Maersk lifts outlook as China exports defy trade tensions

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COPENHAGEN - Danish shipping giant Maersk reported a drop in third-quarter net profit on Thursday, but it raised its outlook for the year as resilient Chinese exports buoyed container volumes despite global trade tensions.

The company, widely considered a bellwether for global trade, said it now expects an operating profit of between $3 billion and $3.5 billion, compared to the previous range of $2 billion to $3.5 billion.

Maersk posted a net profit of $1 billion for the third quarter, only a third of the figure for the same period a year earlier, which was lifted by high freight rates.

Revenue fell 10 percent to $14.2 billion for the period.

"We have delivered a strong third quarter across our business," chief executive Vincent Clerc said.

In its core business, called "Ocean", loaded volumes increased by seven percent, while the average freight rate was 31 percent lower than a year earlier, Maersk said.

Global container demand increased by three to five percent, despite geopolitical uncertainties, Maersk noted.

"Exports out of Far East Asia, and especially China, continue to be the main driver of solid volume growth," the company said.

US President Donald Trump has shaken up global trade with his tariffs campaign, with China one of his main targets, but Beijing and Washington are holding negotiations aimed at resolving their dispute.

Maersk noted that "volumes into North America contracted, particularly from China to the US.