Shipping giant Maersk warned on Thursday that the coronavirus outbreak would weigh on earnings this year, compounding the woes of a container shipping industry already subdued by trade wars and an economic slowdown. Maersk, which reported a lower-than-expected fourth-quarter profit on Thursday, forecasted a weak start to the year because factories in China were closed for longer than usual after the Chinese New Year holiday.
"Weekly container vessel calls at key Chinese ports were significantly down compared to last year during the last weeks of January and the first weeks of February," Maersk, the world's biggest container shipping firm, said in a statement.
It reiterated, however, a forecast for growth in global container demand of 1 percent to 3 percent this year, saying Chief Executive Soren Skou remained optimistic of a rebound in the second quarter. Global container demand grew 1.4 percent in 2019 and 3.8 percent the year before. "The outlook for 2020 is impacted by the current outbreak of the coronavirus in China, which has significantly lowered visibility on what to expect in 2020," Maersk said.
"The market had already priced in a negative impact from the coronavirus outbreak and it looks like they had priced in a bit too much in the case of Maersk," said Sydbank analyst Mikkel Emil Jensen of the rise.
Maersk said on Wednesday it had agreed to buy US warehousing and distribution firm Performance Team as part of plans to deliver more customised logistics solutions.
Comments
Comments are closed for this article.