Maersk's latest report suggests that the world economy is slowing down, says Russ Mould, an investment director at AJ Bell. Maersk is one of the biggest shipping companies in the world, so people look at it to see how the world's economy is doing. The company's profits before tax fell to $691m in the three months to September, compared to $9.1bn in the same time last year. Sales also fell from $22.7bn to $12.1bn. The cost of shipping has gone down a lot in the past six months, which has helped some stores lower their prices.
The shipping industry has been hurt by having too much capacity, which has made prices fall and led to job cuts. Maersk's job cuts will make its worldwide workforce less than 100,000. The company has not said where or what types of jobs will be affected. It warned that a slower world economy, financial stress, and tensions between countries could hurt its income and profits in the last part of this year and in 2024.
Original news source: Maersk cuts 10,000 jobs as shipping demand falls (BBC)
π Vocabulary:
Group or Classroom Activities
Warm-up Activities:
– News Summary
Instructions: Have the students read the article and then summarize the main points in their own words. They can take turns sharing their summaries with a partner or small group.
– Opinion Poll
Instructions: Divide the class into small groups. Have each group discuss and share their opinions on the following question: "Do you think the job cuts at Maersk are a result of the pandemic? Why or why not?" After the discussion, each group can present their opinions to the whole class.
– Vocabulary Pictionary
Instructions: Write down key vocabulary words from the article on separate pieces of paper. Divide the class into pairs or small groups. One student from each group will draw a word from the pile and try to draw a picture that represents the word without using any letters or numbers. The other students in the group will try to guess the word based on the drawing.
– Pros and Cons
Instructions: Have the students make a list of the pros and cons of the job cuts at Maersk. They can do this individually or in pairs. Afterward, have a class discussion where students share their lists and discuss their reasoning.
– Future Predictions
Instructions: Ask the students to think about and discuss the future of the shipping industry. Will it recover from the current challenges? What changes might occur? Have them share their predictions with a partner or small group, and then have a class discussion where students can present their predictions to the whole class.
π€ Comprehension Questions:
Because there is less demand for shipping and the rates are lower.
Their profits fell by 92%.
Because prices were high and interest rates were rising.
Because prices are high and interest rates are rising, so people are spending less.
Maersk thinks cutting jobs will save the company Β£600m next year.
Because Maersk is one of the biggest shipping companies in the world, so its performance reflects the state of the global economy.
The shipping industry has been hurt because there is too much capacity, which has caused prices to fall and led to job cuts.
π§βοΈ Listen and Fill in the Gaps:
The shipping company, AP Moller-, is going to cut 3,500 jobs because there is less demand for shipping and the are lower. This is after the company already cut 6,500 jobs earlier in the . Maersk, which ships goods for big stores like Nike, said its profits fell by 92% in its most recent report. The cost of shipping goods went up a lot in the first year of the pandemic, but now, because prices are high and interest rates are rising, people are spending and there is less demand. Maersk thinks that cutting these jobs will save the Β£600m next year. Maersk's latest report suggests that the world economy is slowing down, says Russ Mould, an investment director at AJ . Maersk is one of the biggest shipping companies in the world, so people look at it to see how the world's economy is doing. The company's profits before tax fell to $691m in the three to , compared to $9.1bn in the same time year. Sales also fell from $22.7bn to $12.1bn. The cost of shipping has gone down a lot in the past six months, which has helped some stores lower their prices. The shipping industry has been hurt by having too much capacity, which has made prices fall and led to job cuts. Maersk's job cuts will make its worldwide workforce less than 100,000. The company has not where or what types of will be affected. It warned that a slower world economy, financial , and tensions between countries could hurt its income and profits in the last part of this year and in 2024.
π¬ Discussion Questions:
1. What is a shipping company?
2. How would you feel if you lost your job?
3. Do you think it's important for big stores to ship their goods around the world? Why or why not?
4. Do you like buying things online? Why or why not?
5. What do you think might happen if there is less demand for shipping?
6. How do you think the pandemic affected the cost of shipping goods?
7. What do you think it means when the article says the world economy is slowing down?
8. Do you think it's fair for companies to cut jobs to save money? Why or why not?
9. Why do you think the shipping industry has too much capacity?
10. How do you think tensions between countries could hurt a shipping company's income and profits?
11. Have you ever seen a big shipping container? What did it look like?
12. Do you think the shipping industry will recover from this downturn? Why or why not?
Individual Activities
ππ Vocabulary Meanings:
Click a dot next to a word, then click the dot next to its meaning to draw a line connecting them.
Words
Meanings
π‘ Multiple Choice Questions:
π΅οΈ True or False Questions:
π Write a Summary:
Write a summary of this news article in two sentences.
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