On Wednesday, August 7, Vincent Clerc, the CEO of Danish shipping giant Maersk, expressed concerns that a potential victory by Trump in the US presidential election could escalate the US-China trade war and geopolitical tensions, leading to disruptions in shipping. As a result, retailers and manufacturers are placing orders early, with some customers ordering Christmas supplies much earlier than usual.
According to the Financial Times report on Wednesday, Clerc stated, “It is clear that not only in the US but overall, customers are placing orders ahead of schedule. Due to disruptions and the possibility of a trade war, people prefer to stock Christmas goods early in the warehouse.”
In recent years, the global supply chain has just recovered from the severe disruptions caused by the pandemic, and last year, there was an incident of Houthi rebel attacks on cargo ships. This led most vessels to avoid the Red Sea and sail around the Cape of Good Hope in Africa. Clerc mentioned that the Red Sea transportation disruption seems to be becoming more entrenched each month, but he declined to comment on whether this situation would continue into 2025.
Since May, Maersk has raised its 2024 financial guidance three times due to continued global chaos and higher-than-expected growth in global trade benefiting the company.
Clerc warned customers in June not to place Christmas orders early due to the Red Sea transport disruption. However, shipping experts have noted that Trump’s threats of imposing high tariffs on Chinese goods may lead importers in the US and other regions to place orders earlier, a point confirmed by Clerc.
Maersk handles approximately one-fifth of the world’s total maritime freight volume annually, making it a global trade indicator.
In recent days, there have been significant fluctuations in the New York stock market, with many concerned about a potential economic downturn in the US. However, Clerc stated that there are no signs of the US entering a recession. He added that US inventories are higher than at the beginning of the year, and demand is still good. Nonetheless, he expressed uncertainty about how long this demand flexibility can be sustained.
Founded in 1904 and headquartered in Copenhagen, Denmark, Maersk is the world’s largest container shipping company, with a service network covering 130 countries globally.
In 2021, Maersk was ranked 297th on the Fortune Global 500 list.
On December 15, 2023, Maersk announced the suspension of shipping through the Red Sea, opting to sail around the southern tip of Africa at the Cape of Good Hope.