Delivery agency Maersk, a barometer for commerce, warns of ‘darkish clouds on the horizon’

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Maersk on Wednesday posted a file third-quarter revenue however warned of ‘darkish clouds on the horizon’ as transport container demand weakens.

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Maerskone of many world’s largest container transport companies, on Wednesday posted file revenue for the third quarter on the again of excessive ocean freight charges, however famous a slowdown in demand.

The Danish big, broadly seen as a barometer for international commerce, reported earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of $10.9 billion for the quarter, above consensus analyst projections of $9.8 billion and up round 60% from the identical interval a yr in the past

The firm confirmed its full-year steerage for underlying EBITDA of $37 billion and free money circulate above $24 billion.

CEO Soren Skou mentioned the «distinctive outcomes» this yr had been pushed by a continued rise in ocean freight charges, however mentioned it was clear that these have peaked and can start to normalize within the fourth quarter amid falling demand and an easing of provide chain congestion . Skou flagged that earnings in Maersk’s ocean operations will come down within the coming months.

«With the battle in Ukraine, an vitality disaster in Europe, excessive inflation, and a looming international recession there are many darkish clouds on the horizon,» Skou mentioned in a press release Wednesday.

«This weighs on shopper buying energy which in flip impacts international transportation and logistics demand. While we anticipate a slow-down of the worldwide financial system to result in a softer market in Ocean, we are going to proceed to pursue the expansion alternatives inside our Logistics enterprise. «

In its second-quarter report, Maersk flagged an impending slowdown in international transport container demand amid weakening shopper confidence and provide chain congestion.

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The firm mentioned Wednesday that international container demand is anticipated to contract between 2% and 4% in 2022, down from a earlier projection of +1% to -1%, noting that freight and constitution charges declined within the third quarter as demand moderated and Chinese Covid-19 restrictions diminished.

Maersk shares had been down 6% throughout early buying and selling in Europe.

Correction: The headline and textual content of this story has been up to date to right a reference to Maersk’s market share.

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