Maersk Earnings Weighed Down by Sharp Drop in Freight Rates and Volumes

Shipping giant’s profit falls by more than half as retailers try to cut bloated inventories

The container ship Maersk Batam is loaded in the Port of Southampton, on the south coast of England. Photo: adrian dennis/Agence France-Presse/Getty Images

A.P. Moeller-Maersk on Thursday posted a sharp drop in first-quarter net profit as inventory corrections in Western economies sent shipping demand falling, pushing freight rates and volumes lower.

The Danish shipping giant said it expects the destocking effort, the result of an enormous inventory buildup last year that left retailers swamped with goods, to wind down by the end of the second quarter but that trade volumes are still contracting. 

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