The CEO of Maersk states that there is no indication of a recession in freight demand in the United States.

• Vincent Clerc, CEO of Maersk, stated on CNBC that U.S. inventories are not at a level that suggests a significant slowdown is imminent, despite mounting fears of a recession in the world's largest economy.
• In the most recent quarter, container demand was driven by Chinese exports, according to Clerc.
• On Wednesday, Maersk reported a decrease in year-on-year underlying profit to $623 million from $1.346 billion in the second quarter, as well as a decline in revenue to $12.77 billion from $12.99 billion.

According to Maersk's CEO, the company is not observing any indications of a U.S. recession, as freight demand continues to be strong.

According to Vincent Clerc, who spoke on CNBC's "Squawk Box Europe" Wednesday, the shipping container market has remained surprisingly resilient in the face of recession fears over the past few years. He added that container demand is a good indicator of underlying macroeconomic strength.

Despite some unpredictability in numbers for companies replenishing stocks, U.S. inventories — goods being stored before delivery or processing — are higher than they were at the beginning of the year, but not at a level that is worrisome or that seems to indicate a significant slowdown right in the offing, Clerc said.

"We examine purchase orders from numerous retailers and consumer brands that require importing into the U.S. for the upcoming month, and the data and indicators suggest that consumption levels in the U.S. will remain strong."

Concerns about a recession in the U.S., the world's largest economy, have intensified after weaker-than-anticipated jobs data was released, causing disagreement among economists and market participants.

The most recent release from the U.S. Census Bureau indicates that U.S. retail trade inventories, which measure unwanted build, were up 5.33% from a year ago to $793.86 billion in May.

According to a report released by leasing platform Container xChange on Wednesday, indicators suggest that inventories are higher than demand, which may result in a less prosperous time for container traders, the logistics market, and retailers who stockpiled in the coming months.

Container volumes have remained resilient despite Maersk's surprise, and the company anticipates this trend to continue in the upcoming quarters, with no signs of a global recession.

The increase in the global share of containers originating in or heading for China has been the driving force behind strong container volumes, he stated.

In 2022, the Danish firm had a more pessimistic outlook, predicting a decline in demand due to inflation, the possibility of a global recession, the European energy crisis, and the ongoing war in Ukraine.

In 2023, a combination of factors caused freight rates to decline, resulting in a drop in Maersk's profits.

This year, the trend of shipping firms diverting trade routes around the southern coast of Africa due to soaring geopolitical tensions in the Red Sea was partially reversed, leading to extended journey times and reduced capacity in the global system.

Red Sea to cause further inflation

Red Sea diversions will likely continue until the end of the year, according to Clerc's statement on CNBC Wednesday.

To move global trade around the world, more capacity and ships are needed, which has resulted in shortages in the second and third quarters, as stated.

"As a result of this, we have had to bear significant costs, including the need for more ships and containers to meet our expectations."

If the situation continues, Maersk will experience "significant inflation" in its cost base, which it will need to pass on to customers, with Asia to Europe or U.S. east coast routes costing between 20% and 30% more.

The Danish shipping giant's margins have improved due to capacity constraints in the short term, resulting in three profit upgrades in recent months, Clerc stated.

On Wednesday, Maersk reported a decrease in year-on-year underlying profit to $623 million from $1.346 billion in the second quarter, as well as a decline in revenue to $12.77 billion from $12.99 billion.

Although the company's ocean freight margins were weaker annually, they were "significantly better" than in the first quarter of 2024 and fourth quarter of 2023, with an earnings before interest and taxes margin of 5.6% versus -2% and -12.8% in those prior periods.

Maersk shares were 1.6% lower at 12:45 p.m. in London on Wednesday.