According to the Wall Street Journal, A.P. Moller-Maersk AS aims to expand its capacity specifically in the logistics-services capabilities, part of a strategic change to a landside business, and hopes will produce half its revenue in two years. Maersk’s Chief Executive Soren Skou plans to complete Maersk’s makeover by 2021.
Specifically, Maersk’s Chief Executive reported that the company focuses on the logistics sector due to the fact that the company still tries to cope with the aftereffects of the 2008 financial crisis. Meanwhile, the company faces additional challenges in light of the US and China trade dispute.
Today up to 80% of our earnings comes from container shipping. Hopefully a couple of years from now will be much closer to a 50-50 scenario between ocean and nonocean services.
Wall Street Journal added that Maersk has around 70,000 customers at sea who transmit a 20% of all container capacity; Yet, less than a quarter of those customers use the company to move their goods from ports to warehouses and distribution centers.
That’s why, Maersk seems to be attracted by the business of managing products before and after they move on ships.
We want to do that. We want to run the warehouse, receive the goods, stuff it into containers, ship it to the U.S. and provide a data feed that says the yellow swim trunks are in that box. Then we take it out of the containers and send the goods by trucks to distribution centers closer to the final delivery point.
Maerskal already shows a progress when it comes to port-to-port transportation for retail and lifestyle supply chains. Mr Skou addressed that he is looking for a development in automotive logistics and chemicals.
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The company bought U.S. customs house brokerage Vandegrift Forwarding Co. earlier this year, and Mr. Skou said there may be more such acquisitions. The company also invested in a freight-booking startup, Loadsmart Inc., last year, and this month launched an online tool called Maersk Spot aimed at simplifying booking with the shipping line.
On the contrary to Mr Skou’s idea and plan, many are the senior managers that still debate whether its better to get on the phone with customers they have known for years and negotiate freight rates, or let them book ship space on digitized platforms.
