{"id":17602,"date":"2016-02-10T12:57:59","date_gmt":"2016-02-10T17:57:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17602"},"modified":"2016-02-10T12:57:59","modified_gmt":"2016-02-10T17:57:59","slug":"its-worse-than-2008-ceo-of-worlds-largest-shipping-company-delivers-dire-assessment-of-global-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17602","title":{"rendered":"“It’s Worse Than 2008”: CEO Of World’s Largest Shipping Company Delivers Dire Assessment Of Global Economy"},"content":{"rendered":"

“It’s Worse Than 2008”: CEO Of World’s Largest Shipping Company Delivers Dire Assessment Of Global Economy<\/a><\/h3>\n

Earlier today, we highlighted the rather abysmal results reported by Maersk, the world\u2019s largest shipping company.<\/p>\n

To the extent the conglomerate is a bellwether for global growth and trade, things are looking pretty grim. Maersk Line – the company’s golden goose and the world’s largest container operator – racked up $182 million in red ink last quarter and the outlook for 2016 isn’t pretty either. The company now sees demand for seaborne container transportation rising a meager 1-3% for the year.<\/p>\n

\u201cThe demand for transportation of goods was significantly lower than expected, especially in the emerging markets as well as the Group\u2019s key Europe trades, where the impact was further accelerated by de-stocking of the high inventory levels,\u201d the company said, in its annual report.<\/p>\n

Just how bad have things gotten amid the global deflationary supply glut you ask?<\/p>\n

Worse than 2008 according to CEO Nils Andersen who last November warned that \u201cthe world\u2019s economy is growing at a slower pace than the International Monetary Fund and other large forecasters are predicting.\u201d Here\u2019s what Andersen told FT:<\/p>\n

\u201cIt 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\u2019t look like going up soon. Freight rates are lower. The external conditions are much worse but we are better prepared.\u201d
\nAs FT goes on to note, \u201ccapacity in the container shipping industry increased 8 per cent in 2015\u201d despite the fact that Maersk only sees global trade growing at between 1% and 3% in 2016.<\/p>\n

Imports to Brazil, Europe, Russia, and Africa are all falling, Andersen warned. The company’s business, Andersen says, is suffering from a “massive deterioration.” That, you can bet, will likely lead to a “massive deterioration” in Maersk’s shares, which took a substantial hit on Wednesday in the wake of the quarterly and annual results.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

“It’s Worse Than 2008”: CEO Of World’s Largest Shipping Company Delivers Dire Assessment Of Global Economy Earlier today, we highlighted the rather abysmal results reported by Maersk, the world\u2019s largest shipping company. To the extent the conglomerate is a bellwether for global growth and trade, things are looking pretty grim. Maersk Line – the company’s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[90,12314,366,3761,12312,434,12313,4856,805,4318],"class_list":["post-17602","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brazil","tag-containerized-shipping","tag-global-economy","tag-global-trade","tag-golden-goose","tag-international-monetary-fund","tag-maersk","tag-shipping","tag-trade","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17602"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17602\/revisions"}],"predecessor-version":[{"id":17603,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17602\/revisions\/17603"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}