It is a turbulent time for the shipping industry, which is grappling with increasing consumer demand, container shortages and bottlenecks in ports.
Maersk, the world’s largest container shipping company, saw higher volumes and record profits as freight rates skyrocketed. The Danish shipping company, whose customers include Walmart and Nike, announced in May that its first-quarter sales increased 30% year over year to $ 12.4 billion.
“It’s tighter now than ever and it doesn’t look like it’s going to loosen up anytime soon,” said Alan Murphy, CEO of marine consultancy Sea-Intelligence.
Maersk has a fleet of over 700 ships and handles 1 in 5 containers shipped by sea. The company owns terminals around the world and has a growing land-based logistics business. On average, a Maersk container ship calls at a port somewhere in the world every six minutes.
But, with the introduction of vaccines in the US and the shift in consumer spending towards services, will Maersk and its competitors be able to maintain their momentum? And what do bottlenecks in ports and higher freight rates mean for US consumers?
Watch the video to find out what’s next for Maersk.
Leaving a tip is an American custom. Why is that a problem?
Why Americans Eat More Snacks