Barclays sees a “dawn of a new annus horribilis” for the global container shipping industry, expecting the market to enter a period of “significant” losses in 2024-2025
The brokerage expects oversupply to widen further in 2024, which it says will create a challenging backdrop together with muted demand, forecasting losses at EBITDA level
“We do not expect a recovery in trade activity to be sufficient to absorb the oversupply that the industry has found itself in again,” it says
Barclays initiates Germany’s Hapag-Lloyd at “underweight”, saying its unit costs remain elevated while freight rates continue to decline; it reiterates “underweight” for Maersk and ZIM.
For Maersk, it cuts price target to DKK 8,250 from DKK 9,600, with a 24% downside to the share price on Dec. 1
The Danish shipping giant’s strategy in developing into an integrated container logistics operator carries “significant risks”, says the brokerage
Hapag-Lloyd shares are down around 3%, while Maersk slips 2.4%
Source: Reuters reported by Greta Rosen Fondahn
