Disruptions in global trade flows are set to persist into the second part of the year, longer than previously expected, Danish transport giant A.P. Moller-Maersk A/S predicted.
Global supply chain issues are flaring up again after COVID-19 lockdowns in China caused massive congestion at the Asian country’s ports. At the same time, Russia’s war in Ukraine and rising inflation are upending trade patterns, hampering container flows further.
There’s a risk the global container market will contract this year, Maersk said on Tuesday, forecasting worldwide demand in the range of a 1% volume decline to 1% gain. It had earlier estimated demand growth of 2% to 4%.
Fewer available containers will keep the price of shipping goods high this quarter, with markets expected to start normalizing early in the second half, Maersk said, adding its own profit would likely go up by 25%.