A.P. Moller-Maersk said it had canceled more than 90 sailings, or 3.5% of total shipping capacity, in the first three months of the year.
The company said the combination of a fall in demand and increased uncertainty about the future, following the emergence of the Covid-19 crisis, had led to suspensions and so-called "blanked sailings" in the first quarter.A truck transports a Maersk BV shipping container through the Port of Philadelphia in Philadelphia, Pennsylvania.A.P. Moller-Maersk said its idle fleet made up 9.4% of its total capacity at the end of the first quarter.
When asked whether idled fleet capacity could increase even further in the second quarter, Skou replied: "I would expect that if we actually see a further drop in demand then the idle fleet, for sure, will increase as we adjust the network size to ensure that we continue to have a high utilization and take out as much costs as we possibly can."
It comes as the company reported first-quarter revenue of $9.57 billion, largely in line with analyst expectations. It reported first-quarter revenue of $9.54 billion a year earlier. Meanwhile, earnings before interest, tax, depreciation, and amortization increased 23% to $1.52 billion over the first three months of the tear, slightly above company guidance provided in March.
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