Maersk to Reorganize Eliminating Brands and Consolidating Operations

Just weeks after announcing a significant increase in operating earnings and forecasting a quick rebound to pre-COVID-19 levels, shipping giant A.P. Moller – Maersk announced broad changes to its organization designed to speed the company’s transition to becoming an integrated container and logistics company. The plan calls for consolidating operations and eliminating brand which will also have a broad impact on the company’s workforce.

Saying that the initiatives would further improve customer service by providing end-to-end service delivery connecting and simplifying customers’ supply chains, the storied Safmarine brand will be merged into Maersk while the Damco brand’s Air and LCL (Less than Container Load) offering will be combined with Maersk’s logistics and services products.

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Source: The Maritime Executive

Airfreight rates expected to stay elevated through peak due to loss of belly capacity

Dive Brief:

  • Airfreight volume fell nearly 14% year over year (YoY) in July, according to the latest numbers from the International Air Transport Association. Freight capacity fell 31% YoY in July.
  • Belly capacity for international cargo was down 70% in July compared to the same month last year while freighter capacity was up nearly 29%, according to IATA.
  • As global economies begin to show improvement, “one of our biggest challenges remains accommodating demand with severely reduced capacity,” IATA Director General and CEO Alexandre de Juniac said in a statement. “If borders remain closed, travel curtailed and passenger fleets grounded, the ability of air cargo to keep the global economy moving will be challenged.”

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Source: Supply Chain Dive

Carriers follow through with capacity discipline and blank more sailings

Ocean carriers are continuing with their “cautious” approach to capacity management, announcing a new series of blanked sailings in October.

Both the 2M and THE alliances have withdrawn headhaul capacity in weeks 40 to 44 to mitigate expected reduced demand due to the Chinese Golden Week holiday, the first week of next month.

Alphaliner said that, notwithstanding that September “will be a strong month for the carriers”, their decision to avoid overcapacity in October proved they had “mastered the art of fine-tuning their capacity to match it with market demand”.

The consultant added: “The disastrous effects of previous rate wars, and the operational mess following the collapse of the Korean carrier Hanjin Shipping in 2016, have not been forgotten.

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Source: The Load Star

A.P. Moller – Maersk announces changes in Ocean & Logistics to enhance customer experience

A.P. Moller – Maersk introduces strategic changes that will further improve customer experience and end-to-end service delivery. As part of this, the Safmarine brand will be integrated into Maersk to enhance customers’ access to the global integrated offering. In addition, the Damco brand’s Air and LCL (Less than Container Load) offering will be combined with Maersk’s logistics and services products to complement its end-to-end offering. Also, a more simplified and customer-centric global Ocean & Logistics organisation is being introduced.

These changes represent a major step towards becoming an integrated container transport and logistics company, connecting and simplifying customers’ supply chains.

Our customers are at the heart of our vision. Their evolving supply chain needs are increasing the demand for multiple modes of transport and to meet these needs, we’re bringing our company’s expertise and capabilities even closer together. Taking these steps are key to accelerating our transformation,“  says Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller – Maersk.

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Source: Maersk