Business

Ocean shipping shrinks as pandemic pummels retailers

Published

5 years ago

June 6, 2020

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

Business

BBM brings Vaseline, Hellmann’s, BRU Coffee to Maldives market

Published

3 hours ago

April 26, 2025

m@ldives

Bestbuy Maldives (BBM) extended their strong and decades old partnership with Unilever International, by adding to their brand portfolio – Vaseline, Hellmann’s, and BRU Coffee for the Maldivian market.

The collaboration was announced at a Business gathering held at the Manhattan Business Hotel, attended by over 300 trade partners from across Maldives.

With this partnership, BBM strengthens its retail offerings across the Maldives archipelago. Vaseline, a trusted name in skincare, and Hellmann’s, known globally for quality food products, will now be available through BBM’s distribution network.

“Vaseline is a name that generations trust for skin care. And Hellmann’s is a global icon in flavours. We’re proud to bring both to shelves across the Maldives and enrich everyday living for our customers,” said Muksith Hussain, Business Head – Retail.

In the hospitality sector, BBM introduces Bru Coffee as an addition to its HORECA (Hotel, Restaurant, Café) offerings. BRU Coffee provides a quality beverage option for hotels, resorts, and restaurants across the Maldives.

“BRU is one of the most loved coffee brands in the region. With this launch, we’re giving our hospitality partners a versatile product that delivers on both taste and reliability that can be consumed as a beverage and for the purpose of dessert preparation, something they can serve with confidence,” said Hisham Girsy, Business Head – HORECA.

The gathering served as a platform for BBM to engage with its valued trade partners and introduce these new brands to the market.

A.V.S Subrahmanyam, Chief Operating Officer at BBM, remarked: “BBM is built on relationships. This event reflects our commitment to not just introduce great products but to support, connect, and elevate our trade partners. We’re in this together, and the journey ahead is promising.”

As BBM continues to grow its portfolio and global partnerships, the focus remains clear delivering excellence, building trust, and shaping the future of trade in the Maldives.

Bestbuy Maldives (BBM) is a leading distribution company in the Maldives, connecting international brands with local businesses across retail and hospitality sectors. With a customer-focused approach and extensive distribution network, BBM continues to be a trusted partner in the Maldivian market.

Business

Redefining corporate retreats at Cinnamon Dhonveli Maldives

Published

6 days ago

April 20, 2025

m@ldives

MICE travel is undergoing a sea change—quite literally. No longer limited to traditional conference rooms and structured schedules, Meetings, Incentives, Conferences, and Events (MICE) are now about creating moments that inspire, rejuvenate, and bring teams closer together. At Cinnamon Dhonveli Maldives, the boundaries between business and leisure blur, offering a setting that transforms work into a pleasure.

Just a 20-minute speedboat ride from Malé, Cinnamon Dhonveli Maldives is the ideal destination for teams looking to escape the expected. Here, brainstorming sessions take place on powder-soft beaches, where the rhythmic waves set the pace for new ideas. Mornings might begin with yoga by the ocean, followed by strategy meetings in open-air pavilions. Afternoons invite collaborative workshops under swaying palms or team-building activities that include snorkelling, paddleboarding, or even a friendly beach volleyball match.

Dining at Cinnamon Dhonveli Maldives elevates every corporate event with fresh, sea-to-table cuisine, designed to fuel both body and mind. From curated group dinners under star-streaked skies to themed private banquets, every meal becomes an experience in itself. For those looking to celebrate milestones or reward top performers, the resort’s scenic locations offer the perfect backdrop for gala evenings or intimate cocktail gatherings.

Accommodation blends comfort with elegance, offering ocean-view suites and beachside retreats that allow participants to rest, recharge, and return with a fresh perspective. Despite the remote charm, connectivity is never an issue—seamless Wi-Fi and business-friendly amenities ensure that productivity doesn’t pause, even in paradise.

Cinnamon Dhonveli Maldives turns corporate travel into something memorable. Whether it’s a leadership retreat, a high-level conference, or an incentive escape, the resort offers a canvas for events that leave lasting impressions. Here, business goals are pursued in harmony with nature, creativity flows effortlessly, and the line between work and well-being fades.

Let your next MICE experience be more than a meeting—make it a journey worth sharing.

Business

Visit Maldives presents cultural, food festival to celebrate 2025

Published

4 months ago

December 31, 2024

m@ldives

Maldives Marketing and Public Relations Corporation (MMPRC/ Visit Maldives) has announced the ‘Maldives Culture and Food Festival’, a two-day extravaganza showcasing the Maldivian cuisine, local arts and craft, and entertainment.

The festival will take place at Central Park, Hulhumale’, on New Year’s Eve, December 31st, 2024, and continue into New Year’s Day, January 1st, 2025, offering a unique and immersive experience for locals and tourists alike.

This exciting initiative by MMPRC is a collaborative effort involving key partners such as the Ministry of Tourism (MOT), Housing Development Corporation (HDC), MyHulhumale’, Business Center Corporation (BCC), Male’ City Council, Waste Management Corporation Limited (WAMCO), the Maldives Police Service, Maldives National Defence Force (MNDF), Public Service Media (PSM), Maldives Airports Company Limited (MACL), Dhiraagu, Ooredoo, Manta Air, Maldivian, Ace Travels, and Gulf Air. It promises a dynamic programme filled with performances, activities, and food stalls. Attendees will have the opportunity to savour authentic Maldivian dishes, explore traditional arts and crafts, and witness captivating cultural performances.

On December 31st, the festivities will begin at 20:00 with doors opening to the public. A spectacular drone show will be held, depicting a tourist’s journey through the beautiful Maldives. The evening will continue with captivating cultural performances including Boduberu performances, and “Dhafi Negun”. A New Year’s Eve countdown will also take place, culminating in a dazzling fireworks display to welcome 2025.

The celebrations will continue on January 1st 2025 from 16:00 to 22:00, with the festival reopening and featuring food and arts and crafts stalls. A range of family-friendly activities will be available, including a police and fire truck showcase, a climbing wall, a bounce house, and a Transformers display. Additionally, the festival will feature energetic Boduberu performances and an exciting Roboman showcase.

“MMPRC is proud to present the first Maldives Culture and Food Festival,” said Ibrahim Shiuree, CEO and MD of MMPRC. “This event is a key initiative to celebrate the achievements of the Maldives in 2024 and to promote the diverse cultural heritage of the Maldives while providing a memorable experience for locals and visitors. We invite everyone to join us in celebrating the Maldivian spirit as we bid farewell to 2024 and welcome the new year.”