafarers relieved when their tours were up due to travel restrictions, closed borders and lack of flights.

Maersk, which is sometimes seen as a proxy for international trade, now has "an EBITDA expectation of $6 billion to $7 billion" for this year, per its earnings report. Something is loading. Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please emailfrom Business Insider Intelligence on how COVID-19 is affecting industries.Get your weekly recap of all things electric vehicles, airlines, and more. Sign up for our Shifting Gears newsletter now.

 

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