The chief executive officer of Danish shipping giant %Maersk (MAERSK-B) is warning that global shipping volumes have plunged since U.S. import %Tariffs sparked a global trade war in April.
Maersk CEO Vincent Clerc said in an interview with CNBC that China-U.S. container market volumes dropped between 30% and 40% in April as customers take a wait-and-see approach to the tariff situation.
“Unless we find a solution there then the current level of tariffs is simply prohibitive on both sides for it to really show some recovery,” said Clerc, adding that he expects “a lot of volatility ahead.”
The comments about a plunge in global shipping volumes by sea come as the U.S. and China prepare to meet in Switzerland for trade talks in coming days.
The trade talks come after U.S. President Donald Trump imposed tariffs as high as 145% on most goods imported into America from China.
The steep tariffs have essentially ground trade between the world’s two biggest economies to a halt, something that is being reflected in shipping volumes, said the Maersk CEO.
Clerc’s comments also come after Maersk reported its first-quarter financial results.
The company based in Copenhagen, Denmark announced Q1 earnings of $2.71 billion U.S., which was up 70% from a year earlier and above the $2.57 billion U.S. expected by analysts.
Maersk also maintained its 2025 profit guidance, saying it expects earnings of $6 billion U.S. to $9 billion U.S. this year.
However, Clerc cautioned that the situation with global shipping has changed dramatically since the start of the second quarter in April and the implementation of tariffs.
Consequently, Maersk is now forecasting that global container market volume growth will be negative this year, down -1%. Clerc said that Maersk expects a “bumpy” road ahead.
Maersk’s stock, which trades in Europe, has declined 8% this year.
