- A.P. Moller-Maersk has adjusted its container volume forecast for the year, now projecting a range from a 1% decline to a 4% increase, down from an earlier estimate of a 4% increase.
- The company’s revised forecast is influenced by the uncertain outcome of trade negotiations between the U.S. and China, particularly the impact of 145% tariffs on China.
- Maersk sees potential for volume growth in the second quarter, as shippers may frontload shipments to take advantage of a 90-day tariff pause.
A.P. Moller-Maersk, the Danish shipping giant, has revised its container volume outlook for the year, now predicting a range of a 1% decline to a 4% increase. This revision comes after the company had originally anticipated a 4% rise in volume. The shift is primarily due to the ongoing uncertainty regarding U.S.-China trade relations and the potential impact of tariffs.
Uncertainty Over U.S.-China Trade Deal Affects Forecast
Maersk’s Chief Executive, Vincent Clerc, pointed out that the 145% tariffs on China were not anticipated when the company previously provided its guidance. “Three months ago when we gave our guidance, the 145% tariffs on China was not what we thought was going to happen,” Clerc said. “We don’t know how this is going to play out.” This uncertainty about the trade deal’s resolution has prompted Maersk to take a more cautious stance in its forecast for the year.
Potential for Volume Growth in Q2
Despite the uncertainty, Maersk anticipates that container volume could grow in the second quarter. The company sees a possibility for this growth if shippers decide to frontload shipments and build up inventories to take advantage of a temporary 90-day pause on some tariffs. This may drive a boost in volume as businesses seek to mitigate future trade uncertainties.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: WSJ
