The Elly Maersk
A.P. Moeller-Maersk A/S will cut another US$500 million in costs this year after the owner of the world’s biggest container line posted its first loss since at least World War II. “We’re not cutting just to survive but to become more competitive,” the CEO said in today’s company newsletter. “I hope we will be able to make an interesting acquisition or buy some distressed assets.”
The shipping market contracted in 2009 for the first time since containerization became globalized in the 1970s, while capacity grew as new ships, ordered during boom years, came into service. The additional cuts will raise to US$2.5 billion the total amount of spending reductions that Maersk has made to right itself after posting a US$1.29 billion net loss in 2009.
