“Worse than 2008”: World’s Largest Container Carrier on the Slowdown in Global Trade

[marmar]

“Worse than 2008”: World’s Largest Container Carrier on the Slowdown in Global Trade
by Wolf Richter • February 10, 2016


[font color="blue"]“Massive Deterioration,” the CEO called the phenomenon.[/font]

“Bellwether for global trade,” that’s how the Financial Times described Maersk Lines, the world’s largest container shipping company. It’s owned by Danish conglomerate AP Møller-Maersk, which also owns, among other divisions, Maersk Oil. The conglomerate reported fourth quarter earnings today. And they were a doozie.

Maersk B shares plunged over 9% to 7,395 Danish kroner, before bouncing off and closing at 7,875, down 3.6% for the day and down a breath-taking 52% from their peak on March 30 last year.

Global economic slowdown — or worse? That’s the question. This is what CEO Nils Andersen told the Financial Times in an interview after the earnings release:

“It is worse than in 2008. The oil price is as low as its lowest point in 2008-09 and has stayed there for a long time and doesn’t look like going up soon. Freight rates are lower. The external conditions are much worse, but we are better prepared.”

“Better prepared,” that is, than the Group had been in 2008.

He called global trade conditions “abnormal.” Containerized imports to Europe, Brazil, Russia, and West Africa all fell – in Europe and Brazil due to various economic reasons; in oil exporters Russia and West Africa due to the collapse in the price of oil. ..........(more)

http://wolfstreet.com/2016/02/10/worse-than-2008-maersk-global-trade-containers-oil/

[Mbrow]

1. I work for a subsidiary of Maersk

they are heavy in the oil stuff as well as government contracts running MSC ships.

[elleng]

3. Please keep us informed about the status of your business.

Thanks

[Mbrow]

4. our little slice should be good,

or I should say our jobs for the most part are. Because we are Goverment survey ships and Maersk is just the company that manages the personal and supplies. If they go away we stay with the ship unless the company that takes over is non union or another union. But most of the companies that do this are with our Union, AMO (American maritime Officers) and SIU (Seafarers International Union). Thanks for the posts

[elleng]

5. Thanks for the explanation.

'Nuts and bolts' are always interesting.

[RussBLib]

2. down down down

relentless

There goes another trillion or two dollars evaporating into thin air, or maybe the short sellers took it.