Maersk warns of dire box outlook

Maersk chairman Michael Pram Rasmussen told the group’s annual general meeting that the global economic downturn was having a negative impact on most of its businesses.
The container shipping markets had experienced unprecedented drops in transported volumes in early 2009 and this, combined with the addition of new tonnage, had led to a significant decrease in rates “to an untenable level”, Mr Pram Rasmussen said.
“Seen as a whole, the prospects for container market activities in 2009 are particularly negative,” he said.
The Danish conglomerate owns the world’s largest container liner, Maersk Line, which carries 15% of all container cargo in the world. Mr Pram Rasmussen said that tanker and offshore markets were also experiencing falling demand, hitting spot and contract rates.
“For 2009, however, the group has significant contracts, covering jack-up rigs, semisubmersible rigs, floating production storage and offloading systems and supply ships, which is positive in the current situation.”
The head of Maersk Line, Eivind Kolding, said that in March that the firm planned to lay up around 25 container carriers into 2010 to match the unprecedented drop in demand.
He said the outlook in 2009 for AP Moller-Maersk was very uncertain, particularly due to the slump in the global economy.
The group did not expect to make any profits in 2009 from the sale of ships Mr Pram Rasmussen said.
AP Moller-Maersk was still very well capitalised and held a considerable liquidity reserve, he said, and adding that the firm was not considering raising new capital.