Maersk forecasts long and deep contraction in global trade

Photo by Dominik Lückmann on Unsplash
Eltrak - Cat banner ad

Maersk warned of a deeper pullback in global shipping container demand, and now expects volumes to fall by as much as 4% versus a previous worst case scenario of 2.5%.

A.P. Moller-Maersk, a shipping conglomerate, issued a warning on Friday that the worldwide demand for ocean freight containers might see a sharper fall this year, owing to restrained economic expansion and a reduction in inventory by clients.

Stonetech banner ad
Stonetech banner ad

This global shipping giant, which operates approximately 17% of the market share in container shipping, has projected a dip in container volumes by up to 4%. The company’s earlier prediction was a decrease of no more than 2.5%.

“Maersk continue to expect muted global macro-economic growth given continued pressure from higher interest rates and potential recessionary risk in Europe and the United States,” the firm stated in a release.

In the previous year, Maersk reported unprecedented earnings, which were a result of elevated consumer demand, pandemic-induced port bottlenecks, and high freight rates. However, this year has seen a decline in freight rates due to a slowing down of the global economy.