CEO Søren Skou was unable to deliver what analysts, competitors, and undoubtedly shareholders had expected. The carrier has lost market shares at what looks like the worst possible time, observers note. Fully in line with expectations, says Skou.
Maersk Line grew, benefiting from a strengthened container freight market, while major impairments at Maersk Tankers and APM Terminals dragged the group's overall results down. And the hacker attack came at a high price.
The world's largest container carrier, Maersk Line, achieved a USD 339 million profit in the second quarter. Freight rates are up 22 percent compared to last year, while impairments in other business units dragged down the group's overall result into the red.
The Maersk Group's product tanker carrier, Maersk Tankers, lost more than USD 483 million in the second quarter, a deficit that pulls the group into the red. Port unit APM Terminals also booked impairments related to several ports.
One of the world's leading rating agencies, Moody's, once again believes in the shipping sector which no longer has negative prospects. There are positive expectations to the container and dry bulk segments, shows a report from the firm. It is a whole other story for tanker carriers.
Maersk spends millions of dollars every year in its efforts to shape the political process at the forge of power in the US. ShippingWatch has looked into which political cases the Danish company's lobbyists are working on, and why.
Key players in the large market for export of frozen fish from northern Norway disrupted Icelandic Eimskip's acquisition of Nor Lines. It would have weakened competition significantly, according to Samskip and other players in the market.
The 14 carriers in a new South Korean collaboration, constituting the South Korean government's attempt to strengthen several of the country's ailing carriers, seems to have received a tepid response from participants, according to Alphaliner.
Communication plays a key role in the transformation of 170-year-old Hapag-Lloyd, explains communications director Nils Haupt. From external branding, communication with politicians and consumers to the internal shaping of a company. This is the latest article in ShippingWatch's series about communication in the maritime industry.
Rumors of a tonnage expansion have surrounded France's CMA CGM for some time, and now several media report that the carrier will soon place an order for a series of container ships with capacities upwards of 22,000 teu, which would be the world's biggest container vessels so far. The carrier remains silent.
The Brazilian foreign trade chamber will terminate an agreement that provides two carriers owned by Hapag-Lloyd and Hamburg Süd with exclusive rights on sea freight between Brazil and Chile, reports Reuters.
South Korea's new president is allegedly prepared to go further than his predecessor in efforts to aid the country's crucial maritime industry. Part of the plan is establishing the Korea Maritime Promotion Agency. The EU has previously criticized the country's involvement in the maritime sector.
SeaIntel's latest calculations show that Maersk Line is far from the days when it could boast towering schedule reliability levels. The carrier is now ranked 9th among the 18 largest container carriers.
Greek Danaos is still struggling with fallout from the collapse of Hanjin, to which the container shipowner had chartered several vessels. Meanwhile, the market will remain under pressure from the many mega-vessels, says CEO John Coustas, who does not expect recovery anytime soon.
Freight rates on the Asia-North Europe services have been moving in the right direction, and in 2017 shipowners are poised to earn over USD 1 billion more than in 2015, shows a new analysis from SeaIntel.
Japan's three biggest carriers, Mitsui OSK, Kawasaki Kiesen, and Nippon Yusen, have published interim reports for the first quarter. The results fall in line with the trend from the carriers' numbers for the full-year 2016.
This summer week brought several key stories. ShippingWatch reported on the Danish Attorney General's indictment against Lars Møller of OW Bunker. The first half year results of bulk and container bode well for the two sectors. And the new Dan-Bunkering CEO unveiled his ambitious growth target.
Container carrier Orient Overseas Container Lines (OOCL), which is on track to be sold to Cosco, can look back on a second quarter with a significant boost in revenue. Stronger rates indicate an overall positive result for the container sector in the second quarter, says Fearnleys.
Iceland's Samskip has acquired Norwegian shipping and logistics company Nor Lines, which competitor Eimskip tried in vain to take over earlier this year. The acquisition awaits approval by Norwegian regulators.
Hyundai Merchant Marine reports increased transport between Asia and the US West Coast and is optimistic about higher volumes in the third quarter this year, says the carrier, which partners with Maersk Line and MSC.
The anticipated growth in container volumes on the intra-Asian routes will be smaller than previously estimated, writes analyst firm Drewry. But the routes will still "make a significant contribution" to the global container growth this year, notes the firm.
Following two major mergers, Hapag-Lloyd's potential talent pool has grown substantially. But so has the diversification among the candidates. With two programs, the German carrier aims to foster what could become the next CEO. Self-reflection is crucial for advancement.
35 percent of the container vessels sailing between Asia and North Europe are ultra-large ships with capacities exceeding 18,000 containers – and this number will increase significantly within the next few years, shows an analysis by SeaIntel.
Employees at the major container carriers point first and foremost to a shortage of career opportunities, and they are not necessarily pleased with senior management, according to new data from recruitment firm Glassdoor. The data bring good as well as bad news for Maersk Line and MSC.
Among this week's highlights were interim reports from suppliers Alfa Laval and Wärtsilä as well as an interview with Dan-Bunkering's new CEO, while DSV and the Port of Gothenburg talked about communication in relation to unique situations.
Hyundai Merchant Marine has reduced its capacity by 28 percent in the period from April to June, according to Alphaliner. HMM has chartered nine vessels to the 2M alliance members Maersk Line and MSC, with whom the South Korean carrier has formed a vessel sharing agreement.
Analyst firm Alphaliner points to Singapore-based Pacific International Lines (PIL) as the most obvious acquisition candidate among the four carriers currently not part of the major alliances in the container market. However, the owning family told ShippingWatch in May that a sale was not in the cards.
The medium-sized niche carriers have grown their fleets 12.8 percent since the turn of the year. This is significantly more than the global carriers for instance, and could lead to fierce competition among all niche carriers, notes SeaIntel.
When the delays were at their worst, Maersk vessels arrived a little over 24 hours late on average. But the delays were short-lived, according to a new analysis by SeaIntel. The IT problems are almost over, says Maersk Group.
German shipowner and ship management company E.R. Schiffahrt will gain another three vessels from Maersk Line under management. As such, Maersk Line will have nine vessels under management with the German company.
Arne Blystad seems to have expanded his business to the container market. According to several public registers, Blystad has established the company Songa Container along with a Norwegian partner. So far, the fleet counts three vessels, according to data from Vesselsvalue.com.
100 companies are responsible for more than 70 percent of industrial emissions of greenhouse gases since 1998, reveals a new investigation. Maersk Group is included on the list of the biggest polluters which is particularly dominated by oil companies.
Cosco Shipping's acquisition of OOCL this Sunday was the latest in a long line of mergers that have significantly altered the container industry over the past five years. See which mergers have taken place here.
Tung Chee-hwa will see his personal net worth increase by around USD 400 million according to the Bloomberg Billionaires Index, based on the USD 6.3 billion Cosco offered for his family's Orient Overseas International Ltd.
The huge consolidation wave sweeping the container industry is about to wind down with Cosco Shipping's billion-dollar acquisition of OOCL, say several analysts to ShippingWatch. Two players look set to become losers in the wake of the trend.
Cosco is expecting a profit in the first half of the year from Cosco Shipping Holdings, which covers the Chinese container carrier's business. Improved freight rates will provide a boost, anticipates the company.
The large-scale cyber attack on Maersk crippled significant parts of the group and characterized a week in which future capital and ownership conditions also took center stage among the week's top picks on ShippingWatch.
Companies can once again book Maersk's vessels to transport their cargo, informs the Danish shipping giant. And APM Terminals' container terminals are operational again although there could be delays, says Maersk Group in its latest update about the massive cyber attack Tuesday.
According to Alphaliner, there does not seem to be much factual evidence to support the claims that the container merger between Japan's three biggest carriers will disrupt competition in South Africa.
Maersk customers such as Jysk and DSV are currently trying to get clarification concerning the situation following Tuesday's cyber attack. If worst comes to worse, they could look toward other carriers, they tell ShippingWatch.
The hacker attack on Tuesday against the Maersk Group constitutes a massive test of the group's security procedures, analyst Lars Jensen of Seaintelligence Consulting tells ShippingWatch. The problems are now accumulating.
A hacker attack has triggered a large-scale crash of Maersk Group's IT systems, the company tells ShippingWatch. It remains unknown how the group's customers will be impacted. APM Terminals has also been struck in ports in the US and Netherlands.
Just as a wave of mergers and acquisitions has consolidated container carriers in recent years, the many German tonnage owners need to join forces. One of the premier personalities in German shipping, Claus-Peter Offen, tells ShippingWatch that he is ready to spearhead the process.
Starting next month, Maersk Line's customers will be able to monitor where the carrier's reefer containers are located as well as the internal temperatures. This comes in response to requests from customers, says CCO.
The container carriers' higher freight rates do not constitute an actual problem for Danish freight forwarder Scan Global Logistics. But the CEO tells ShippingWatch that he hopes prices will soon stabilize.
APM Terminals lays off 160 in Gothenburg in a move to end the protracted port labor conflift. Shipowners look to postpone the ballast water convention by two years. Shippers worry about a shortage of reefer containers. Oil is headed for USD 40. Here are this weeks top picks.
Newly-established container carrier MPC Container Ships plans to have 35 to 50 feeder vessels within a year. "This would be a good starting point for us," the CEO of the Oslo-based company tells ShippingWatch.
Shippers in the Global Shippers' Forum were already sounding the alarm this March about the consequences for importers and exporters of goods such as food. Their concerns surfaced in relation to the merger of Maersk Line and Hamburg Süd and have only grown in the months since.
Chinese Cosco Shipping has ordered 14 new container vessels for USD 1.8 billion in order to boost its fleet between Asia and Europe, where carriers such as Maersk Line, MSC and CMA CGM currently dominate.
Evergreen Line has entered a partnership with Alibaba for online booking of container transport. The Taiwanese carriers thus follows suit behind competitors such as Maersk Line, CMA CGM, and Cosco, all of which have formed similar arrangements with the Chinese IT behemoth.
Tim Wickmann steps down as CEO of Maersk Line's Asian subsidiary MCC and leaves the Maersk Group after 27 years. He will be replaced by an experienced Maersk exec who takes over as CEO of the Singapore office in August. Also, a new head of Southeast Asia has been appointed.
Spot rates from China to South America rose to their highest level since 2009 after a doubling over the last three months. North-to-South rates weighed down Maersk Line in particular in the first three months of the year.
Even though China's Cosco and Orient Overseas in Hong Kong reject whispers of an imminent merger worth around USD 4 billion, it is likely only a matter of time before a deal is settled, reports Drewry and others.
MSC is taking over full ownership of one of Brazil's most important export ports in Portonave for almost USD 400 million. The container carrier thus solidifies the concentration of carriers in Latin America's largest economy.
A bomb threat on a Maersk vessel in the US, a shortage of containers in Latin America's largest economy, and several member states urging the EU not to change national subsidy rules were among this week's top stories on ShippingWatch.
Is Maersk Line now also a bank? The carrier has, at any rate, doubled its lending business to customers in just one year, project manager Vipul Sardana tells ShippingWatch. The Trade Finance project is now launched in the US. After the US comes UAE.
The global container carrier and major customer of APM Terminals in Port of Gothenburg now says that it is considering rebooking close to 50 percent of its port calls. The announcement follows the gridlocked conflict between dockworkers in the port and APM Terminals.
Food goods are towering up on Brazil's east coast and every part of the supply chain from exporters, to port terminals, and warehouses are struggling with a lack of refrigerated containers. Carriers such as Maersk Line, MSC, and Hamburg Süd have moved containers to other locations in Latin America where rates are higher, critics tell ShippingWatch.
A 48-hour strike has completely stalled one of Europe's most important container ports, Algeciras in Spain, until Friday morning. According to Spanish media, Maersk Line plans to permanently withdraw some of its volumes from the key port. MSC vessels have been rerouted.
MSC battled fierce competition for its North European business, as evident from the annual report 2016, in which the bottom line suffered a significant setback. The carrier expects to maintain a positive result for 2017.
Investment bank Jefferies expects that Maersk Line will improve its result for 2017 by USD 2 billion. This is 32 percent above consensus among analysts and twice as much as Maersk Line CEO Søren Skou has previously projected.
Arab boycott of Qatar with the potential to create difficulties for Hapag-Lloyd, the collapse of Germany's Rickmers Group, and tanker carriers such as Torm and Hafnia in play in an expected consolidation wave, were among this week's top stories on ShippingWatch.
The culture at Hamburg Süd is born at the intersection of independence and an anchorage in the habits of a German industrial dynasty, among these not to open the doors to the public. With Maersk Line's acquisition, one question in particular becomes pertinent.
It will be possible after all for Maersk Line and other container carriers to ship cargo to Qatar even though the country has been isolated by its neighbors, headed by Saudi Arabia, informs the carrier.
Revenue in container ports was so promising in the first half of the year that Drewry believes growth in the full-year 2017 could reach the highest level since 2011. Global growth is driving the market, notes the firm.
The difference in flow between head haul and back haul routes has increased significantly in the first half of the year, and carriers now face the biggest imbalance since 2014, writes SeaIntel in a new analysis.
The Maersk Group is about to release a strong interim report, in which Maersk Line's profits in particular will boost the overall results, note several analysts who add that this looks like CEO Søren Skou's last chance to prove that his plan is working.