Maersk's profits before taxes and depreciation fell significantly to $839 million in the fourth quarter of 2023 (Reuters)
The Danish shipping company Maersk announced on Thursday that its profits declined by 87% on an annual basis, during the last quarter of 2023, due to the Red Sea crisis.
The company stated in a statement that its profits before taxes and depreciation amounted to $839 million in the last quarter of 2023, down from $6.54 billion on an annual basis.
Since last December, Maersk and major commercial shipping companies have suspended their crossing of the Red Sea, and replaced it with the Cape of Good Hope route in southern South Africa, adding approximately two additional weeks and higher expenses to reach their final destinations.
Maersk indicated pessimistic expectations about its profits during the current year 2024, due to the ongoing crisis in the Red Sea and a large supply of container ships.
She said, "We expect profits before taxes and depreciation between one billion and $6 billion during the current year, down from the $9.6 billion actually achieved in 2023."
The company added, "There is still a great deal of uncertainty surrounding the duration and level of disturbance in the Red Sea, as the indicative range reflects a period ranging from a quarter of a year to a full year."
The Houthis target, with missiles and drones, cargo ships in the Red Sea that are owned or operated by Israeli companies, or that transport goods to and from Israel, which later expanded to include American and British ships.
The group says that its operations come in solidarity with the Gaza Strip, which has been exposed to an Israeli war with American support since October 7, 2023.
A US-led coalition is launching raids that it says target Houthi sites in various regions of Yemen, in response to its attacks in the Red Sea, which has been met with a response from the group from time to time.
Source: Agencies