Maersk to cut 10,000 jobs as shipping demand drops - Reuters

[TexasTowelie]

Maersk, which controls about one-sixth of global container trade, announced it would cut at least 10,000 jobs due to overcapacity, rising costs and weaker prices.

[progree]

1. Here's a text version from Reuters

Last edited Mon Nov 6, 2023, 01:18 PM - Edit history (1)

https://www.reuters.com/business/shipping-giant-maersk-q3-above-expectation-sees-fy-lower-end-range-2023-11-03/

Maersk cutting at least 10,000 jobs as shipping boom unravels, Reuters, 11/3/23

Shipping group A.P. Moller-Maersk (MAERSKb.CO), reported a steep drop in third-quarter profit and revenue on Friday and said it would cut at least 10,000 jobs in the face of overcapacity, rising costs and weaker prices, sending its shares tumbling.

Maersk, which controls about one-sixth of global container trade, transporting goods for a host of major retailers and consumer goods companies such as Walmart and Nike, flagged a steeper downturn in demand than analysts and investors had expected.

"The new normal we are now headed into is one of more subdued macroeconomic outlook, and thus soft volume demands for the coming years, prices back in line with historical levels, inflationary pressures on our cost base, especially

[snip]

"If the fourth quarter does not deliver some type of improvements, then I think we're looking at a pretty dire situation in 2024," he said. Negative revenue growth in the third quarter came mainly from the retail and lifestyle sector, especially in North America, as well as automotive and technology, Clerc said.

[snip]

EDITED TO ADD THE LINK

[3Hotdogs]

2. Interesting. News reports that our economy continues to grow. Maersk's action seems to contradict this.

Are we buying less Chinese shit?

Is the plastic Santa I ordered, not going to get here?

[2naSalit]

3. K&R

[bucolic_frolic]

4. Technology plateau reached

The cost of shipping is forcing efficiencies on the market. Companies source and consumers buy locally to the extent they are able because it's cheaper. We only need things from overseas that we do not produce locally or regionally. It takes a major leap in innovation or technology to fork over for new products that make economic sense. This is the new normal.

[OAITW r.2.0]

5. If Maersk is doing this, the major Chinese ports must be laying off a lot of workers as well.

China is imploding...real estate and personal incomes are getting hammered.