Shipping giant Maersk cuts 10,000 jobs and warns about global trade

Shipping market 'set to remain weak until about 2026'

Maersk, which transports about one-sixth of the world’s containers, prepared for things to sour, seeking to lock in many of its big customers on long-term contracts back when rates where higher to ease the impact of freight-rate volatility.

Shares in Maersk, a bellwether for global trade, fell after saying it is cutting at least 10,000 jobs to shield its profitability in a shipping market that is set to remain weak until about 2026.

Maersk shares extended declines to more than 16% at one stage, the lowest in three years. “If you look at the order book and what is going to come over the next couple of years, I think we’re probably settling in for a very subdued and pressured environment for two to three years ahead,” chief executive Vincent Clerc said in an interview.