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Shipping giant Maersk warned that it won’t be plain sailing for global trade

Maersk Warned Of Murky Waters Ahead

**Why should I care?**

***Zooming in:*** *Not quite in the same boat.*

Not everyone in the shipping industry is on the same page. Consider Maersk’s rival MSC, which used its hefty profit from the last few boom years to launch a fleet of new vessels. But that move might be a case of bad timing: with demand sinking, an oversupply could further depress shipping rates. Meanwhile, Maersk has been diversifying by building up its land-based logistics. But even this strategy is facing headwinds: Maersk saw its first revenue drop in years for the segment, and is now planning job and capacity cuts.

***The bigger picture:*** *A rising tide.*

Given Maersk ships about a sixth of all containers worldwide, its grim forecast typically carries weight for the outlook of the global economy too. But while things don't look so great for shipping trade, the IMF is actually getting more optimistic about the global economy: it [upped](https://www.bnnbloomberg.ca/imf-lifts-world-growth-outlook-on-us-stability-but-risks-linger-1.1950304) its outlook for growth to 3% last week.



**What’s going on here?**

Shipping giant Maersk [sounded](https://www.bnnbloomberg.ca/maersk-cuts-forecast-for-global-trade-as-destocking-lasts-longer-1.1954905) the foghorn and warned about a darkening outlook for global trade on Friday.

**What does this mean?**

Maersk has been navigating choppy waters lately. Despite beating expectations last quarter with some savvy cost-cutting, the company’s revenue was actually 40% lower than the same period last year. The culprit: global consumer demand, which is drying up faster than a Saharan puddle in early August. As a result, companies are playing it safe, choosing to work through their existing stockpiles rather than splashing out on new orders. And that cautious approach is mirrored in shipping rates, which took a 50% belly flop last quarter and are now floating below pre-pandemic levels. Those waves have got Maersk, already steering a cautious course, further trimming its sails: the company is now bracing for global container trade to shrink up to 4% this year, a gloomier outlook than its previous 2.5% contraction prediction.



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SingleContentPiece_viewer

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contentPiece

mostPopularTags

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query ContentPieceQuery(
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  $encryptedEmail: String
  $planSlug: String
) {
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    ...SingleContentPiece_viewer_4uP6yi
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}

fragment AccessibleImage_accessibleImage on AccessibleURLImage {
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fragment AdvertWrapper_activeProductAdvert on ProductAdvert {
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fragment AnonymousPaywall_viewer_2HyoJ4 on Viewer {
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fragment AudioOnlyBanner_contentPiece on ContentPieceInterface {
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}

fragment AuthorLinkWrapper_author on Author {
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}

fragment Avatar_image on URLImage {
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}

fragment BannerAdvert_activeProductAdvert on ProductAdvert {
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}

fragment Block_block on ContentPieceBlock {
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}

fragment ContentAuthorAndMetadata_author on Author {
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}

fragment ContentDownloadBlock_authorization on Authorization {
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}

fragment ContentDownloadBlock_contentPiece on ContentPieceInterface {
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}

fragment ContentFooter_contentPiece on ContentPieceInterface {
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fragment ContentHeaderDetails_authorization on Authorization {
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fragment ContentHeaderDetails_contentPiece on ContentPieceInterface {
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fragment ContentHeader_contentPiece on ContentPieceInterface {
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fragment ContentMetadata_contentPiece on ContentPieceInterface {
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}

fragment ContentPieceBookmarkIcon_contentPiece on ContentPiece {
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fragment ContentPieceSEO_contentPiece on ContentPieceInterface {
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fragment ContentPieceSponsor_contentPiece on ContentPieceInterface {
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fragment DefaultContentHeader_contentPiece on ContentPieceInterface {
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fragment DownloadContentDropdownContentPieceRefetch_viewer_1QxYRk on Viewer {
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    title
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fragment DownloadContentDropdown_blocks on ContentPieceBlock {
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fragment DownloadContentDropdown_contentPiece on ContentPieceInterface {
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fragment EvergreenContentHeader_authorization on Authorization {
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fragment ImageBlock_block on ImageBlock {
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fragment KeyInsightsBlock_contentPiece on ContentPieceInterface {
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fragment KeyInsightsCarousel_contentPiece on ContentPieceInterface {
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fragment LicenseContentButton_contentPiece on ContentPieceInterface {
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fragment LoggedInPaywall_viewer_2HyoJ4 on Viewer {
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fragment MostPopularTags_tags on GenericTagConnection {
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fragment Navigation_authorization on Authorization {
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fragment Navigation_tags on GenericTagConnection {
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}

fragment PaywallBanner_contentPieceType on ContentPieceType {
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}

fragment PaywallBanner_viewer_2HyoJ4 on Viewer {
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}

fragment PremiumAccountPromotionPanel_webPaymentPlan_2HyoJ4 on WebPaymentPlan {
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  interval
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    stripeDiscount {
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fragment QuoteBlock_block on QuoteBlock {
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}

fragment ServerImage_image on URLImage {
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}

fragment SingleContentPiece_authorization on Authorization {
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  ...ContentHeaderDetails_authorization
  ...ContentDownloadBlock_authorization
  ...EvergreenContentHeader_authorization
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    isPreviewingContentAllowance
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}

fragment SingleContentPiece_content on Content {
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}

fragment SingleContentPiece_contentPiece on ContentPieceInterface {
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  ...MainContentSection_contentPiece
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  chapters {
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}

fragment SingleContentPiece_viewer_4uP6yi on Viewer {
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fragment Tag_tag on GenericTag {
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}

fragment TextBlock_block on TextBlock {
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}

fragment authorization_authorization on Authorization {
  roles {
    isPreviewingContentAllowance
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    isAnonymous
    hasPremiumSubscription
    isFreemium
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}

fragment authorization_content on Content {
  anonymousUserHasPremium
}

fragment authorization_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  isPremium
  contentPieceType {
    isAvailableForFreemium
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}


Maersk Warned Of Murky Waters Ahead

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