Maersk to defend market share 'at any cost'
February 20, 2012
Oversupply of container vessels operating on the Asia-Europe trade lane has pushed Maersk Line’s container freight rates to unsustainably low levels.
In order to rationalise its service, Maersk Line is removing 9% of its vessel capacity currently operating on the Asia-Europe trade.
CEO Søren Skou said: “With this adjustment we are able to reduce our Asia-Europe capacity and improve vessel utilisation without giving up any market share.
“We will defend our market share position at any cost, while focusing on growing with the market and restoring profitability.”
The 9% capacity reduction will be facilitated by a vessel-sharing agreement with the French container shipping line CMA-CGM.
A report last month by shipping analyst Alphaliner predicted Europe-Far East container traffic growth would slow to 1.5% in 2012 from an estimated 2.8% in 2011, due to a weakening economic outlook in Europe.
The containership fleet, by contrast, is set to grow by 8.3% this year.
The line said “where commercially appropriate”, it would also consider “additional opportunities to reduce capacity”, including redelivery of time-charter tonnage, laying-up ships and slow-steaming.
Additionally, Maersk Line will not take up the option for a final series of ten 18,000teu Triple-E container vessels.
Courtesy of IFW
