TAIPEI (TVBS News) — Global shipping leader Maersk's decision to slash its staff by ten thousand triggered a downturn in shipping stock on Monday (Nov. 6), bucking the market trend.
Within the opening ten minutes, Evergreen Marine (2603) saw a 4% drop to NT$107.5; both Yang Ming Marine Transport (2609) and Wan Hai Lines (2615) faced turbulence, falling more than 2%.
After Maersk announced its sweeping layoffs last Friday, the company's stock price plummeted over 18%, according to a report by CNBC.
In the face of an economic downturn, the shipping industry is confronting a slew of challenges, including sluggish demand for cargo, falling freight rates, rising energy costs driving inflation, and geopolitical tension, all part of a "new normal," according to Maersk CEO Vincent Clerc.
Industry insiders noted that the shipping market is less robust than in the last two to three years, and the future is uncertain. For the shipping market, the coming year still represents a "supply-demand imbalance and a year full of challenges."