'Shipping Giant' Maersk Warns of Trade Demand Slowdown Despite Record Q3 Earnings

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Maersk, the world's largest container shipping company based in Denmark, recorded its highest-ever performance in the third quarter (July to September) of this year but warned that demand will slow down in the future.

According to CNBC and other sources on the 2nd (local time), Maersk announced in its Q3 earnings report that its EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $10.9 billion (approximately 15.4 trillion KRW). This represents a 60% increase compared to the same period last year and exceeded market expectations of $9.8 billion. Maersk maintained its EBITDA guidance for this year at $37 billion.

Maersk's container shipment volume is considered a barometer of global trade. CNBC reported that Maersk achieved record earnings in Q3 due to high ocean freight rates.

However, Søren Skou, Maersk's CEO, evaluated this year's exceptional performance as a result of rising ocean freight rates, which have already peaked. He forecasted that in the fourth quarter (October to December), demand will slow and freight rates will begin to normalize as supply chain disruptions ease.

He stated, "There are quite a few factors that could worsen the economy, including the Ukraine war, the European energy crisis, high inflation, and the outlook for a global recession. These will pressure consumers' purchasing power and ultimately affect global transportation and logistics demand."

Maersk revised its global container demand growth forecast for this year downward from the initial estimate of '-1 to 1%' to '-2 to -4%'.

This content was produced with the assistance of AI translation services.