Maersk cuts global container market outlook on tariff war

[COPENHAGEN] Danish container giant AP Moller-Maersk has lowered its forecast for the global transport market that’s been rattled by US President Donald Trump’s trade war.

Maersk sees global container volume market in the range of 1 per cent decline to growth of 4 per cent this year, according to a statement on Thursday (May 8), citing “increased macroeconomic and geopolitical uncertainty”. The forecast compares with growth of “around 4 per cent” predicted back in February.

Maersk, which controls about 14 per cent of the world’s container fleet and operates 60 ports, is among the global companies hit by Trump’s protectionist shift, which is upending decades of progress in free trade. Still, the company has also said that it expects a transport boost in Europe as the continent, led by Germany, speeds up investments, including in defence.

Container-line profits have been boosted by the ongoing Red Sea crisis, which has now lasted almost 18 months, because companies taking the longer diversion route south of Africa eases some of the vessel overcapacity in the industry.

The disruption in the Red Sea is expected to continue throughout the rest of the year, the Danish company said on Thursday. In February, Maersk had indicated that would mean hitting the high end of its 2025 profit outlook.

Maersk, a bellwether for global trade, said its net profit surged sixfold in the first quarter and maintained its full-year earnings outlook despite Trump’s tariffs onslaught.

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Maersk eyes 4% market growth in 2025, uncertainty over tariffs and Red Sea

Maersk said its profit after tax reached US$1.2 billion between January and March – before Trump’s sweeping tariffs on imports took effect in April.

Revenue rose 7.8 per cent to US$13.2 billion on the back of higher freight prices.

“With trade tensions flaring up and uncertainty on the rise, global supply chains are once again in the spotlight,” said Maersk chief executive Vincent Clerc. BLOOMBERG, AFP