How Maersk Is Navigating The Volatile Shipping Industry

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

[FrancisJohnson-hg]

Thank you very much for such a detailed review, now I know exactly what I need.

[youtubetim]

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.

[jitansharora]

Awesome Story. This should be a detailed 30-45 minutes documentary

[catwbongos]

You guys have to be trolling right now by also releasing this video

[prinnyexplodes]

CNBC got to collect that Maersk dollars. "Make my image better !! "

[anotherelvis]

Maersk also raised the stock dividend, so they don't reinvest all the excess profits.

[philippesails]

How bad is it that right after the SHanghai index is shown as doubling, the speaker says it is multiplied by 4!

[KenGray]

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.

[Davethreshold]

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.

[CaptRR]

They could start by not navigating into bridges.

[brianpambana]

1, 5 tonnes of goods are shipped by each person each year

[PeterParker-cvtb]

10:31 you overlooked the purchase of Martin Bencher !

[OwenAlekos-mhyw]

Is Maersk actually Samsung?
Dpworld stands for danish port world?

[AndrewLaFon]

they navigate the volatile shipping industry by hitting bridges

[doodskie]

Ah Maersk, making a bridge from ocean to ocean

Well sometimes destroying it 😂

[_Vancelvany_]

This freight ship lines are a huge factor on why our consumer goods are going up.
Maersk & others have increased the freight prices which is then passed on to us to maintain their OR...
What we're about to see is a shift in logistics, especially in NA, with the likes of Maersk doing M&A's and then investments in Mexico that is becoming the battleground for end-to-end logistics.
Honestly, the only takeaway here is until North American logistics stabilizes post-shift away from China and leverages fully the USMCA in trade, Maersk & the likes will continue to make bank & eat up all the smaller companies in every facet of the supply chain LOL

[tubby_]

Those ships are like cities and imagine working on em.

[laveshraj]

QRyde Public transportation software is a comprehensive digital solution designed to streamline and enhance the efficiency of public transit systems. This software typically includes a range of features tailored to meet the diverse needs of both passengers and transit operators.

[JohnDoe]

Maersk PR Team - Everyone's hating on us right now, we need something subtle to hide our 20$ billion profits.
CNBC - How about we put the word 'VOLATILE' in title and make you seem like the victim here ?

[go-eksg]

9:22 Why is the company name on the ship blurred out?