WORLD – The world’s biggest container shipping line Maersk has announced plans to cut 2,000 jobs as it streamlines to cut costs while also reporting that demand was recovering faster than expected and lifted its earnings outlook.

Maersk, which handles about one in five containers shipped worldwide said in a statement that though cargo volumes were still down on last year, they had picked up more than forecast after falling sharply at the height of the COVID-19 pandemic a few months ago.

A.P. Moller – Maersk is on track to deliver a strong quarter 3 with solid earnings growth across all our businesses in Ocean and Logistics & Services,” Chief Executive Soren Skou said in a statement.

“Volumes have rebounded faster than expected, our costs have remained well under control, freight rates have increased due to strong demand,” Skou said.

Volumes in Maersk’s Ocean-division declined by around 3 per cent in the third quarter compared to the same period last year, above an expected mid-single digit contraction, the company said.

The Danish company said it would cut 2,000 positions because of a major reorganisation announced last month where it seeks to integrate its seaborne container and in-land logistics businesses.

Maersk currently has around 80,000 employees.

The company expects restructuring costs of around $100 million in the third quarter related to the redundancies.

Maersk said it now expects full-year earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the range of $7.5 billion to $8.0 billion before restructuring and integration costs, up from an earlier range of $6.0 billion to $7.0 billion.

Preliminary results for the third quarter showed revenue at $9.9 billion, while EBITDA before restructuring and integration costs came in at $2.4 billion, Maersk said.

A.P. Møller – Mærsk A/S, also known as simply Maersk, is a Danish integrated shipping company, active in ocean and inland freight transportation and associated services such as supply chain management and port operation.

 Maersk has been the largest container ship and supply vessel operator in the world since 1996.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE