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Freight rates fall: FedEx, Post, Maersk and Hapag Lloyd share prices fall, logistics industry under pressure

2022-09-16T10:18:48.607Z


The profit warning from the US logistics group Fedex caused the share price to fall the most in more than 40 years. As a result, Deutsche Post shares fell to an annual low. The container giants like Maersk and Hapag Lloyd are also coming under pressure. Investors are pricing in a global recession and falling freight rates.


Enlarge image

Less trade: The logistics company

Fedex

suffered the biggest price drop in 41 years.

The shares of

Post, UPS

and the shipping companies

Maersk and Hapag Lloyd

also collapse

Photo: Morry Gash/ AP

The shares of Deutsche Post fell on Friday after a profit warning from competitor Fedex with sales in the millions towards the low for the year.

Most recently, they fell by around 5 percent to EUR 33.65.

They are thus heading for the Xetra annual low of June at EUR 33.44.

US competitor Fedex had performed worse than expected in the most recent financial quarter and withdrew its profit forecast for the full year.

The absence of a "freight wave" after China reopened after Corona hit the leading aircargo provider in the Asia-Pacific region first, according to the analysts at JP Morgan.

Excluding special factors in fuel costs, the weakness at Fedex is even more glaring.

FedEx lost almost 20 percent of its market value following the profit warning.

It's the company's biggest price drop in more than 40 years.

The economic pessimists who expect a global recession see themselves confirmed by the figures from Fedex.

"It is very likely that we will hear similar statements from other companies in the coming days," warned AvaTrade expert Aslam.

The rival UPS lost seven percent.

European competitors could not escape this pull.

Container giants are also coming under pressure

Logistics groups such as Kuehne+Nagel or the shipping companies Hapag-Lloyd and Moeller Maersk, which had been trading at high prices in recent months, also came under pressure and lost up to eight percent.

FedEx's numbers don't translate one-to-one to these companies, said Saxo Bank analyst Ole Hansen.

However, they confirmed a downturn in the global economy and the threat of recession in America, China and Europe.

The shares of the Danish shipping company Moeller Maersk ended up at minus 4 percent, their lowest level since April 2021, those of Hapag Lloyd with a discount of more than 7 percent compared to October of the same year.

JPMorgan analyst Samuel Bland took on both companies and the Post in a recent study in the face of falling freight rates.

He now expects freight rates for Maersk and Hapag to be halved in 2023 compared to this year.

While he thinks Hapag shares are overvalued, he still has a positive view of Maersk from this point of view.

Source: spiegel

All news articles on 2022-09-16

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