How Maersk Is Navigating The Volatile Shipping Industry

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Published 2024-03-30

Each year, about 90% of world trade is transported by ship. While commodities like oil and grain make up 40% of that cargo, large steel containers, filled with appliances, smartphones, and couches, make up the remainder. Maersk, the world's second largest container shipping company, transports about one in five of those containers.

In addition to its fleet of over 670 vessels, the Danish-based carrier also runs one of the globe's largest port terminal businesses, with 64 terminals. Maersk logged record profits of $29.3 billion in 2022 due in part to pandemic-induced buying and higher freight rates.

But the company is flagging "high uncertainty" for the year ahead as a shift in consumer spending habits has brought revenue in line with pre-pandemic levels. Today, like its rivals, Maersk faces a range of challenges including attacks on vessels in the Red Sea, a drought at the Panama Canal, and the threat of higher tariffs related to a potential Trump presidency.

The company also chartered the vessel that crashed into the Francis Scott Key Bridge causing the structure to collapse and the Port of Baltimore to close.

CNBC explores how Maersk’s business has evolved and how it is navigating the many challenges the shipping industry faces today.

Chapters:
0:00 Introduction
2:44 Chapter 1: Global challenges
5:38 Chapter 2: The early days
8:43 Chapter 3: Pivoting to land

Produced by: Shawn Baldwin
Edited by: Nic Golden Henry
Supervising Producer: Jeniece Pettitt
Additional Reporting: Lori Ann LaRocco
Animation: Christina Locopo
Additional Footage: Getty Images, Maersk

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How Maersk Is Navigating The Volatile Shipping Industry

All Comments (21)

@youtubetim3577 28 days ago

These comments annoy me so bad, do people even listen or try to understand before commenting. Maersk chartered the ship meaning the other company owns ship, has crew on ship and hauling maersk cargo. In a trucking accident do you blame driver and trucking company or the people that own the boxes on the truck... my gosh, and the people saying ripping people off the shipping rates been so bad barely any profits last number of quarters, love how people expect every company to be a charity case except tech but perfectly fine having apple rip you off charging 1400 dollars for a phone that costs them 10 bucks.
@EcomCarl 6 days ago

Maersk's strategic diversification into air freight and last-mile delivery is a smart move in navigating the unpredictable waters of global trade. This holistic approach not only mitigates risks but also enhances their ability to adapt to rapidly changing market dynamics. 🚢
@catwbongos1416 28 days ago

You guys have to be trolling right now by also releasing this video
@mattygaga2013 21 days ago

9:22 the ship that is blurred out is NYK LINE and is the NYK LYRA. Not sure why CNBC blurred it out.
@zikolojii 28 days ago

Perfect timing
@user-xh8wi3ce1i 21 days ago

Very informative thanks
@michaelpatosa 28 days ago

Amazing!
@prinnyexplodes 28 days ago

CNBC got to collect that Maersk dollars. "Make my image better !! "
@momen78699 28 days ago

Good video keep it up
@OwenAlekos-mh7yw 28 days ago

Is Maersk actually Samsung? Dpworld stands for danish port world?
@SlightlyOddFilms 28 days ago

They are navigating through key supports to avoid collapse
@rolandalfonso6954 28 days ago

This was great. Taught me so much...
@doodskie999 28 days ago

Ah Maersk, making a bridge from ocean to ocean Well sometimes destroying it 😂
@laveshraj4300 13 days ago

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@craumm 28 days ago

"1.5 tonnes of goods are shipped by ship per person each year" WOW! I never ordered so much stuff from Amazon!
@KenGray 28 days ago

When NBC a story on shipping ocean going container ships, it always sounds like a commercial for Maersk for some reason. I would love to see what their advertising budget is like for nbc.
@PeterParker-cv2tb 28 days ago

10:31 you overlooked the purchase of Martin Bencher !
@ferdinandflora6713 21 days ago

Good job maersk.
@Dukaamoses 21 days ago

Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
@Davethreshold 28 days ago

All fine and well but tell them to check ALL of their ship engines and ships. It was an engine failure that caused the bridge disaster in Baltimore. Further, that same ship/engine flunked its inspection showing the same problem about 1-2 years ago.