Skou wants Maersk to become like FedEx

Skou wants Maersk to become like FedEx

Søren Skou, group CEO of AP Møller Mærsk, outlined his vision for the future of the company’s transport and logistics businesses during the firm’s capital markets day this morning.

The group announced in September it is splitting its transport and logistics divisions away from its energy related business. Energy makes up around 25% of the group’s current total revenues. Skou said he was keen to make up this loss in revenues fast – with recent addition Hamburg Sud filling the gap by 15%, leaving just 10% to fill.

Analysts are predicting the group will soon sell off all or part of its energy holdings to fund further transport acquisitions.

“With Hamburg Sud we will build a very strong dual platform in South America,” he said, comparing the move to what Maersk has done in Africa since it took over Safmarine in 1999.

“Our aim is to become a global integrator of container logistics,” Skou said, explaining he wanted to link up and integrate various strands of Maersk businesses to be more like UPS and FedEx with better cross selling of services to customers.

Skou also said the consolidation seen in the liner sector would benefit Maersk going forward.

By 2018 the top five carriers will have about two thirds of the global market, Skou observed, adding: “We believe more is likely to come on the consolidation front in the coming years.”

Looking further ahead, the Maersk boss said: “The industry does not need any new ships.”

Skou predicted that by 2022 there would be around 23m teu in global liner capacity against a likely demand for 22m teu.

“Merging, acquiring is the most rational thing,” he suggested.

Overcapacity is also hitting container terminal sector, Skou warned.

“Terminals cannot expect to be utilised as well as they used to be unless you do something about it which we intend to do so,” Skou said.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Andrew Craig-Bennett
    December 13, 2016 at 11:34 am

    I am reminded of the sort of pronouncements that emanated from India Buildings, Liverpool, as the late, great, Blue Funnel Line turned itself into a forwarder and eventually disappeared leaving only the smile of the Cheshire Cat.