Shipping giant Maersk has issued a warning about the prospects for global trade as it cut its outlook for the number of containers it will carry.
The Danish shipping and logistics firm, often viewed as a bellwether for the world economy, said there are no substantial signs that volumes will recover this year as it said global container trade will probably contract as much as 4% in 2023.
The prediction compared to a previous worst case scenario forecast of minus 2.5%.
The firm, along with the rest of the shipping industry, is facing an abrupt readjustment after generating record profits in 2021 and 2022 thanks to a rise in demand for consumer goods during the pandemic.
In a statement, the company said: “The inventory correction observed since the fourth quarter of 2022 appears to be prolonged and is now expected to last through year end.
“Overall, the environment for container trade and logistics services remains challenging.
“Currently there is no sign of a substantial rebound in volumes in the second half of the year.”
It did, however, raise its full-year earnings guidance after a stronger-than-expected first half of the year but warned that the rest of 2023 would be tougher.
Revenue fell by 40% to $13 billion in the second quarter while earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 72% to $ 2.9 billion, ahead of analysts’ forecasts of $ 2.4 billion. Maersk lifted its full-year EBITDA forecast from $ 8-11 billion to $9.5-11 billion.