Maersk experiences Asia-US trade decline, calls it `stock correction`

MAERSK Line, the world`s largest carrier, said it is experiencing a decline of Asia-US container shipping demand, which it calls a retail "stock correction".

"We definitely are seeing a short dip in June, but it is not that dramatic," said Maersk vice president and head of South China Soren Karas at the inaugural Journal of Commerce Shanghai Container Shipping Conference.


"Most say this is a short-term phenomenon," he said. "It is clear that if the biggest retailers are taking June to correct inventory, that will have an impact."


Though there are worries about the sluggish economic recovery in the US, Mr Karas is still optimistic about the overall prospects by saying: "I think the reason it is getting attention is that business had been growing every month and many carriers expected another uptick. That expected uptick is not happening."


He said the weaker-than-expected demand is isolated to transpacific trade, but "is happening to a smaller extent to Europe."


"The retailers are telling us the growth will come. I would be careful about over-dramatising what is happening. We have had very few customers who have come in and say they have to rethink their contracts because the circumstances have changed," said Mr Karas.