Maersk accounts 45% drop in profits due to Red Sea crisis

08 Aug 2024 CW Team

Danish shipping giant Maersk announced a 45% decline in net profit for the second quarter, attributing the drop to supply chain disruptions caused by the on-going Red Sea crisis, which has led to increased operating costs.

The crisis, exacerbated by attacks from Yemen's Iran-backed Huthis, has forced some shipping companies to reroute around southern Africa to avoid the Red Sea, a critical maritime corridor that handles about 12% of global trade.

Since November, the Yemeni rebels have targeted shipping in the Red Sea with drones and missiles, citing solidarity with Palestinians amid the Gaza conflict.

For the April to June period, Maersk reported a net profit of $798 million and a revenue of $12.77 billion, both of which fell short of analysts' expectations. Operating profit also decreased by 26% to $2.14 billion.

Maersk, the world's second-largest shipping company, has ceased transiting the Red Sea due to on-going risks.

"The situation in the Red Sea remains severe, continuing to pressure global supply chains. We anticipate these conditions will persist through the end of the year," said Vincent Clerc, CEO, Maersk.

To mitigate the impact, Maersk has invested in additional equipment across its operations and is working to support its customers amid the disruptions.

Recently, Maersk raised its full-year underlying operating profit forecast by $2 billion, projecting a range of $9 billion to $11 billion, driven by increased freight costs due to the crisis.

(ET)

Infrastructure Energy

22 Oct 2025

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..