Global shipping giant AP Moller-Maersk says it is facing a financial hit of around $500 million per month due to disruption caused by the ongoing Middle East war, with its chief executive describing the situation as the “most comprehensive energy shock in our lifetimes.” The Danish company, which handles roughly one-fifth of the world’s seaborne container trade, warned that prolonged instability could severely damage global commerce as key maritime routes remain under pressure.
At the center of the disruption is the Strait of Hormuz, a critical waterway for global energy and shipping flows, where traffic has reportedly fallen to a near standstill. Maersk chief executive Vincent Clerc said the situation has driven a sharp rise in oil prices, insurance premiums, and fuel costs, significantly increasing operating expenses across the industry. While freight rates have climbed in response to the crisis, the gains have largely been offset by rising input costs.
Clerc cautioned that if the strait remains effectively blocked or unsafe, the wider global economy could face secondary impacts including inflation and weakening consumer demand. He said there is growing uncertainty about how long the disruption will last and warned that sustained high energy prices could begin to reduce overall trade volumes as businesses and consumers cut back spending.
Despite the pressure, Maersk said it has so far been able to offset the additional costs by raising prices to customers, though Clerc acknowledged there is a limit to how long that approach can continue. He emphasized that the company “can’t shoulder” the full burden of the cost increases, signaling that further price adjustments may be unavoidable if conditions persist.
The crisis has also taken a visible toll on Maersk’s financial performance, with first-quarter pre-tax profit falling sharply to $292 million from $1.4 billion a year earlier. Revenues also declined, even as results came in slightly better than market expectations. The company maintained its forecast for modest global container market growth but described its outlook as highly uncertain due to geopolitical instability and ongoing oversupply in the shipping sector.
Meanwhile, hundreds of vessels and thousands of crew members remain affected by the disruption in and around the Gulf. Some ships have been forced to anchor, while others require military assistance to pass through high-risk waters. Maersk confirmed that several of its own vessels were in the region when the conflict escalated and said remaining ships will not transit the strait until conditions are deemed safe, citing concerns over maritime threats including reports of mined areas.