Courtesy of Mish.
Shipping is a strong indication on the health or weakness of the global economy. So let’s take a look at what’s happening.
World’s Largest Shipper Cancels 39 Voyages
The Wall Street Journal reports Maersk Line to Cut 4,000 Jobs as Market Deteriorates
The world’s biggest container-ship operator is altering course, slashing jobs and canceling or delaying orders for new vessels after years weathering a sharp downturn in the container-shipping market.
Danish conglomerate A.P. Møller-Maersk A/S said Wednesday its Maersk Line container-shipping unit would cut 4,000 jobs from its land-based staff of 23,000. It is also canceling options to buy six Triple-E vessels, the world’s largest container ships, to cope with the deepest market slump in the industry since the 2009 global financial crisis. Maersk said it would also push back plans to purchase eight slightly smaller vessels.
After issuing a surprise profit warning last month, Maersk signaled it, too, was no longer immune to a combination of slowing global growth and massive container ship overcapacity on many routes.
The conglomerate said it would cut its annual administration costs by $250 million over the next two years and would cancel 35 scheduled voyages in the fourth quarter. That is on top of four regularly scheduled sailings it canceled earlier in the year.
Shipping Rates Plunge
Over-Capacity Crisis, Next Year Will be Worse
Ship & Bunker reports Box Markets are in an Over-Capacity Crisis, Next Year Will be Worse
Credit managers may well be keeping an even closer eye on box carriers next year, following a warning from Drewry that the sector is set to face even tougher times in 2016 as the in-balance of supply and demand slides to its worst since financial crisis hit 2009.
And the research agency says the slump could last for several years….
