Alexa Maersk appoints new CEO as container-shipping market suffers
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Maersk appoints new CEO as container-shipping market suffers

Supply Chain Management

Maersk appoints new CEO as container-shipping market suffers

The Danish shipping and logistics firm, AP Moller-Maersk A/S, announced the appointment of Vincent Clerc as its new CEO as it faces a more challenging climate with growing macroeconomic concerns and declining freight prices.

Clerc has been with Maersk for 25 years and is currently the CEO of the firm's Ocean & Logistics division, according to the company. He will start serving as CEO on January 1, 2022.

Soren Skou, the firm's existing CEO, will retire after nearly 40 years with Maersk. Since taking over as CEO of Maersk in 2016, he has led the organisation as it transitioned from a container shipping and oil behemoth to an integrated logistics provider that runs cargo planes, ships, and port facilities.

Clerc is taking over following a time when Maersk reported strong earnings despite the COVID-19 outbreak thanks to high maritime freight rates. Following a record-breaking yearly profit of over $18 billion in 2021, Maersk announced over $24 billion in profits over the first nine months of 2022.

According to experts and company executives, the outlook for 2023 is uncertain as ship freight rates drop from their recent highs and major importers like Walmart Inc. and Target Corp. reduce orders and inventories as a result of changes in consumer spending.

In contrast to the projected 3.5% growth in 2022, the World Trade Organization anticipates a drop to 1% growth in 2023. Maersk, which operates over 7,000 ships, is regarded as a leading indicator of world trade.

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