Maersk CEO: Shipping sector to recover slowly
The head of the world's biggest container shipping company, A.P. Moller Maersk A/S , said Friday that the global economy appears to be improving, but that the shipping sector may face a slower recovery than other areas.
"We are of the opinion that the global economy is moving in a better direction," Nils Smedegaard Andersen said on a conference call. He was speaking after Maersk released an earnings report showing the company swung to a 3.67 billion Danish krone ($702 million) loss in the first half, mainly due to lower shipping volumes and freight rates, which have been hit by the economic downturn.
"It's likely that the shipping cycle will be somewhat slower in improving," he said. "But we feel relatively optimistic for the group long term." "When markets return to normal we will be among those making money," he added.
Smedegaard Andersen said Maersk's cost-cutting program so far has saved it between $1 billion and $1.5 billion, partly from reducing the workforce, and that it aims to continue cutting costs.
"We are of the opinion that the global economy is moving in a better direction," Nils Smedegaard Andersen said on a conference call. He was speaking after Maersk released an earnings report showing the company swung to a 3.67 billion Danish krone ($702 million) loss in the first half, mainly due to lower shipping volumes and freight rates, which have been hit by the economic downturn.
"It's likely that the shipping cycle will be somewhat slower in improving," he said. "But we feel relatively optimistic for the group long term." "When markets return to normal we will be among those making money," he added.
Smedegaard Andersen said Maersk's cost-cutting program so far has saved it between $1 billion and $1.5 billion, partly from reducing the workforce, and that it aims to continue cutting costs.