Global demand for container ships will slow this year amid weakening consumer confidence and supply chain congestion, AP Moller-Maersk forecast.
The shipping and logistics lender – which is one of the world’s largest and is considered a “barometer” for global trade – said it loaded 7.4% fewer containers on its ships in the second quarter of this year compared to the same period last year. of 2021, prompting her to revise her forecasts for the entire year.
Maersk now expects container demand to fluctuate at the lower end of its range of between -1% and 1% in 2022 as rising inflation and energy prices weigh on the global economic outlook.
“Geopolitical uncertainty and higher inflation through higher energy prices continued to weigh on consumer sentiment and growth expectations,” the company said in a statement.
“In light of this, in 2022 global container demand is now expected to be at the lower end of the forecast range of -1% to +1%,” he added.
Maersk also warned that the slowdown is particularly sharp in Europe, where stocks are building up in ports and warehouses as consumer demand weakens.
As he explains, Russia’s war in Ukraine and the coronavirus lockdowns in China have exacerbated problems in supply chains.
“In Europe, supply chain congestion remains as retailers and producers hold containers at ports and warehouses due to weak final demand. The lockdown at China’s ports under the zero-tolerance policy of the coronavirus, as well as the fallout from the war in Ukraine also put pressure on key areas of the logistics network,” the company pointed out.
The company, however, confirmed analysts’ estimates for the second quarter, thanks to the surge in fares.
According to the company, supply chain congestion has pushed up freight rates worldwide, creating “exceptional conditions” for logistics activity, which has led the company to revise upwards its full-year profit estimates.
Maersk now expects operating profit of around $31 billion in 2022, up from $24 billion previously, and EBITDA of $37 billion, down from $30 billion previously.
In the second quarter, the company’s revenue rose 52% year over year to $21.7 billion, while operating profit more than doubled to $8.9 billion.
Source: Capital
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