Maersk Predicts Slight Global Slowdown in Container Demand

Shipping giant Maersk said Tuesday (April 26) that the container market could normalize in the second half of 2022, though it did raise full-year guidance due to high rates for container freights.

As Reuters reported, this forecast from the Danish company — one of the largest of its kind and often seen as a bellwether for world trade — could be foreboding news for the world economy.

In a trading update Tuesday, Maersk reported that container volumes fell 7% between January and March, and expects growth in worldwide container demand to slow to between -1% and 1% this year, compared to its earlier forecast that suggested growth of 2% to 4%.

Also on Tuesday, Swiss logistics group Kuehne & Nagel reported a drop in container volumes for the first three months of 2022, Reuters said.

Maersk revised its guidance for the full year upward, with underlying earnings before interest, tax, depreciation, and amortization (EBITDA) projected to be around $30 billion versus the $24 billion once expected and $28.7 billion forecast by analysts in a poll Maersk commissioned.

Read more: Container Shipping Rates Tank Amid US Inflation, Shanghai’s Pandemic Lockdown

Earlier this month, data from the World Container Index (WCI), a resource for independent container market data, showed the U.S. and other developed world consumers spending less on goods due to factors such as inflation and the end of stimulus funds.

The WCI fell 16% between January and mid-April, with major routes from Shanghai to Los Angeles and Shanghai to New York slipping 17% and 16%, respectively.

Learn more: Maersk B2B Logistics Unit Targets the $600B US eCommerce Market

As PYMNTS reported last month, Maersk’s E-Commerce Logistics business unit is getting into business in the U.S.

The company has nine e-fulfillment centers that could deliver to three-quarters of the U.S. population within 24 hours, and 95% within 48 hours.

Maersk recently completed a series of acquisitions to incorporate eCommerce, including Visible Supply Chain Management, a Salt Lake City, Utah, fulfillment company, as well as two eCommerce companies from Europe, B2C Europe and HUUB and Asia, LF Logistics.