AMKBY - Red Sea Crisis Hits Maersk Outlook: 'Oversupply Will Cause Price Pressure Impact Results' | Benzinga
The impact of shipping disruptions hasn’t yet been felt in global commodity markets, but the companies that are carrying freight around longer routes are certainly feeling the pain.
What Happened: Shares in Danish shipping giant Moller Maersk (OTC:AMKBY) were down 15.5% in morning trade in the U.S. after it warned of the possible impact of the “new uncertainty” on its 2024 earnings. The company added that it was immediately suspending its share buyback program.
Vincent Clerc, CEO, said: “The current market remains one of robust volumes, but while the Red Sea crisis has caused immediate capacity constraints and a temporary increase in rates, eventually the oversupply in shipping capacity will lead to price pressure and impact our results.”
He added, when interviewed on CNBC earlier: “The impact of this situation is causing new uncertainty for how this is going to play out from an earnings perspective throughout the year.
“We have ...