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AP Moller-Maersk A/S CEO said on Wednesday that “there are many dark clouds on the horizon” as the Danish shipping company reported its quarterly financial results.

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“With the war in Ukraine, the energy crisis in Europe, high inflation and a looming global recession, there are many dark clouds on the horizon,” CEO Soren Skou said in a press release. “This affects the purchasing power of consumers, which in turn affects global demand for transportation and logistics.”

The US, some European and other countries are struggling with constant inflation.

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In September, US inflation, measured by the consumer price index, rose 0.4% from August and 8.2% from the previous year, FOX Business previously reported.

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The European Commission’s Eurostat said on Monday that annual inflation in the euro area, exacerbated in part by the energy crisis exacerbated by Russia’s war in Ukraine, is expected to hit 10.7% in October, after 9.9% the previous month.

The International Monetary Fund and other organizations have expressed concern about the risks of a potential recession in the global economy.

Skow’s statement continued by adding that Maersk expects “a slowdown in the global economy will weaken the market in the ocean” but plans to “continue to seize growth opportunities within our logistics business.” His Ocean business, which the CEO said helped Maersk achieve “exceptional results” in the third quarter, generated $18.02 billion in revenue.

Cargo Ship

In a press release, he also noted that “freight rates peaked and began to normalize during the quarter, driven both by lower demand and lower supply chain congestion.”

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Maersk said that “global container volumes are estimated to be down 3% year on year.” The company forecasts that global demand for containers will also decline by 2-4% this year “as a result of a slowdown in economic activity.”

Port Felixstowe

The Danish shipping giant reported third-quarter consolidated revenue of $22.78 billion, up 37% year-over-year. Meanwhile, earnings before interest, taxes, depreciation and amortization (EBITDA) were $10.86 billion, up about 56% year-over-year.

According to Maersk, the full-year forecast still assumes 2022 EBITDA of approximately $37 billion.