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AP Møller-Maersk on Wednesday warned of increasing financial threats, together with likely stagflation and Chinese factory closures, even as the container delivery big claimed a record quarter.

Søren Skou, Maersk’s main govt, explained to the Financial Instances that the recent next quarter was developing extremely significantly in line with the initial 3 months, which introduced the maximum revenue in the Danish group’s 114-calendar year historical past.

But he included: “We are assuming a slowdown in the next 50 percent, a normalisation. The visibility is very very low. Predominantly we see pitfalls constructing up in the economic system, in China with the Covid-19 policy where they use these incredibly challenging lockdowns, some downgrades owing to a pretty substantial oil rate.”

Maersk, which transports extra than one particular in each and every six containers carried by sea, is observed as a bellwether for global trade. It past week downgraded its forecast of advancement in the shipping business this year to a potential tiny tumble.

It also upgraded its profit forecast for this calendar year to $24bn of fundamental operating earnings, up from its February estimate of $19bn. “The momentum we have proper now is adequate to make our enhance,” Skou explained on Wednesday.

Even so, Skou observed that some economists ended up forecasting a economic downturn in the US all over the conclusion of the yr even though it was “too early” to say.

“There are quite a amount of variables that recommend we will see less development in the second half and into next calendar year,” he mentioned, pointing to declining buyer and business enterprise self-confidence in Europe and the US as nicely as slipping Chinese export orders.

Maersk was struggling from declining volumes simply because of a “mind-blowing” sixth week of lockdowns in Shanghai, Skou said. It had not yet been dramatic, nevertheless.

The company’s put up-tax gains for the initial quarter were being $6.78bn, towards $2.7bn for the identical quarter of 2021.