Maersk Cuts Global Transport Forecast Amid Trade Tensions

The Danish container giant AP Møller-Mærsk is lowering its forecast for transportation with reference to the Trump administration's trade war.

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Maersk Cuts Global Transport Forecast Amid Trade Tensions
Photo: Mads Claus Rasmussen Ritzau/Scanpix/AP/TT

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According to the company's latest estimates, there is a risk that the global transport market will shrink by 1 percent, while in a best-case scenario it can grow by 4 percent.

Previously, the prognosis was for a growth of around 4 percent.

In April, container volumes in trade between the USA and China fell by 30-40 percent in both directions, according to Maersk's CEO Vincent Clerc.

Maersk controls around 14 percent of the global container market and has traffic at 60 ports around the world.

Besides the trade war initiated by the President of the USA, Donald Trump, Maersk is counting on continued disruptions to civilian shipping traffic in the Red Sea during the year, which can impact Maersk's results. Despite this, the company is counting on making an operating profit according to the EBITDA measure of 6-9 billion dollars this year.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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