World's Largest Container Line to Cut 2,000 Jobs in Logistics Restructure

14th October 2020

Maersk Line, the world's largest operator in container shipping is to cut 2,000 jobs. AFLOAT today tracked the line's Maersk Niamey of 2,592TEU (nominal) arrival at the Port of Cork following a trans-Atlantic route from Puerto Moin, Costa Rica in central America. Cork is part of Maersk's 'CRX - Southbound" service which connects Ireland with other Latin American destinations. The ship's next port of call is the UK at the London Container Terminal at Tilbury. Cork along with Dublin (above photo) and Belfast is also served by Maersk 'feeder' services to mainland Europe. Credit: Jehan Ashmore

Shipping container giant, Maersk revealed that it will make around 2,000 staff redundant due to changes to the organisation linked to the integration of Damco into its Ocean Logistics business and the removal of the separate Safmarine brand, which it announced last month.

In a trading update for its third-quarter (Q3) 2020 performance and 2020 full year guidance adjustment, in which the world’s largest container shipping group also reported better-than-anticipated volumes and freight rates in the past three months.

Maersk said it “expects to take a restructuring charge of around US$100m in Q3 2020 related to the redundancies of approximately 2,000 employees as the consequence of the changes to the organisation in Ocean and Logistics & Services announced on 1 September 2020”.

With parent group A.P. Moller-Maersk announcing its was upgrading its full-year guidance for 2020 based on preliminary Q3 figures and the current outlook for Q4, Søren Skou, CEO of A.P. Moller - Maersk said: “A.P. Moller - Maersk is on track to deliver a strong Q3 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services. Volumes have rebounded faster than expected, our cost have remained well under control, freight rates have increased due to strong demand and we are growing earnings rapidly in Logistics & Services.

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Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals.

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