Maersk Faces Steep Profit Decline Amid Red Sea Disruptions

The shipping giant Maersk reports a significant drop in profits and warns of ongoing risks in the Red Sea, affecting global shipping routes and freight rates.

Maersk's net profit plummeted to $3.8 billion in 2023 from $29.2 billion in 2022, amid overcapacity and declining freight rates.
The company forecasts a challenging 2024 with core profit expectations between $1 billion and $6 billion, citing Red Sea disruptions and oversupply of container vessels.
Yemen's Houthi rebels have targeted over 40 commercial vessels since November, prompting Maersk and others to reroute ships, increasing costs and impacting global trade.
Maersk's stock price fell more than 13% following the earnings report, which also announced the suspension of its share buyback plan.
The company plans to spin off its towage business, Svitzer, as a separate listed company, amidst the current market uncertainties.