Container volumes at the world’s largest container shipping company, A.P. Moller – Maersk, are expected to drop by anywhere between a fifth to a quarter in the second quarter of 2020.
A.P. Moller – Maersk chief executive Søren Skou said that visibility remained low for April, May and June of 2020 as a result of the Covid-19 pandemic, but there would be a significant contracting of global demand.
In a statement to investors Moller – Maersk said that in its ocean business, there was a marked reduction in demand, especially in East-West trades, but also globally. To manage the situation a number of sailings had been cancelled, and vessels have been idled.
It said that in total, more than 90 sailings, leading to a decline of 3.5% in deployed capacity, were idled in Q1 and for Q2 some 140 blanked sailings are expected.
“We continue to support our customers in keeping their supply chains running, however as global demand continues to be significantly affected, we expect volumes in Q2 to decrease across all businesses, possibly by as much as 20% -25%,” said Skou.
“2020 is a challenging year, but as we proactively respond to lower demands and show progress in our transformation and financial performance, we are strongly positioned to weather the storm.”