[191118.EN.BIZ] Container Shipping Will Suffer From US-China Trade War: Maersk Warns

DANISH shipping giant AP Moller-Maersk says top US importers have begun stocking up on Chinese goods before new import tariffs take effect, but warned a trade war would hit demand for container shipping in the coming years.

Chief Executive Soren Skou said: "The irony is that after (US President Donald) Trump has turned up the rhetoric, the United States has started importing even more from China.

"But there will definitely be a price for the container industry to be paid," he said, noting that the recent spike in shipments would be followed by a slowdown next year.

Maersk's data indicated that imports into the United States from China had grown 5 to 10 per cent year on year in the third quarter as companies such as Walmart and Home Depot built up inventories to avoid new import tariffs.

Meanwhile, Chinese imports from the United States were down 25 to 30 per cent in the third quarter compared to last year, according to Maersk's shipping data, reports Reuters.

The effect of trade tensions could reduce global container trade by between 0.5 and 2 per cent in 2019 and 2020, Maersk said as it presented results for the July-September quarter.

Container shipping volumes, excluding those from Hamburg Sud, were weaker than expected, falling by 1.9 per cent from the previous quarter.

Maersk bought German rival Hamburg Sud in 2016, which helped it boost revenue in the quarter by 31 per cent from a year earlier to US$10.08 billion versus the $9.98 billion expected by analysts.

Source : HKSG.