Trucking companies are at risk of going under as shipping rates decline. FOX Business’ Jeff Flock with more.
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COPENHAGEN, Denmark — The world’s biggest shipping company, Denmark’s A.P. Moller-Maersk, said Wednesday that it expects its transport volumes to drop by up to 25% in the second quarter as the world economy slides toward recession.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMKBY | A.P. MOELLER-MAERSK A/S | 4.7 | -0.04 | -0.84% |
CEO Soeren Skou said that the group was “strongly positioned to weather the storm” but that the COVID-19 crisis had had “a significant impact” on its activities.
UK ECONOMY SHRINKS 5.8% IN MARCHSoeren Skou
A container ship is docked at Maher Terminals in Elizabeth, N.J., Monday, May 11, 2020. (AP Photo/Mark Lennihan)
The group presented its first quarter results, which showed revenue edged down to $9.6 billion from $9.5 billion for the same period last year. It booked a profit of $209 million, up from a loss of $656 million.
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In a statement, the group said its full-year outlook contained “high uncertainties,” and the global container demand “is expected to contract in 2020 due to COVID-19.” It previously was for growth of 1-3%.
