Shipping company A.P. Moller-Maersk reported a significant drop in Q3 profit and sales, with at least 10,000 job cuts due to overcapacity, higher expenses, and weaker prices.

The company, which transports goods for Walmart and Nike, controls one-sixth of global container traffic.

Maersk’s demand decline was deeper than expected, with soft volume demands, prices back to historical levels, inflationary pressures, and increased geopolitical uncertainty.

The industry invested heavily in new container ships to accommodate demand and capitalize on record freight prices.

Maersk expects worldwide container volumes to fall by up to 2% this year due to sluggish consumer demand and post-pandemic destocking.