Maersk has cut its global container market outlook on tariff war as it sees global container volume market in the range of 1% decline to growth of 4% this year.
Maersk has lowered its outlook for the global container market due to escalating trade tensions, particularly between the United States and China. The shipping giant now expects global container volume growth to fall within a range of -1% to +4% for the year, a downgrade from its earlier projection of 4% growth.
According to Reuters, the group reported that container volumes between the U.S. and China plunged 30–40% in April, as the trade war between the world’s two largest economies intensified. Maersk has also warned that if the dispute continues, it could further shrink global shipping volumes.
Furthermore, the wider implications of the trade conflict are already being felt, with companies lowering sales forecasts and major economies scaling back growth expectation, all of which contribute to weakened demand for global shipping.
“Volumes between China and the U.S. dropped sharply during April, between 30% and 40% as tariffs went up. We were able to reallocate them to some other areas where there’s still strong demand” Vincent Clerc, CEO, Maersk, told journalists in Copenhagen.
