Maersk Line - buying market share?
Lars Jensen
Leading expert in the container shipping industry. Click "Follow Me" here on LinkedIn to stay updated
This morning saw the Q2 Maersk Line results being published. Volumes were up 6.9%. Global market growth was 4.3% according to Container Trade Statistics, although Maersk Line states that market growth was 2%.
Hence it is clear that Maersk Line has again increased global market share - and given their own estimate of market growth they actually imply a larger increase in marketshare compared to using the CTS data.At the same time, their average freight rates are down 24%.
A comparison with the Hapag Lloyd results from earlier in the week becomes relevant. HL saw volumes decline 2.7% (i.e they lost marketshare), but the HL rates also "only" declined 19%.
The numbers therefore clearly indicate two different strategies: HL has reduced global marketshare and instead pursued higher yielding cargo. Maersk Line has pursued marketshare by taking on lower paying cargo. Given the volatile and commoditized nature of the main trades, it therefore cannot be ruled out that Maersk Line has been one of the drivers of the eroding rates in their (successful) pursuit of higher marketshare.
Note to the detail-oriented readers: Relative shifts in cargo volumes across trades can also be a contributing factor, but Maersk Line does not publish such details, hence it cannot be commented upon in a meaningful fashion.
Priority Shippers Association -Director of Procurement
8 年Is Maersk dropping rates during peak season to get more Volume ???
Senior Client Manager, Strategic Accounts at A.P. Moller - Maersk - 2024 NAM Sales Master
8 年HAPG's rates were probably much lower than Maersk to begin with.
M Director at Super Rack
8 年ULCS cannot be filled up with dry containers only weight per teu is far above than the designed weight per teu. Thus the operators of ULCS have to find out new cargoes for ULCS. I suggest to carry construction equipment on ULCS. ULCS has more than 1,000 plug for reefer containers, where seems it has a reefer ship on it. ULCS can have a RORO ship on it too.If you want to know about it, please let meknow at [email protected].
SHRM Certification Coach ? Executive Recruiter ? Total Rewards Consultant ? Bangladesh Labor Law Expert ? Military to Civil Career Transition Advocate ?
8 年With all these Ultra Large Contaier Ships (ULCS) in their fleet, I don't think Maersk Line can afford to operate empty ships. They have to fill up the ships to remain afloat.
Global Category Manager I Mastering Strategic Procurement I Logistics I Supply Chain | Passionate about Driving Value and Efficiency I EMBA Candidate 2024??
8 年Antoine Koeltgen