Coronavirus: Maersk Revenue Could Dip as Much as 30% – Sea-Intelligence

• Coronavirus: Maersk Revenue Could Dip as Much as 30% – Sea-Intelligence

Maersk revenue could decline as much as 30 percent as coronavirus bites, the Sea-Intelligence, a Copenhagen-based research firm, stated on Thursday.

The research firm said 30 percent of Maersk’s annual shipping volume comes from China, however, with China struggling with falling growth amid rising coronavirus outbreak, Maersk Line could struggle with substantial revenue fall in 2020.

The research firm further stated that the coronavirus outbreak could erase as much as $1.7 billion in revenue from the international shipping lines in 2020.

The report stated that the shipping sector is facing a downfall of 1.7 million TEU (twenty-foot equivalent unit is the inexact unit of a container), roughly 1.7 billion U.S. dollars in revenues for the carriers.

“The hope is that the situation will be brought under control in the near future and that we will get a V-shaped recovery,” the report said.

Even if the situation is brought under control, several containers were exported out of China empty, it “will be a challenge for carriers to repatriate them quickly enough to meet a sudden post-virus surge out of China.”

Andy Lane, an analyst at Sea-Intelligence, told CGTN Digital: “Without a large escalation of new infections, and as people get back to work, there should be noticeable improvements within a few weeks.”