economy
Reopening strait of Hormuz would have limited impact on cargo flows, says Maersk
CEO of Danish shipping group says increased costs due to higher fuel bills passed on to customers
TL;DR
- Maersk CEO Vincent Clerc believes reopening the Strait of Hormuz will have a limited impact on cargo flows.
- The company's fuel costs have nearly doubled since the conflict began, adding up to $500 million per month, but these costs have been passed to customers via higher freight rates.
- The Strait of Hormuz, crucial for global oil and gas transport, has been effectively closed since late February, contributing to rising energy prices.
- Despite ongoing concerns about safe passage and elevated fuel costs, Maersk successfully mitigated the financial impact of cost increases.
- Maersk maintains its profit guidance for the year, expecting container demand to grow by 2% to 4%, though its shares fell 7% on Thursday.
- Over 800 ships and approximately 20,000 crew members are stranded west of the strait.