Business
Ocean shipping shrinks as pandemic pummels retailers
LONDON/LOS ANGELES/MADRID (Reuters) – The $1 trillion container shipping industry is in a slowdown. Literally.
Some shipping lines, whose retail customers are being hammered by the coronavirus pandemic, are reducing sailing speeds and taking longer routes around Africa, avoiding Suez canal passage fees, according to the companies and ship-tracking specialists.
Many are also cutting down the number of voyages and providing short-term storage for clients as the industry, which includes heavyweights like Maersk (MAERSKb.CO), MSC and Hapag-Lloyd (HLAG.DE), faces its biggest downturn since the 2008 financial crisis.
The new tactics not only save on costs, but also help adapt to the needs of cash-crunched retailers – among their biggest customers – who are stuck with huge inventory surpluses thanks to COVID-19 store closures and a collapse in consumer demand.
Slower shipping times also means importers can delay payments made on delivery.
From sportswear maker Puma (PUMG.DE) to mall stalwart Gap (GPS.N), many retailers have been forced to reduce or slow down shipments of new merchandise. Civil unrest in the United States has compounded their problems by further clouding the prospect for a recovery in the world’s biggest retail sales market.
Puma’s Chief Executive Bjorn Gulden, for example, said it was managing some of its excess inventory by stowing it on slow-going ships as stores in the United States and Europe tentatively reopen.
However, at the same time, the shipping slowdown has created headaches for those retailers, from Walmart (WMT.N) and Amazon (AMZN.O) to shoe seller Rothy’s, who have never stopped selling products to homebound consumers, ranging from books and shoes to exercise equipment, much of it sold online.
Now those retailers are fighting for space on the fewer, faster-moving ships on the high seas.
“What we are seeing is quite a mixed situation from cargo owners, some of which are resuming normal shipment of their cargoes, others are requesting routings via longer transit times,” said Marcus Leaver, chief operating officer of sea freight at Hellmann Worldwide Logistics, which organises shipments for companies such as retailers.
A lack of space on ships is leading to more “rollovers”, where containers are bumped from packed vessels to later ones, like passengers on oversold flights, according to importers.
Spanish retailer Mango, which has continued to sell online during the pandemic, told Reuters it was seeing an increase in service cancellations by shipping companies, which caused instability and “space problems”.
It added that 99% of its imports from Asia were now coming by sea because air costs had gone up due to a lack of flights and the priority given to medical equipment.
‘A lot of trouble’
The stakes are high for the container industry. Retail goods such as clothes, luggage and furniture represent about 15% of shipped volumes, a Reuters analysis of industry data shows.
Soren Skou, CEO of Maersk, the world’s biggest container shipping group, said many of its big customers were retailers or suppliers to retailers.
“There are some traditional retailers in a lot of trouble and, as you know, some have started to go bankrupt,” Skou said last month. “Some customers ask us to delay shipments and we have found extra storage and warehouse facilities for them.”
Shereen Zarkani, Maersk’s global head of sales, told Reuters: “One customer told us: If you make my container go around the world a couple of times that would be good.”
The volume of apparel arriving in the United States by ship dropped nearly 20% in January-May versus the same period last year, and reached 379,910 TEUs (20-foot equivalent container units), data from logistics technology company Descartes showed.
Furniture volumes fell over 12% in the same period, while luggage dropped over 34%.
The first blow landed when the novel coronavirus forced China to shutter factories in February, cutting off supplies of apparel, electronics and other retail goods to the world. The second came when stores in Europe and the United States closed, leading companies like Topshop owner Arcadia Group, Gap and off-price retailers Marshalls and TJ Maxx (TJX.N) to cancel orders.
“When you look at the East-West trades we are right now looking at 15% to 20% (taken out) across the industry,” Rolf Habben Jansen, CEO of German-based Hapag-Lloyd, said last month pointing to the fall in capacity in recent weeks.
Outlook: Stormy
There does not appear to be any let-up in sight for container shipping companies as their retail clients could still be feeling acute financial pain in July, when they begin placing orders for holiday and winter merchandise.
Jay Foreman, CEO of Florida-based toy supplier Basic Fun, which sells to retailers including Walmart and Target Corp (TGT.N), said he expected a 20% decrease in business this year.
Indeed, the outlook for retail is dim: Euromonitor forecasts that U.S. retail sales will fall more than 6% this year.
James Conroy, CEO of California-based clothing company Boot Barn Holdings (BOOT.N), told analysts it faced “several headwinds”.
“High unemployment, extremely depressed oil prices and a shift toward online shopping will present challenges for us as we progress through the next six to 12 months,” he said.
Reporting and photo: Reuters
Hotelier Maldives has announced Bestbuy Maldives (BBM) as the Title Partner of Hotelier Maldives Awards 2026 under a multi-year agreement, reaffirming one of the longest-standing partnerships behind the publication’s flagship hospitality recognition platform.
The 2026 edition marks the third consecutive year that BBM has served as Title Partner of Hotelier Maldives Awards, having supported the event in the same capacity since its launch in 2024. BBM has also backed Hotelier Maldives’ second flagship event, GM Forum, every year since 2023, with 2026 set to mark its fourth year as a Silver Partner of the forum.
The continued partnership reflects a shared commitment to recognising the people behind the Maldives’ tourism industry while supporting platforms that encourage industry dialogue, leadership and professional development.
Hotelier Maldives Awards 2026 entered its public voting phase on 15 March 2026, with voting set to remain open for one month. Winners will be announced at the gala ceremony on 26 April 2026 at NIVA Kurumba Maldives.
Commenting on the partnership, Ali Naafiz, Editor of Hotelier Maldives, said: “BBM has been a valued partner of Hotelier Maldives Awards since the very beginning, and we are pleased to formalise this continued support through a multi-year agreement. Their decision to return as Title Partner for a third consecutive year reflects not only the strength of our relationship, but also a shared belief in the importance of recognising the people who drive excellence across the Maldives’ hospitality industry.
“BBM has also consistently supported GM Forum over the years, making them one of the most committed partners across our event platforms. We are proud to continue working together as we strengthen both Hotelier Maldives Awards and GM Forum as annual fixtures for the industry.”
AVS Subrahmanyam, Chief Operating Officer of BBM, said: “At BBM, we have always believed that a strong hospitality industry is built by strong people, and Hotelier Maldives Awards provides an important national platform to recognise the professionals whose work often takes place behind the scenes. We are pleased to continue as Title Partner of the awards under this multi-year agreement, while also extending our support to GM Forum for a fourth consecutive year.
“As a company that has grown alongside the Maldives’ hospitality sector, we value opportunities that celebrate talent, encourage professional pride and contribute to the long-term development of the industry. Our continued partnership with Hotelier Maldives reflects that commitment.”
Bestbuy Maldives is one of the country’s leading importers and distributors, serving the hospitality, HORECA and retail sectors with a broad portfolio of international brands. The company positions itself as a partner to the Maldivian hospitality industry, supplying products from around the world across key business verticals including resorts, foodservice and retail.
Hotelier Maldives Awards continues to recognise the contributions of resort-based hospitality professionals across the Maldives, highlighting both individual excellence and team performance. The awards programme remains the country’s only dedicated recognition platform focused on professionals working in resort operations. The current public voting round allows industry stakeholders, colleagues, guests and the wider public to take part in selecting this year’s winners.
The growing list of confirmed partners for Hotelier Maldives Awards 2026 includes Bestbuy Maldives (BBM) as Title Partner, Dhiraagu as Platinum Partner, Storm Events as Organising Partner, NIVA, Kurumba Maldives as Host Partner, Souvenir Marine as Transport Partner, ALIA as Associate Sponsor, and Lightsout Studios as Associate Partner. More partners and sponsors will be announced soon.
Dusit International, one of Thailand’s leading hotel and property development companies, has announced the opening of Feydhoo Hall, a landmark event venue at dusitD2 Feydhoo Maldives, redefining the possibilities for meetings, celebrations, and destination events in the Maldives.
Designed to bring scale, flexibility, and creativity to island gatherings, Feydhoo Hall represents a bold step forward in positioning the Maldives as a dynamic destination for conferences, weddings, and large-scale social occasions.
Feydhoo Hall offers a versatile event complex designed to accommodate a wide range of gatherings, from corporate meetings and conferences to weddings and social celebrations.
At its core is the 390 sqm Main Hall, capable of hosting:
- Up to 300 guests in theatre-style setup
- Up to 240 guests for dining and banquet-style events
- Up to 200 guests for cocktail-style receptions
- Up to 144 guests in cluster-round configuration
Enhancing the flexibility of the venue are additional dedicated spaces, including:
- A 110 sqm Veranda Terrace, ideal for welcome receptions, breakout sessions, and pre-event gatherings, accommodating up to 100 guests for cocktail-style events.
- A spacious 1,000 sqm Lawn Space, perfect for large-scale outdoor celebrations, destination weddings, and open-air events, accommodating up to 400 guests for cocktail receptions and up to 350 guests for dining setups.
- The 55 sqm Ekugai Meeting Room, designed for smaller meetings and executive sessions, accommodating up to 30 guests in theatre or dining setup and 24 guests in cluster-round format.
Together, these integrated spaces create a seamless indoor-outdoor event experience, allowing planners to design dynamic and personalised event journeys.
True to the dusitD2 brand’s lifestyle-driven philosophy, Feydhoo Hall introduces a fresh approach to meetings and events — where productivity meets creativity in an inspiring island setting.
The venue offers flexible meeting formats designed to suit different event needs, including:
- Half-Day Meeting Package (4 hours) — ideal for focused sessions, executive meetings, and creative workshops.
- Full-Day Meeting Package (8 hours) — designed for immersive conferences, extended workshops, and large-scale corporate gatherings.
These thoughtfully structured packages provide planners with the flexibility to create impactful and seamless experiences, whether hosting intimate strategy sessions or dynamic full-day events.
Located just seven minutes by speedboat from Velana International Airport, dusitD2 Feydhoo Maldives combines accessibility with vibrant lifestyle energy, offering event planners and guests a rare balance between convenience and tropical escape.
With the introduction of Feydhoo Hall, the resort strengthens its position as a versatile destination — not only for leisure travellers but also for international conferences, creative retreats, luxury weddings, and large-scale social celebrations seeking something refreshingly different in the Maldives.
Bestbuy Maldives (BBM) opened a new wholesale store in Hulhumalé Phase 2 on Monday.
The outlet is located on the ground floor of Lot 20286, Nirolhu Magu, and is intended to improve access to BBM’s imported goods for residents of Hulhumalé Phase 2 and for businesses operating in the area.
According to the company, the opening forms part of its plan to expand services closer to customers in line with population growth in Hulhumalé.
With the opening of the new store, BBM’s full range of imported and distributed products will be available at the Hulhumalé Phase 2 location. These include consumer goods from international brands such as Lifebuoy, Vaseline and Unilever.
The store will also stock wholesale food products from brands including Daily, Cavin’s and Redman.
BBM has supplied goods to resorts, hotels and retail outlets across the Maldives for several years.
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