Maersk Line Announces Seven Percent Growth
September 10, 2008
COPENHAGEN, Denmark – Maersk, one of the leading liner shipping companies in the world, has announced a projected growth rate of seven to eight percent globally this year despite the rising fuel costs and suffering economies worldwide.
According to Asia Pacific chief executive Jesper Praestensgaard, intra-Asia trade is growing and expanding markets in China and Singapore now drives new service. Maersk Line, which now operates over 500 vessels and 1.9 million containers, has ordered 16 new container vessels for 2010-12 and 34 new ships for delivery by 2012.
Although economic downturns in the U.S. and Europe have impacted the shipping industry, the lost revenue is projected to be compensated by emerging Asian markets. Also, Maersk officials indicated that investment in the expansion of shipping capabilities is based on long term, rather than short term, projected profits. "There is no doubt that the current oil prices are hindering global trade, both in terms of reducing consumption and increasing transportation costs," said Praestensgaard. "Shipping is cyclical, everyone knows that. So when we make investments in shipping, we invest in ships with lifespan of 25 to 30 years, and you have to measure success over that lifespan."
Maersk officials also indicated that Brazil and Argentina also have fast growing consumer markets, with the trade between Asia and the East Coast of South America growing more than an average of 20 percent per year. As of September, Maersk also reopened the acceptance of commercial cargo to and from Iraq in response to the growing demand from customers. Maersk will operate through its sub-agent Inchcape Shipping Agency.
Praestensgaard also indicated that a merger between Neptune Orient Lines (NOL) and HapagLloyd, the container unit of Germany's TUIAG, might be a possibility.
According to Asia Pacific chief executive Jesper Praestensgaard, intra-Asia trade is growing and expanding markets in China and Singapore now drives new service. Maersk Line, which now operates over 500 vessels and 1.9 million containers, has ordered 16 new container vessels for 2010-12 and 34 new ships for delivery by 2012.
Although economic downturns in the U.S. and Europe have impacted the shipping industry, the lost revenue is projected to be compensated by emerging Asian markets. Also, Maersk officials indicated that investment in the expansion of shipping capabilities is based on long term, rather than short term, projected profits. "There is no doubt that the current oil prices are hindering global trade, both in terms of reducing consumption and increasing transportation costs," said Praestensgaard. "Shipping is cyclical, everyone knows that. So when we make investments in shipping, we invest in ships with lifespan of 25 to 30 years, and you have to measure success over that lifespan."
Maersk officials also indicated that Brazil and Argentina also have fast growing consumer markets, with the trade between Asia and the East Coast of South America growing more than an average of 20 percent per year. As of September, Maersk also reopened the acceptance of commercial cargo to and from Iraq in response to the growing demand from customers. Maersk will operate through its sub-agent Inchcape Shipping Agency.
Praestensgaard also indicated that a merger between Neptune Orient Lines (NOL) and HapagLloyd, the container unit of Germany's TUIAG, might be a possibility.
