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CEO of shipping giant Maersk says economy is “worse than 2008”
(TRUNEWS) CEO of Maersk Group Nils Anderson told the Financial Times Wednesday that the world’s economy is worse than in 2008.
Anderson’s comments came after Maersk Line, the companies most valuable subsidiary and the world’s largest container operator, reported $182 million in 4th quarter losses.
Maersk Line’s losses were part of a larger overarching profit loss, which saw Maersk Group, considered the world’s largest shipping company, report an 84% drop in profits for 2015, falling to $791 million from $5.02 billion in 2014.
In an interview with Financial Times (FT), Anderson commented on the negative data reports by saying “It is worse than in 2008. The oil price is as low as its lowest point in 2008-09 and has stayed there for a long time and doesn’t look like going up soon. Freight rates are lower.” Adding a positive he said “the external conditions are much worse but we [Maersk] are better prepared,” and “we [Maersk] are very strongly placed not only to get through this period but benefit from it. We are quite enthusiastic about it.”
ZeroHedge didn’t share Anderson’s optimism, and called for the public to “check back in six months to see how ‘enthusiastic’ Andersen is once he realizes the slump in global growth and trade is no longer cyclical but has in fact become structural and endemic.”
Maersk does however share the short-term outlook of a global economic slowdown, noting that though capacity in the container shipping industry increased 8 % in 2015, their analysis shows that global trade will only grow between 1% and 3% in 2016.
“Imports to Brazil, Europe, Russia, and Africa are all falling,” Andersen warned. He also said the company’s business is suffering from a “massive deterioration,” one which ZeroHedge predicts will likely lead to a parallel deterioration in Maersk’s share prices, which fell $43.72 (-3.55%) to $1187.34 upon the release of their quarterly and annual results.
TRUNEWS previously covered the systematic deterioration of global trade with an emphasis on the Baltic Dry Index (BDI), which is currently at an all time low of 291, a prime indicator which reaffirms the outlook that there will be no economic recovery in the near future.