By Jacob Gronholt-Pedersen
COPENHAGEN (Reuters) -A.P. Moller-Maersk on Thursday raised its full-year profit forecast as demand for ocean container freight has defied fears of a hit from trade disputes, although the shipper warned demand was likely to ease in the second half of the year.
Maersk, viewed as a barometer of world trade, said it now expected global container volumes to increase by 2% to 4% this year, compared with a range of down 1% to up 4% estimated in May. The new range implies lower second-half growth, it said.
A contraction in U.S. imports “was more than offset” by strong growth in imports into other regions, including Europe, Maersk said in its second-quarter earnings statement.
“Even with market volatility and historical uncertainty in global trade, demand remained resilient, and we’ve continued to respond with speed and flexibility,” CEO Vincent Clerc said.
Maersk shares were up over 3% in early trade.
Trade between China and the U.S. plummeted earlier this year in the midst of escalating tit-for-tat tariffs, prompting container shipping companies like MSC and Cosco to suspend regular routes or cancel individual voyages.
While a truce was agreed, investors remain on edge over whether the world’s two largest economies will be able to clinch a deal to avert a 55% tariff before an August 12 deadline.
“In a highly politicised environment, and confronted with major disruptions, goods continued to flow across and within countries,” said Maersk, which also operates a large logistics business.
The Danish company said it now expected underlying earnings before interest, tax, depreciation and amortisation this year of between $8 billion and $9.5 billion, compared with its previous guidance of between $6 billion and $9 billion.
Maersk also said it expected the disruption of shipments through the Red Sea to last for the remainder of the year.
Shipping companies have benefited from longer sailing times and soaring freight rates as ships are rerouted around Africa as Houthi militants have attacked some vessels in the Red Sea in what they say is a show of solidarity with Palestinians in Gaza.
Israel has in recent weeks come under increasing pressure to end the war in Gaza, which could reopen the Red Sea for container shipping.
Maersk said EBITDA rose 7% year-on-year in the second quarter to $2.3 billion, above the $1.98 billion expected by analysts.
Sales rose 3% year-on-year to $13.1 billion, also beating the $12.61 billion forecast by analysts in a company-compiled poll.
(Reporting by Jacob Gronholt-Pedersen. Editing by Terje Solsvik and Mark Potter)
