Maersk Line will save USD 350 million a year with 2M

The expected collaboration between Maersk Line and MSC will provide the carrier with annual savings of USD 350 million, according to Maersk's expectations.

BY KATRINE GRØNVALD RAUN AND OLE ANDERSEN

Maersk Line could achieve significant cost reductions if authorities in the US and China approve the announced collaboration with Swiss MSC.

If the alliance is cleared, Maersk Line expects annual savings of around USD 350 million, says the carrier in the material distributed at the Maerk Group's Capital Markets Day on Wednesday. Maersk Line also stresses that these expectations depend on the approval from the US Federal Maritime Commission, FMC, as well as China, both of which are currently studying the collaboration.

The material also includes the carrier's expectations regarding new capacity. From 2015 to 2019, Maersk Line expects to invest an average of USD 3 billion in new ships.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

"Current orderbook not sufficient to grow with market - 425,000 teu new capacity needed for delivery in 2017-2019," says the Maersk Group in the introduction to its Capital Markets Day in Copenhagen today, Wednesday, September 24.

This corresponds to more than 23 of Maersk Line's largest vessels, Triple-E, which has a capacity of 18,000 teu.

The new ships will support Maersk Line's position with low costs by being the biggest carrier on all services where the company operates. Maersk Line notes that the surplus of smaller ships in the container segment makes it attractive to charter ships there.

The container carrier adds that Maersk Line is currently able to deliver on the medium-long term, and that it plans to invest in disciplined manner.

Maersk Line has performed investments for an average USD 2.3 billion per year in the period 2003-2013, though the figure for 2013 was down at USD 1.6 billion.

The graph comes from "Towards a premium conglomerate" and is based on an expected annual growth in demand of 4-6 percent.

Source: Maersk Line

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

Maersk and MSC reveal the 2M network

China ready to surpass Triple-E

DNB: Maersk is looking to exit tanker market completely

Alphaliner: The first battleground for the major alliances

Maersk and MSC reveal the 2M network
For subscribers
China ready to surpass Triple-E
For subscribers
DNB: Maersk is looking to exit tanker market completely
For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

Newsletter terms

Front page now

Container

Cascading of huge vessels poses a risk to intra-Asia business

Ocean Network Express sees growth rates of up to ten percent on some intra-Asian trades, Region Head South Asia Colin de Souza, tells ShippingWatch in an interview. One thing may alter the picture.

For subscribers

Carriers

Singapore shipowners on green transition: Business comes first

For subscribers

To identify where the biggest savings can be made, Wärtsilä can create so-called digital twins of an existing vessel. | Foto: Sune Høegh, Mediaspektrum

Suppliers

Wärtsilä sees more carriers improving efficiency instead of switching fuel

For subscribers

The US Coast Guard is now mandated to investigate possible violations on foreign-flagged vessels in US waters. | Foto: Ben Margot/AP/Ritzau Scanpix

Container

US Coast Guard strengthens measures against violations on commercial ships

For subscribers

Tanker

Maersk Tankers moves into new segment with latest pool

For subscribers

MSC did not violate US law when it charged customers a congestion fee during the pandemic, according to a new ruling from the US Federal Maritime Commission (FMC). | Foto: Sina Schuldt/AP/Ritzau Scanpix

Container

MSC wins first case on congestion charge to customer

For subscribers

Orders for LNG and methanol ships increased over summer
The yards’ construction of ships that can run on alternative fuels has grown this summer, according to DNV. Furthermore, another fuel type may soon make its debut.
For subscribers
Typhoon closes 12 shipping routes off southern Taiwan
Local authorities expect the typhoon to hit Taiwan on Thursday, but large parts of traffic have already been shut down.
For subscribers
Small feeder ships headed for extinction in European market
The order book for new feeder vessels, especially the smaller ones, to the European market is almost non-existent, writes Alphaliner.
For subscribers
Maersk's new methanol venture moves forward with project by Suez Canal
C2X and the Egyptian government sign a framework agreement on the next steps for large-scale production of the green fuel in the country.
For subscribers
Three new cars stacked in one shipping container to reduce long waiting times
The major port company DP World and a Chinese car manufacturer have found a new way to put more cars in each container. This will reduce supply chain issues.
For subscribers
Liquidation company puts an end to crisis in North German shipping bank
EUR 4.7bn in non-performing loans from the former HSH Nordbank have now been sold by a public liquidation company that has cleaned up after the North German shipping crisis.
For subscribers

Singapore shipowners on green transition: Business comes first

Singapore Shipping Association (SSA) supports the IMO’s revised green transition requirements, but business will come first, says SSA President Caroline Yang in an interview with ShippingWatch.

For subscribers

Container

MSC wins first case on congestion charge to customer

The ruling shows that the Swiss shipping company is not obliged to justify so-called congestion charges that it imposed on companies during the pandemic.

For subscribers

”The automotive industry has experienced significant changes and supply chain challenges in the last few years globally, and in Türkiye that ranged from microchip to RoRo capacity shortages. I’m proud that our team could implement an alternative solution,” says Rashid Abdulla, CEO of DP World Europe. | Foto: Casper Dalhoff/Ritzau Scanpix

Carriers

Three new cars stacked in one shipping container to reduce long waiting times

The major port company DP World and a Chinese car manufacturer have found a new way to put more cars in each container. This will reduce supply chain issues.

For subscribers

Tanker