Anne H. Steffensen is the CEO of Danish Shipping. Image Credit: Danish Shipping

Danish shipping executives expect market conditions to worsen over the next 12 months as geopolitical tensions intensify, according to a survey by shipowners’ association Danish Shipping.

Around half of CEOs at the organisation’s largest member companies see market conditions are more challenging today than they were 12 months ago, it said in an email statement on Thursday.

The survey, which covered 30 CEOs from Danish shipping companies, drew responses from 23 executives and examined the impact of geopolitical instability on their businesses and expectations for the next 12 months.

Sentiment for the year ahead is also negative, with almost half expecting conditions to deteriorate further, while fewer than one in four anticipate improvement.

“We have been through a year of enormous uncertainty for shipping, Anne H. Steffensen, CEO of Danish Shipping, said.

“Russia’s invasion of Ukraine four years ago sent shockwaves, and it seems to have triggered a domino effect.

“Attacks on merchant vessels in the Red Sea, tariff threats from the US President, and now war in the Middle East, which has closed the Strait of Hormuz.

“The world is a volatile and unpredictable place, and shipping is on the front line in feeling the impact.”

The survey also highlights rising cost pressures linked to geopolitical instability.

Four out of five respondents reported higher operating costs over the past year, with around half describing the increase as moderate and one-third saying costs had risen to a great extent.

While disruption in the Middle East has supported freight rates in some segments, particularly tanker markets, Steffensen stressed that stability remains more valuable than short-term gains.