Maersk posts Q4 profit, 2024 outlook below expectations
CEO warns against expecting profit boost from Red Sea crisis
Oversupply of vessels to hit earnings in years to come
Shares in shipping giant plunge 17

COPENHAGEN, Feb 8 Reuters Maersk warned on Thursday that container shipping overcapacity would hit profits more than expected this year and that it didn39;t see a major boost from the jump in freight rates due to Red Sea disruptions, hammering its shares.

The warning, which also led the Danish shipping giant to suspend its share buyback programme, is in stark contrast with investors39; recent optimism about the sector.

Container shippers have been among the bestperforming stocks in Europe this year as the rerouting of vessels following attacks on shipping by Houthi militants in the Red Sea  a major trade route has boosted freight rates.

Maersk39;s shares were down 17 at 1321 GMT to levels last seen before the Red Sea disruptions started in December. Shares in rival HapagLloyd were around 11 lower.

Maersk, like other shippers, has been diverting vessels on a longer route around Africa, and some analysts had expected extended journey times and higher freight rates would outweigh a big increase in new container ships joining the market.

However, Maersk CEO Vincent Clerc told reporters that about twice as many new vessels were coming to market compared to the extra capacity required to send ships around Africa.

The pandemic boost to shipping profits resulted in…