Maersk Group has cut its profit forecast for the year by $600million due to the difficult rate conditions in the container shipping sector.
The Danish shipping company said it was reducing its expected result for 2015 to $3.4billion from $4billion, which it forecast in its second quarter results.
The cut in profit expectations is due to the collapse in rates in the container shipping sector.
The full year profit outlook for Maersk Line has been cut from $2.2bn to around $1.6billion. The company said a $100 per FEU drop in average freight rates have a $500million negative impact, which a 100,000 FEU drop in volumes would cause a further $100million hit.
“Maersk Line has over the years taken steps to ensure a cost effective and resilient operation, but the current deterioration in the container shipping market is impacting also our business,” said CEO of Maersk Group, Nils Andersen.
In the third quarter Maersk Line’s average freight rate was $2,163 per FEU compared to $2,679 per FEU in the same period a year earlier.
Maersk will release its Q3 results on 6 November.