Watch: How Maersk is navigating the volatile shipping industry

Operating hundreds of vessels and numerous terminals, Maersk plays an important role in global logistics. In 2022, it posted record profits of $29.3 billion, fueled by the pandemic-era consumer demand and surging freight rates, though revenues have since returned to pre-pandemic levels.

The company now faces multiple challenges as many others in the industry: Red Sea vessel attacks by Houthi militants, Panama Canal drought restrictions, U.S. tariffs on Chinese goods and strikes.

Furthermore, the Red Sea crisis has forced Maersk to reroute vessels around Africa, raising costs and extending transit times. Meanwhile, Panama Canal restrictions have diverted some U.S.-bound cargo to trains.

According to the company, these disruptions are manageable in part due to overcapacity: the industry ordered many new vessels during the pandemic. However, once normal routes reopen, a glut of ships could drive freight rates down sharply.

In 2023, Mexico became the U.S.’s top trading partner, while North America imported 31 million containers and exported 14 million, many of them empty. Maersk expanded its presence in Mexico to support the U.S.-bound trade with more Chinese goods entering via southern ports.

Moreover, to strengthen logistic footprint, Maersk acquired several firms in 2022 including Pilot Freight Services, LF Logistics, and Senator International. It’s using Dubai as a transshipment hub to offset Red Sea delays and aims to capture a share of the e-commerce logistics market, projected to reach $819 billion by 2027.

Still, Maersk highlights that its logistics expansion brings risks. Limited routing flexibility may hinder its ability to match the reach of third-party logistics firms. Furthermore, Maersk plans to reach net-zero emissions by 2040, betting on methanol-fueled ships over LNG.

Its first methanol vessel launched back in 2024, cutting daily CO₂ emissions by 100 tons.