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)

Real Estate

04 Aug 2026

LML Realty Launches Cinema Campaign on Industrial Vision

LML Realty has launched a cinema advertising campaign in partnership with PVR INOX across 81 screens in Gurugram and Faridabad, showcasing the brand’s transformation from a mobility icon to an industrial infrastructure developer.The campaign features a cinematic brand film tracing LML’s journey since 1972, beginning with its iconic scooters and highlighting its evolution into creating infrastructure solutions that support India’s manufacturing growth.The film focuses on LML Industrial Park at Jhirka Valley, the company’s flagship industrial development approved under the Haryana Govern..

IIM Ahmedabad Publishes Case Study on HoABL’s Business Model

The Indian Institute of Management Ahmedabad (IIMA) has published a case study on The House of Abhinandan Lodha (HoABL), examining the company’s digital-first consumer journey and business model that created India’s branded land category.Titled “HoABL: Ready for Scaling Up”, the case study has been published by the IIMA Case Centre and co-authored by Sourav Borah, Associate Professor of Marketing at IIMA, and Dr Aparna Kansal of IMT Ghaziabad. IIMA case studies are used across management and executive education programmes to help students and business leaders analyse strategic decision..

Advait Energy and MEIL Partner for Energy Transition Projects

Advait Energy Transitions Limited (AETL) and Manipal Energy Infratech Limited (MEIL), a company of The Manipal Group, have entered into a strategic Memorandum of Understanding (MoU) to collaborate on power and energy transition opportunities across India and international markets.The partnership aims to combine AETL’s expertise in innovative energy technologies and manufacturing with MEIL’s EPC execution capabilities and project management experience. The collaboration will focus on opportunities across Power Transmission & Distribution, Renewable Energy, Battery Energy Storage Systems..