Maersk warns trade war could hurt shipping

Credit: Reuters Studio
Published on August 15, 2019 - Duration: 01:02s

Maersk warns trade war could hurt shipping

The world's biggest container shipping line beat expectations in its latest earnings, but Maersk says the China-U.S. trade war could still hurt.

Julian Satterthwaite reports

Advertisement

Maersk warns trade war could hurt shipping

When there's a trade war on, the world's biggest container shipping company gets closely watched.

Denmark's Maersk actually beat expectations on Thursday (July 15).

Earnings were up 17 percent to nearly 1.4 billion dollars.

It benefited from higher freight rates and lower costs.

The firm says it still expects container traffic to grow as much as three percent this year.

It doesn't expect to escape the China-U.S. trade battle unscathed, however.

Maersk says new tariffs imposed by the two could cut 1.5 percent off container demand next year.

It's preparing for any tough times by cutting costs.

The firm says restructuring has delivered one billion dollars of savings already.

It's sold off its oil and gas operations to focus on shipping and logistics for customers like Walmart and Nike.

Investors seem impressed.

Maersk shares rose almost seven percent in early trade Thursday.

You are here

You might like