A.P. Moeller-Maersk A/S’s container- shipping line, the world’s largest, reported an 11 percent increase in third-quarter profit after cost cuts countered a decline in freight rates.
Maersk Line, the container unit of A.P. Moeller-Maersk A/S, said annual growth in the industry may be as low as 3 percent, forcing operators to focus on cost cuts amid vessel overcapacity.
A.P. Moeller-Maersk A/S’s container- shipping line, the world’s largest, said fourth-quarter profit fell 6.6 percent as spending reductions weren’t able to counter a decline in freight rates.
Maersk Line, the world’s largest container carrier, said it will cut 9 percent of its shipping capacity on Asia to Europe, its largest trade route, in an effort to restore profitability.
A.P. Moeller-Maersk A/S climbed to an 18-month high after the company raised the earnings forecast for its container line, which almost doubled profit as lower fuel prices and costs offset falling freight rates.