Maersk sees signs of looming recession
STORY: Maersk says it sees signs of a looming recession.
The shipping giant warned Wednesday (November 2) that demand for transport and logistics is slowing.
It also cut its forecast for container demand this year, predicting a drop of up to 4%.
The Danish firm cited the Ukraine conflict and rising inflation as among the drags.
That will worry economists, who see Maersk as a barometer for global trade.
Prices for freight are also coming down.
They surged during the global health crisis, when strong consumer demand led to congested ports and long delays.
Now Maersk says rates are coming down again as demand eases and supply chains normalize.
Over the June to September quarter the firm saw underlying earnings hit almost $11 billion - well ahead of analyst forecasts.
Revenues jumped by more than a third.
But on Wednesday morning Maersk shares were down over 5% in early trades following the glum outlook.
