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Analysis: Maersk could face USD 6 billion in write-downs

Container carries may need to write down their assets by as much as USD 35 billion, suggests Alphaliner. The analyst firm predicts that Maersk Line could end up accounting for USD 6 billion of that figure.

Photo: Maersk Line

Container carriers face a total USD 35 billion in write-downs on their assets. Of this, the industry's largest carrier, Maersk Line, represents around USD 6 billion, notes Alphaliner in its latest newsletter.

Japanese container carrier Nippon Yusen KK (NYK) announced last week that it will write down JPY 100 billion (USD 972 million) on its container vessels. This is the largest write-down ever in the container industry, writes Alphaliner, adding that the write-down represents around one fourth of the carrier's assets.

Aside from certain individual Japanese carriers, the majority of other carriers have not made significant write-downs on their container vessels despite that fact that current asset values are significantly below market price.

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