Danish shipping and oil giant, Moller-Maersk announced on Friday it was downgrading its full-year outlook for underlying profit to around $3.4 billion, a drop of some $600 million from its previous forecast.
Since the global financial crisis, the shipping industry has been burdened with overcapacity – following a surge in ship orders – causing a decline in freight rates.
While the $600m is "a big sum" in relation to turnover, Maersk's chief executive, Nils S. Andersen, remained confident they could weather the storm, on the hope freight rates picked up.
"It's a big sum but in relation to turnover it's actually not huge. The thing is we see very weak development in the trade between Asia and Europe, and because there's a lot of capacity coming into that trade, we've seen pressure on rates."
"What affects us more is the rates than the volume, but that trade looks particularly weak," Andersen told CNBC Friday.