A.P. Moller-Maersk's Outlook on Shipping Demand

By Stine Jacobsen

COPENHAGEN (Reuters) – A.P. Moller-Maersk expects strong global shipping demand to persist in the upcoming months, but anticipates no return to the Suez Canal until 2025 due to threats from Red Sea attacks.

Challenges from the Red Sea

Attacks on vessels in the Red Sea by Iran-aligned Houthi militants have disrupted a key shipping route for east-west trade. Prolonged rerouting has increased freight rates and caused congestion in Asian and European ports.

Chief Executive Vincent Clerc stated, "There are no signs of de-escalation and it is not safe for our vessels or personnel to go there … Our expectation is that it will last well into 2025."

Stable Demand in Shipping

The company reported strong demand in the third quarter, particularly from exports out of China and Southeast Asia, with no signs of slowdown from Europe or North America foreseen in the coming months.

Sydbank analyst Mikkel Emil Jensen noted, "Management was bullish about the near future and highlighted good demand for container freight."

Investor Sentiment

While some investors expect Maersk to resume its suspended share buyback programme, a decision has yet to be made. Maersk's shares rose 6.4% by 1253 GMT.

Clerc dismissed fears that the U.S. election and potential trade tariffs could negatively impact the global freight market. He stated, "None of the candidates (in the U.S. election) has a view that we need to slow down economic activity … as long as the economy seems strong and consumption is robust, there will be continued strong demand for container traffic."

Maersk confirmed solid preliminary third-quarter earnings released on Oct. 21, raising its full-year forecasts due to consistent demand and ongoing disruptions in the Red Sea.