Global supply chain chaos to continue, Maersk warns

3rd August 2022

// Danish shipper Maersk warns that chaos in global supply chains will continue

// Maersk has been experiencing demand for nearly two years after supply chain disruptions caused by Covid sent container prices increasing to record highs

Danish shipper Maersk has warned that chaos in global supply chains will continue for several more months.

An “exceptional market” for transport companies including sky-high container rates will result in further bumper profits and will not ease until late 2022, according to Maersk.

Maersk, which handles about a sixth of the global container trade, said its full-year underlying earnings before tax will be around £25 billion.

It is the second upgrade to its profit forecast this year.

“The strong result is driven by the continuation of the exceptional market situation within [ocean freight],” Maersk said.

“Congestion in global supply chains leading to higher freight rates has continued longer than initially anticipated.”

Maersk said its forecasts are based on a “gradual normalisation” across ocean freight taking place in the final quarter of this year.

It will publish full results for the second quarter on Wednesday.

The company and its rivals have been experiencing demand for nearly two years after supply chain disruptions caused by Covid sent container prices increasing to record highs.

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Supply Chain

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Supply Chain

3rd August 2022

Sahar Nazir

// Danish shipper Maersk warns that chaos in global supply chains will continue

// Maersk has been experiencing demand for nearly two years after supply chain disruptions caused by Covid sent container prices increasing to record highs

Danish shipper Maersk has warned that chaos in global supply chains will continue for several more months.

An “exceptional market” for transport companies including sky-high container rates will result in further bumper profits and will not ease until late 2022, according to Maersk.

Maersk, which handles about a sixth of the global container trade, said its full-year underlying earnings before tax will be around £25 billion.

It is the second upgrade to its profit forecast this year.

“The strong result is driven by the continuation of the exceptional market situation within [ocean freight],” Maersk said.

“Congestion in global supply chains leading to higher freight rates has continued longer than initially anticipated.”

Maersk said its forecasts are based on a “gradual normalisation” across ocean freight taking place in the final quarter of this year.

It will publish full results for the second quarter on Wednesday.

The company and its rivals have been experiencing demand for nearly two years after supply chain disruptions caused by Covid sent container prices increasing to record highs.

Click here to sign up to Retail Gazette‘s free daily email newsletter

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