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 Transport

09 Jan 2026

India Becomes First to Produce Bio-Bitumen for Roads

India has become the first country in the world to commercially produce bio-bitumen for use in road construction, according to Road, Transport and Highways Minister Nitin Gadkari. Bitumen, a black and viscous hydrocarbon derived from crude oil, is a key binding material in road building, and the bio-based alternative is expected to significantly improve the sector’s environmental footprint.Addressing the CSIR Technology Transfer Ceremony in New Delhi, Mr Gadkari congratulated Council of Scientific and Industrial Research on achieving the milestone, noting that the initiative would help curb ..

HILT Policy Seen Boosting Telangana Revenue Sharply

The Hyderabad Industrial Land Transformation (HILT) Policy is expected to generate around Rs 1.08 billion in revenue for the Telangana state exchequer, according to Deputy Chief Minister Bhatti Vikramarka Mallu. Speaking in the Telangana Legislative Assembly, he said the policy would be implemented within a six-month timeframe in a transparent manner, with uniform rules applicable to all stakeholders. Mr Vikramarka noted that without the HILT Policy, the state would have earned only about Rs 1.2 million per acre. Under the new framework, however, revenue is projected to rise sharply to Rs 70 ..

India Post, MoRD Tie Up to Boost Rural Inclusion

The Department of Posts and the Ministry of Rural Development have signed a Memorandum of Understanding to accelerate rural transformation and expand financial, digital and logistics services for Self-Help Groups (SHGs) and rural households across India. The agreement was signed in the presence of Union Minister of Communications and Development of North Eastern Region Jyotiraditya M. Scindia and Union Minister of Rural Development and Agriculture and Farmers’ Welfare Shivraj Singh Chouhan. The collaboration aligns with the government’s “Dak Sewa, Jan Sewa” vision and seeks to repositi..