Danish shipping giant Maersk has predicted that shipping volumes will drop by as much as 25% in the second quarter of 2020 as a direct result of the impact of the current pandemic on global trade. Nevertheless, in a statement, CEO Søren Skou said Maersk is “strongly positioned to weather the storm”. Indeed, the firm posted a profit of US$197 million for the first quarter of 2020.
Maersk announced that in the first quarter of 2020, it had cancelled more than 90 sailings, equivalent to 3.5% of total shipping capacity, to deal with the slowdown in trade and keep freight rates from falling. Moreover, the company expects to cancel around 140 sailings in the second quarter of the year.