Vincent Clerc, the CEO of A.P. Moller-Maersk, stated that the oil shock resulting from the conflict in Iran will lead to a substantial increase in costs during the current and upcoming quarters. He affirmed that the company, regarded as the second-largest container shipping firm in the world, will strive to pass these costs entirely onto its customers.
In an interview with Bloomberg Television, Clerc explained that the conflict has increased expenses by around $500 million monthly. He noted that the company is still able to maintain its guidance, as its previous experiences suggest the possibility of transferring these costs to customers. He expressed optimism about sustaining this trend in the upcoming quarters.
Details of the Event
Maersk's shares fell by as much as 4.7% on the Copenhagen Stock Exchange, reflecting concerns about the war's effects on the global economy. Clerc confirmed that demand has been a strong element in the markets over the past two years and is expected to continue through the second quarter. However, predicting demand becomes more challenging later in 2026, as it heavily depends on the duration of the conflict in Iran.
Clerc added, "There is, of course, a significant amount of uncertainty when looking later in the year, related to what the secondary effects of this war will be, which is inflation, and possibly a decrease in demand." He pointed out that there are questions about how this will impact the economy overall.
Background & Context
In a previous statement, the Copenhagen-based company mentioned that the conflict in Iran had a limited impact on its first-quarter results. U.S.-Israeli attacks began on February 28, complicating the situation further. Maersk has also maintained its forecasts for 2026, projecting growth in the global container market between 2% and 4%.
Although shipping rates have slightly increased since the outbreak of the war, the rise has not been as sharp as during previous supply chain disruptions, such as the COVID-19 pandemic. Meanwhile, shipping companies, which are among the largest consumers of oil globally, are grappling with rising fuel prices and ship insurance costs, which are erasing gains from increased shipping rates.
Impact & Consequences
Maersk's earnings before interest, taxes, depreciation, and amortization in the first quarter reached $1.75 billion, exceeding analysts' average expectations of $1.66 billion. The company has maintained its financial outlook for 2026, as growth remained robust in the first quarter of 2026, driven by ongoing fleet expansion.
However, global demand forecasts for containers in 2026 are characterized by a significant degree of uncertainty. The company indicated that rising energy prices and trade restrictions in the Gulf region, which constituted about 6% of global container trade in 2025, pose downside risks to growth momentum.
Regional Significance
The Gulf region is a critical point in global trade movement, and any escalation in the conflict could directly impact oil and shipping prices. Frederic DeBouard, an analyst at Fernley Securities, noted that the guidance includes scenarios for reopening the Strait of Hormuz and the Red Sea to commercial shipping in 2026, indicating that Maersk is confident in reaching a resolution to uncertainties in both corridors this year.
Earlier this week, Maersk confirmed that one of its vessels, the "Alliance Fairfax," was among those that passed through the Strait of Hormuz with assistance from the U.S. military. The company faced a challenging situation as it had seven vessels owned or chartered stuck in the Arabian Gulf when the war broke out.
Clerc concluded by emphasizing that other company vessels in the Gulf may remain there until transit becomes safer, as they cannot risk the lives of crews or the protection of customer shipments. He noted that "a large part of the Strait of Hormuz is currently mined."