Containers on a ship in Spain. — Reuters
COPENHAGEN: Shipping group Maersk said on Wednesday it expected global demand for container transport to grow, albeit at a slower pace in the next few quarters as market risks persist, and the Danish company's shares fell in early trading.
Maersk also ramped up its fleet renewal program, boosting its capital expenditure forecast for the 2024-2025 period by $1 billion to a range of $10 billion-$11 billion.
The company's share price fell 3.4%, taking its year-to-date decline to 12.3%.
Maersk also confirmed preliminary second-quarter earnings released last week, when it raised its outlook for the third time since May, citing higher freight rates due to the Red Sea crisis and solid container shipping demand.
Maersk, viewed as a barometer of world trade, said global container demand was estimated to have grown 5%-7% in the second quarter, boosted by a 10% jump in Chinese exports on the year, among other factors.
"Global container demand growth is expected to remain positive in coming quarters, but likely at a slower pace," the company said in its earnings report.
Maersk last week cautioned that prospects for the fourth quarter were uncertain.
"A healthy, albeit cooling labour market, and wage gains are expected to continue to support U.S. consumers. Declining consumer confidence and savings, however, are clouds at the horizon," Maersk said on Wednesday.
For the full year, it expects global container market volumes to increase by 4-6%.
Shipping disruptions caused by Houthi militants' attacks on vessels in the Red Sea were expected to last at least until the end of the year, Maersk has said.
The attacks have drawn U.S. and British retaliatory strikes and disrupted global trade, but Maersk and rivals have benefited from longer sailing times and soaring freight rates as ships are rerouted around Africa. - Reuters
