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MÆRSK

Russia seizes tugboats from Danish shipper Maersk

Russia has seized four tugboats belonging to a subsidiary of Danish shipping giant Maersk in Russia's far east, according to the group, which ceased operations in the country after Moscow's invasion of Ukraine.

Russia seizes tugboats from Danish shipper Maersk
Russia has seized four tugboats belonging to a subsidiary of Danish shipping giant Maersk. Illustration file photo: Jon Nazca/Reuters/Ritzau Scanpix

“On April 25th we were informed a local court has ordered the tugboats cannot leave Russia and also transferred custody of the tugboats to a third party,”
Maersk said in a statement on Wednesday.

The four vessels, owned by Maersk unit Svitzer, were operating on a long-term contract for the Sakhalin-2 oil and gas project in Russia’s far east.

Maersk tried unsuccessfully to divest the operation for a year before abandoning its efforts in mid-April and suspending its services.

But port authorities ordered the local crews and tugboats to continue to operate, before seizing the vessels, Maersk said.

“Since then, all (of) Svitzer’s employees in Russia have resigned, and Svitzer is no longer operating the four tugs,” Maersk said, describing the
situation as “untenable”.

“Efforts to resolve the matter are ongoing.”

In June, the Kremlin handed control of Sakhalin-2, in which Japanese companies hold stakes, to a Russian group.

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BUSINESS

Maersk profits plummet as Yemeni attacks close off Red Sea route

Danish shipping giant Maersk posted a huge drop in net profit for the first quarter on Thursday as Yemeni rebel attacks are forcing it to avoid the vital Red Sea route.

Maersk profits plummet as Yemeni attacks close off Red Sea route

Maersk reported a net profit of $177 million in the first three months of the year, a 13-fold drop from the same period last year. Turnover fell 13 percent to $12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet.

The company, however, raised its outlook for the full year, citing higher demand and increased rates and costs due to the supply chain disruptions in the Red Sea.

It now expects an underlying core profit ranging between $4 billion and $6 billion, up from $1 billion-$6 billion previously.

“We had a positive start to the year with a first quarter developing precisely as we expected,” Maersk chief executive Vincent Clerc said in a statement.

“Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched,” he said.

“This not only supported a recovery in the first quarter compared to the previous quarter, but also provide an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year.”

Iran-backed Huthi rebels, who control the Yemeni capital Sanaa and much of the country’s Red Sea coast, have launched dozens of attacks on ships since November, claiming solidarity with Palestinians caught up in the Israel-Hamas war.

The United States in December announced a maritime security initiative to protect Red Sea shipping from the attacks, which have forced commercial vessels to divert from the route that normally carries 12 percent of global trade.

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