Maersk CEO Says Europe Nearing Recession, US Not Far Off
Shipping company Moller-Maersk CEO Soren Skou says Europe is close to a recession and the U.S. may soon follow, Bloomberg reported Nov. 2. The Danish company expects global container demand to drop by 2% to 4% this year, given factors such as the war in Ukraine and the impending energy crisis in the winter.
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"Global trade is moving backwards this year," Skou said in an interview with Bloomberg. "Certainly durable goods are down -- probably a lot of people overinvested in durable goods in the early part of the pandemic, and then of course we see the effect of the slowing economy, the war in Europe and what that has done to consumer confidence." Maersk said freight rates have fallen faster than expected and warehouses in the U.S. and Europe are filling up while consumer demand falls.