Europe

Shipping giant Maersk pays for Russia’s withdrawal, but the book still records first-quarter earnings

Maersk, the world’s leading shipping company, completed its last freight transport at a Russian port on May 2, and is currently withdrawing all domestic and international services.

The decision by parent company AP Moller-Maersk to withdraw completely from the Russian market proves to be costly.

Maersk has suspended all new reservations between Russia and Belarus, while executing reservations that have already been accepted since the invasion, the company said.

However, the departure of the Danish company from Russia meant writing down all of its domestic terminal, transportation, and logistics assets.

As a result, Maersk’s terminal division will hit $ 485 million (€ 460 million) in operating profit for the first quarter.

In addition to the decision by individual shipping companies to stop moving goods to and from Russia, some countries have banned Russian vessels from landing in their ports.

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February 28, The United Kingdom was the first country to pass a law prohibiting vessels with Russian ties from entering British ports... the next day, Norway and the EU have announced that they are considering a similar move...

Norway announced at the end of last month Prohibiting Russian flagships from mooring in ports as part of new sanctions in response to Russia’s war in Ukraine..

However, fishing vessels are not subject to the ban and are allowed to dock normally for commercial and research purposes.

Russia’s turmoil has only exacerbated the transportation and logistics problems of the fishery industry.

Since the global COVID-19 pandemic began more than two years ago, the seafood industry has suffered from rising shipping prices and reduced shipping options as companies from all industries have fought for space on board. ..

Despite this week’s write-down, Danish container giant AP Moller-Maersk reported a record quarter as container shipping gravy trains continue to roll.

Listed liner giants saw revenues increase 55% to $ 19.3 billion (€ 18.3 billion), more than doubling EBITDA in the first quarter to $ 9.1 billion (€ 8.6 billion).

https://www.intrafish.com/shipping-logistics/shipping-giant-maersk-pays-price-for-russia-pull-out-but-still-books-record-first-quarter-earnings/2-1-1212866 Shipping giant Maersk pays for Russia’s withdrawal, but the book still records first-quarter earnings

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