Solid Maersk outlook bodes well for U.S., global economic growth

|By:, SA News Editor

Strong Q2 earnings from the world’s largest shipping company is making some economists and investors more optimistic about the global economy.

Strength in its container transport business prompted A.P. Møller-Maersk (OTC:AMKAF, OTCPK:AMKBY) to raise its full-year guidance - "a sign that the world economy hasn’t collapsed that Maersk can lift its outlook... marked by the fact that the container market is developing maybe a bit better than expected and that Maersk has cut costs a lot," Sydbank's Jacob Pedersen says.

Maersk Line sees global container demand growing by 4%-5% in 2014, based on improving economic conditions, and CEO Nils Smedegaard Andersen expects shipping activity in the U.S. “will pick up in a significant way” in the last six months of the year, another sign of an improvement in global trade.