Maersk Warns of Trade War Impact on Shipping Industry

In a stark warning, shipping giant A.P. Moller-Maersk stated that geopolitical tensions and trade wars could lead to a downturn in global container volumes this year, despite maintaining its profit outlook. The announcement comes as U.S.-imposed tariffs under President Trump continue to pressure international trade.

Maersk, a leading indicator in global trade, has revised its outlook for container volume growth, now expecting a range from a 1% decrease to a 4% increase. This stands in contrast to an earlier estimate of 4% growth. The company noted that the evolving trade policy and rising recession risks contribute to this uncertainty.

Besides, Maersk highlighted potential disruptions in the Red Sea due to ongoing conflicts. Despite President Trump's announcement to cease U.S. bombings in Yemen, attacks by Houthi militants persist. While no recent attacks have been reported, the situation continues to reroute shipping traffic, impacting sailing times and freight rates.

(With inputs from agencies.)