Maersk Completing Order of 10 Container Megaships

Maersk Line, the world’s biggest container-shipping operator by capacity, is completing an order of 10 container megaships from Korea’s Daewoo Shipbuilding & Marine Engineering Co. worth more than $1.5 billion, two people directly involved with the matter said.

It will be the first time since 2011 that Maersk Line, a unit of the Danish shipping and oil conglomerate A.P. Moller-Maersk A/S, returns to the market for ships of this size. Back then, it placed an order with DSME for 20 so-called Triple-E ships, which carry in excess of 18,000 containers each. The last two vessels from that order will be delivered to Maersk by July.

Maersk Line's new CEO Soren Skou cries 'slow down - we're destroying shareholder value'

THE container shipping business is consistently destroying shareholder worth and wishes to rein back fleet growth to enhance returns, says Maersk Line's new CEO Soren Skou.

Mr Skou, who took over in mid-January, created the comments in London shortly once parent company, AP Moller-Maersk, announced a internet loss of US$537million from its container activities division in 2011, against a $2.64 billion internet profit the previous year.

Nils Andersen, AP Moller-Maersk's chief govt, has accepted that Maersk helped to accelerate last year's industry-wide fall in rates by introducing a daily service from the most Asian ports to the most northern European gateways, reported London's money Times. The Daily Maersk service significantly increased ship capability on key trade route at a time of already weakening demand.

But Mr Skou said Maersk had captured enough market share to fill the additional capability and currently required to enhance profitability.

"We we have a tendency tore notably happy to envision the uptick we have a tendency to had in volume once we launched," he said. "On the degree, we're where we want to be so as to be competitive. currently it's concerning attempting to induce higher paid."

Mr Skou noted that ocean liners had achieved, on average, operating profit margins of simply 2 per cent over the past seven years and solely earned "acceptable" margins of twelve per cent in 2010.

The new chief govt, who was previously CEO of Maersk's tanker division, refused to mention what level of returns the business ought to obtain, however said: "What I will say is that, unless we have a tendency to get business returns up to eight or 9 per cent, we're undoubtedly destroying shareholder worth."

The Danish shipping cluster might do nothing to manage the reaction of the opposite carriers to the speed slump, however would defend its market share if necessary by cutting costs, Mr Skou said.

But the shipping line would aim this year to grow by solely the 3 to four per cent annual rate given the anticipated for demand to ship containers. The carrier has already cut capability on its Asia to Europe services 9 per cent in an endeavor to come back to profitability.

He denied, however, that the shift represented a wholesale modification of strategy. "In the last few years, so as to be ready to provide, among different things, Daily Maersk, we've got been growing considerably faster than the market," Mr Skou said. "The huge modification is basically in our growth aspirations."

picture: google.com

Singapore's APL named best ocean carrier, also tops in innovative IT

SINGAPORE-based carrier APL, the container shipping arm of Neptune Orient Lines (NOL), has been awarded the "Global Ocean Carrier of the Year" and the "Innovation IT of the Year" by London's Containerisation International, winning over other leading rivals, among them, Maersk, CMA CGM and Hyundai Merchant Marine.

Said APL president Kenneth Glenn: "We're delighted to once more be recognised by industry peers for shipping excellence. This is an affirmation of our focus on providing customers with schedule reliability and service integrity."

The Innovation IT of the Year award was won in recognition of the company's development and implementation of its proprietary SMARTemp service, which uses satellite tracking to continually monitor the temperature and humidity of refrigerated containers carrying sensitive cargo. This makes sea freight a feasible choice for shippers with cargo traditionally shipped by air, said APL.

It was the second time in three weeks that APL was honoured as the world's top carrier. In September, it won the Ship Operator Award at the Lloyd's List global awards.

Other awards conferred to APL this year include Liner Owner/Operator of the Year by Seatrade Asia magazine in June, and best shipping line in both the transpacific and Asia-Europe trades at the Asian Freight and Supply Chain Awards in April.

source: shippingazette.com / picture: google.com

MAERSK Signs MOU With INDONESIAN Port Operator

Chief executive officer of the AP Moller Maersk Group, Nils S Andersen, signed a memorandum of understanding with the top Indonesian port operator Pelindo II. The two companies are committed to infrastructure investments in Indonesia.

Addressing R J Lino, president director of Pelindo II at a meeting at the Maersk headquarters in Copenhagen, Denmark, Andersen expressed strong interest in further developing Maersk’s engagement in Indonesia.

“Indonesia is already an important market for Maersk, and we are interested in committing more of our resources to expand our operations in the country,” said Andersen. He expressed the Maersk Group’s desire to develop and expand the infrastructure of Indonesia in cooperation with Pelindo II, facilitating Indonesia’s growing foreign trade.

The memorandum of understanding outlines a plan for training and development of Pelindo II staff as well as providing consultancy support in lifting operational efficiencies in one of the Pelindo II facilities.

Focusing its efforts on new markets outside the OECD countries is part of the Maersk Group’s priorities for 2011, and Indonesia is a country of particular interest to Maersk. As a conglomerate, with container shipping, port activities, oil exploration, oil production activities as well as oil services, there are many opportunities to grow and provide top quality infrastructure and services in Indonesia.

The A.P. Moller - Maersk Group has been present in Indonesia since 1958, operating through shipping lines Maersk Line, Safmarine, MCC Transport and the company’s logistics arm, Damco.

In 2010, the A.P. Moller ‐ Maersk Group had a revenue of US$ 56.1 billion and a profit after tax of US$ 5.0 billion.

picture: google.com / source: logasiamag.com

APL Is Best Buy Top Carrier

APL has again been named Carrier of the Year by Best Buy, a leading multi-channel global retailer and developer of technology products and services. It's the second year in a row that the Singapore-based container shipping line has won the award.

APL, which transports Best Buy cargo from China to the US, was selected based on a nine-point scorecard. Criteria included transit time, pier service, shipping schedule integrity, systems, vessel space integrity, equipment availability, arrival notice issuance, loss and damage claims, and origin bill of lading issuance.

APL began transporting Best Buy cargo in 2008 from the Chinese ports of Shanghai, Xiamen, Fuzhou and Yantian. Most of it is discharged at the carrier's terminal at the Port of Los Angeles. Some is transported to the US East Coast via the Panama Canal.

Best Buy is an international retailer with operations in the US, Canada, China, Europe and Mexico .

source: logasiamag.com / picture:google.com

APL Logistics extends double-stack IndiaLinx train service to India

SINGAPORE's Neptune Orient Lines unit APL Logistics has announced that has run its first double-stack container train service in India.

APL IndiaLinx, its rail operations arm in the country, stacked 90 FEUs two high on a train that departed Mundra Port on the west coast on June 16 for an inland container rail terminal at Kishangarh, near Delhi, said a company statement.

The double-stacked train operation for the Mundra-Kishangarh followed the Indian Railways' recent decision to allow stacked train access along this rail corridor. The development was part of the rail authority's bigger project to provide a freight-dedicated network of railroads with double-stack train access connecting key gateway ports and major North Indian industrial centres before end 2016. APL IndiaLinx plans to expand its stacked train service network as more rail corridors are allowed double-stack access said the company.

"Double-stack trains are becoming an imperative in the rapidly-growing Indian market," said APL IndiaLinx managing director Amitabha Chaudhuri. "They help to ease congestion at ports where capacity constraint of rail corridors exists. Shippers also stand to enjoy improved connectivity between the key gateway ports and the major industrial centres in North India, and predictability, as we roll out stacked train services.”

APL Logistics provides international, integrated supply chain services in 53 countries, including both origin and destination services such as freight consolidation, warehousing and distribution management.

Established in 2006, APL IndiaLinx is one of the first privately-owned companies to be granted the most comprehensive rail operating licence in India. It owns and operates 18 weekly rail services between inland container rail terminals in the northern India and the gateway ports on India's west coast. The domestic rail operations arm of APL Logistics in India, APL IndiaLinx, reported a strong growth of 70 per cent in volume and 90 per cent in revenue in 2010.

source: Shipping Gazette / picture: google.com

MAERSK wins international MARITIME CENTRE AWARD in Singapore

AP MOLLER-MAERSK has received the International Maritime Centre (IMC) Award 2011 from the Maritime Port and Authority of Singapore in recognition of the group's "significant" contributions to the Lion City's development as a maritime centre and its impact on the Singapore economy, according to the group.

"We are convinced that Singapore will continue to be a powerhouse for growth in south east Asia and in the world. With its strong tradition for business dialogue and determination to stay competitive, we believe Singapore will also constantly adjust to the changing needs of shipping," said Nils Andersen, partner and group CEO, who was in town to deliver the Singapore Maritime Lecture and receive the accolade on behalf his company.

The IMC award was presented by the Minister of Transport Raymond Lim at a ceremony earlier this month.

"Singapore, as a global hub for global business, has become a natural second headquarter for AP Moller-Maersk. It is the only other place in the world, outside of Copenhagen, to house more than 10 of the group's business units. Singapore is also where the group has the most number of its ships flagged outside of Denmark," a company statement said.

It said that by the end of this year, Maersk will have about 107 vessels and rigs flagged in Singapore, adding up to over 5.5 million gross tons and making it the largest vessel owner in the city state.

source: shippingazette.com