<\/p>\n
Shipping group Maersk said on Thursday container volumes plunged 30-40% between the U.S. in China in April as a trade war erupted between the world’s top economies, and warned a protracted dispute could shrink global volumes this year.<\/p>\n
However, the Danish group stuck to its full-year profit guidance, helped by continued disruption on the Red Sea trade route that has pushed up freight rates.<\/p>\n
Trade tariffs<\/a> imposed by U.S. President Donald Trump have prompted companies worldwide to cut sales targets and major economies to revise down growth prospects, impacting demand for shipping goods at sea.<\/p>\n Maersk, viewed as a barometer of world trade, said it now expects global container volumes within a range of down 1% to up 4% this year, compared with the 4% growth estimated at the beginning of the year.<\/p>\n “Volumes between China and the U.S. dropped sharply during April, between 30% and 40% as tariffs went up. We were able to reallocate them to some other areas where there’s still strong demand,” CEO Vincent Clerc told journalists in Copenhagen.<\/p>\n Many companies rushed<\/a> to ship goods to the U.S. at the beginning of the year in anticipation of potential tariffs. But most economists are calling the Trump tariff gambit a demand shock to the world economy which will sap global activity.<\/p>\n Maersk expects market growth in the second quarter, if customers take advantage of a 90-day pause in the bulk of planned U.S. tariffs to build inventories, but said there was a risk of demand contracting in the second half of the year if tariffs were not rolled back.<\/p>\n Maersk, whose customers include Walmart, Target, and Nike, said the threat of a further escalation in the trade war cast a shadow over the U.S. economy.<\/p>\n “The dream of being able to produce locally, with all you’ll need for your supply chain, is not possible,” Clerc said.<\/p>\n “Unemployment is at a historic low in the United States, and they are deporting hundreds of thousands of people. Where is the labour going to come from?” he added.<\/p>\n “If we have to pay U.S. labour, then no T-shirt will be sold for less than $150,” Clerc said.<\/p>\n Maersk said last week<\/a> it had downsized some vessels sailing between China and the United States. German rival Hapag-Lloyd said last month\u00a0<\/a>its customers had cancelled 30% of shipments to the U.S. from China.<\/p>\n Maersk shares were 0.6% higher at 1004 GMT.<\/p>\n RED SEA DISRUPTION<\/p>\n Maersk still expects earnings before interest, taxes, depreciation and amortisation (EBITDA) this year of between $6 billion and $9 billion.<\/p>\n JP Morgan analysts said in a research note they were surprised the shipper had maintained its outlook.<\/p>\n Maersk also said it expects Red Sea disruption to continue throughout the year, despite comments by Trump on Tuesday that the U.S. would stop<\/a> bombing the Iran-aligned Houthis in Yemen, which helped it maintain its profit guidance.<\/p>\n Maersk and rivals have benefited from longer sailing times and soaring freight rates as ships are rerouted<\/a> around Africa as Houthi militants have kept up attacks on Red Sea vessels in what they say is in solidarity with Palestinians in Gaza.<\/p>\n