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Blog Archives

Maersk opens new warehouse facility in Mexico

Maersk recently inaugurated a new 30,000m² facility in Tijuana, Mexico targeting cross-border trade and serving customers in the technology, automotive, retail, and lifestyle sectors.

Positioned strategically in Prisma XII, Pacifico Industrial Park, Baja California, the site capitalizes on Tijuana’s significance in the US-Mexico trade.

Benefiting from its proximity to major commercial ports like Los Angeles/Long Beach and Ensenada, the facility is strategically located just 15 km from the Otay Commercial Port and 20 km from the San Ysidro Commercial Port, facilitating efficient cross-border operations.

Aligned with the Manufacturing, Maquiladora, and Export Services Industry (IMMEX) program, the site offers various services including sorting, storage, cross-docking, inventory management, and value-added services like labelling, packaging, and order fulfillment. The warehouse facility is also equipped to handle e-commerce shipments under the Section 321 Shipment Type.

The facility boasts LEED Gold certification, featuring sustainable elements such as rooftop solar panels, 100% electric material-handling equipment, LED lighting, and efficient waste management systems.

“With a focus on IMMEX program services, inventory control, and seamless cross-border integration, we’re positioned to capitalize on the manufacturing landscape in Mexico and our commitment to delivering unparalleled service to our customers. By strategically leveraging our new warehouse in Tijuana, tailored to the complexities of cross-border trade, we’re better positioned to provide our customers in the region truly integrated logistics solutions,” stated Patricia Perez Salazar, managing director for Maersk in Mexico.

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Maersk strengthens its cold chain logistics network with new facility in India

Α.P. Moller–Maersk broke ground for its upcoming Cold Store facility at Mehsana, Gujarat, in the western part of India.

Being built exclusively for HyFun Foods, the brand-new facility will offer temperature-controlled storage solutions for perishable frozen processed food items.

Frozen food items need high quality, unbroken cold chain logistics solutions to preserve their integrity, according to Vikash Agarwal, managing director at Maersk South Asia, who said that “our new, state-of-the-art facility at Mehsana will be equipped with the highest standards of temperature compliance, with customised racking system to suit customer’s exact requirements, and modern technology to ensure top-notch operational accuracy.”

Maersk’s new Cold Store facility will be constructed close to the customer’s manufacturing facility and will serve as the mother Cold Store facility. The 14,700-pallet position facility will be built at the Fanidhar Mega Food Park and will be one of India’s largest single-shed cold stores. The large facility will help the customer store all the cargo in a single facility instead of multiple smaller facilities before dispatch.

Maersk’s existing integrated cold chain solution includes landside transportation to the port by road and rail, coordination at the port, customs clearances and ocean transportation for all export cargo.

The Danish transportation company also provides their customers with Captain Peter solution, a Remote Container Management system, that provides full visibility to the customer during cold chain transportation. It monitors temperature and other critical elements necessary to ensure integrity of cold chain logistics at the fingertip for the customer.

“Food security and quality are our top-most priority for ultimate customer satisfaction. To be able to deliver on those, we were looking at redesigning our supply chain model in a way where an unbroken cold chain becomes the backbone of how we move our processed food. Maersk’s single-window solution for the entire cold chain logistics strengthened by the brand new cold store facility simplifies supply chains for us,” commented Kamlesh Karamchandani, director of Sales & Marketing at HyFun Foods.

The facility will boast of operational and sustainable excellence using Ammonia refrigeration, which is a natural gas with zero Global Warming Potential (GWP) and will use high-efficiency compressors that operate with lower power consumption. PIR panels will be used at the cold store facility which are built for fire resistance and have lower thermal conductivity.

The facility will be equipped with modern warehouse management systems and will provide real-time visibility to the customer on inventory developments to let the customer make informed decisions on inventory management. The facility will adhere to the highest safety standards as well such as a human-friendly staging area and a robust fire detection and firefighting system.

Maersk will invest in solar energy to power the facility in a bid to ensure that the logistics solutions offered are in line with the decarbonising targets set up by the company for NetZero by 2040. Green Building requirements like rain harvesting, STP, and zero discharge are also a part of the construction and operations plan.

The facility will be built with world class design and engineering parameters adhering to all the compliance and quality requirements.

Source: Container News

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Maersk and Hapag-Lloyd to form new alliance

Two container giants, Denmark’s Maersk and Germany’s Hapag-Lloyd have signed an agreement for a new long-term operational collaboration.

The new “Gemini Cooperation” is expected to start in February 2025 with the ambition to deliver a “flexible and interconnected ocean network with industry-leading reliability”.

Hapag-Lloyd’s CEO said, “Teaming up with Maersk will help us to further boost the quality we deliver to our customers. Additionally, we will benefit from efficiency gains in our operations and joint efforts to further accelerate the decarbonisation of our industry.”

The new cooperation between the two companies will comprise a fleet pool of around 290 vessels with a combined capacity of 3.4 million TEUs with Maersk deploying 60% and Hapag-Lloyd the remaining 40%.

“We are pleased to enter this cooperation with Hapag-Lloyd, which is the ideal ocean partner on our strategic journey. By entering this cooperation, we will be offering our customers a flexible ocean network that will raise the bar for reliability in the industry. This will strengthen our integrated logistics offering and meet our customers’ needs,” commented Vincent Clerc, CEO of Maersk.

As a part of the agreement, the two companies have set the target of delivering schedule reliability of above 90% once the network is fully phased in.

As a consequence of joining this cooperation, Hapag-Lloyd will leave THE Alliance end of January 2025, when the 2M alliance of Maersk and MSC will also be terminated.

During 2024, Maersk and Hapag-Lloyd will plan the transition from their current alliances to the new operational cooperation, while service to customers will continue along existing agreements.


Source: Container News

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Maersk announces new peak season surcharges worldwide

Maersk has unveiled new peak season surcharges worldwide, which are going to take effect in January and February.

The Danish ocean carrier is introducing a Peak Season Surcharge (PSS) as per the below table with the effective date of 8 January, excluding Vietnam and Taiwan. The surcharge from Vietnam to West Africa will be effective on 18 January and the surcharge from Taiwan to West Africa will be effective on 2 February.

Charge Code Origin Destination Container Size/type Rate Charge Basis
PSS
Brunei,  China,  Hong Kong,  Vietnam,  Indonesia,  Japan,  Cambodia,  South Korea,  Laos,  Myanmar,  Malaysia,  Philippines, Singapore, Thailand, East Timor, Taiwan
Angola, Cameroon, Congo, Democratic Republic of the Congo, Equatorial Guinea, Gabon, Namibia, Central African Republic, Chad
ALL20
ALL40
45HDRY
US$100
US$200
US$200
Per Container

PSS

Brunei, China, Hong Kong, Vietnam, Indonesia, Japan, Cambodia, South Korea, Laos, Myanmar, Malaysia, Philippines, Singapore, Thailand, East Timor, Taiwan
Nigeria
ALL20
ALL40
45HDRY
US$150
US$300
US$300
Per Container

PSS

Brunei, China, Hong Kong, Vietnam, Indonesia, Japan, Cambodia, South Korea, Laos, Myanmar, Malaysia, Philippines, Singapore, Thailand, East Timor, Taiwan
Burkina Faso, Benin, Ivory Coast, Ghana, Niger, Togo
ALL20
ALL40
45HDRY
US$300
US$600
US$600
Per Container

Additionally, Maersk will apply the following new peak season surcharges from/to Far East Asia to/from Indian Subcontinent.

Charge Code Origin Destination All 20 containers All 40 containers Effective date
PSS
Brunei, China, Hong Kong, Vietnam, Indonesia, Japan, Cambodia, South Korea, Laos, Myanmar (Burma), Malaysia, Philippines, Singapore, Thailand, Timor Leste, Taiwan
Afghanistan, India, Sri Lanka, Maldives, Nepal, Pakistan
US$200
US$400
15 January
PSS
Vietnam
Afghanistan, India, Sri Lanka, Maldives, Nepal, Pakistan
US$200
US$400
23 January
PSS
Taiwan
Afghanistan, India, Sri Lanka, Maldives, Nepal, Pakistan
US$200
US$400
15 January
Surcharge Origin Destination Currency All 20 Dry containers
PSS
India, Maldives,  Pakistan, Sri Lanka, Nepal
Brunei, Cambodia, China, Hong Kong, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar (Burma), Philippines,  Singapore, Taiwan, Thailand, Timor Leste, Vietnam
US$
100

For the latest table, Maersk has noted that the effective date will be 8 January, excluding Vietnam and Taiwan, where the surcharge will start on 18 January and 2 February respectively.

Furthermore, the Copenhagen-based ocean carrier will implement another PSS from Eastern Mediterranean to North Europe, United Kingdom and Scandinavia, effective from 10 January.

This surcharge will be as follows:

Surcharge Origin Destination Container Type Currency New tariff levels
PSS
Egypt, Israel, Lebanon, South Turkey (Mersin and Iskenderun), Cyprus
Estonia, Finland, Latvia, Lithuania, Poland, Belgium, Germany, Netherlands, Denmark, Norway, Sweden, France, Ireland, United Kingdom
ALL_DRY & NOR
US$
200

Moreover, Maersk will introduce a peak season surcharge from North Europe, South Europe, Mediterranean, Adriatic and North Africa to United States and Canada, effective from 5 February.

Origin Destination Effective Date Container Type Currency New tariff levels
North Europe
United States and Canada
5 February
ALL DRY & NOR
US$
US$500/TEU
US$750/FEU
South Europe, Mediterranean, Adriatic and North Africa (Excluding Turkey, Lebanon, Egypt, Israel, Romania, Bulgaria and Georgia)
United States and Canada
5 February
ALL DRY & NOR
US$
US$500/TEU
US$750/FEU

Source: Container News

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MSC and Maersk continue to send ships for break-up

The world’s two largest liner operators have continued to scrap aged ships as the freight market has normalised to pre-Covid-19 levels.

Shipbrokers said that this month, MSC has sold the 1993-built 3,720 TEU MSC Erminia and 1999-built 1,837 TEU MSC Lana II for US$505/ldt and US$520/ldt respectively. As with the 1990-built 4,814 TEU MSC Federica, which was sold for US$515/ldt, the ships were sold into India for recycling. Year to date, MSC has scrapped seven ships.

Additionally, Maersk Line sold the 1998-built 2,890 TEU Maersk Patras for an undisclosed price, on an “as is” basis, with the buyer arranging to collect the vessel in Jebel Ali port. So far this year, the Danish carrier has scrapped three vessels.

Greek broker Intermodal stated that in India, local steel prices rose slightly last week, but this is not expected to be sustained as the monsoon season continues and steel mills are experiencing disruptions.

“Local breakers have seen vessels for scrap ending up in other destinations as offer prices in India remain high,” observed Intermodal.

Cash buyer Wirana Shipping Corporation said that traders are avoiding restocking steel for post-monsoon orders.

Wirana said, “In view of lack of finished steel demand, it would need to be seen whether the increase in billet prices and local steel plate prices seen this week are sustainable for secondary steel mills and whether they continue at same levels in coming weeks.”

Besides the vessels sold by MSC and Maersk, intra-Asia carrier Straits Orient Lines has continued to trim its fleet, selling the 1997-built 1,730 TEU SOL Straits into Bangladesh for US$592/ldt. The firm price was due to the ship having 250 tonnes of leftover bunkers, although Bangladeshi recyclers have not been able to buy many vessels due to the scarcity of letters of credit issued by banks there. In January, Straits Orient Lines sold 1995-built 1,728 TEU SOL Delta for US$587/ldt for recycling in India.

Source: Container News

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Carriers attempt PSS for India-US cargo after modest GRI success

Container lines appear to have regained some bargaining power to lift freight rates on the India-US trade lane after managing partial recovery from recent general rate increase (GRI) attempts.

Mediterranean Shipping Co. (MSC) and CMA CGM have lined up a new round of peak season surcharges (PSS) for India-US shipments.

MSC will apply a PSS of US$500 per container for all cargo from India to the US and San Juan (Puerto Rico), from 15 August. The Geneva-based carrier said the surcharge is necessary to “maintain a high level of reliability and efficiency of its services to the needs of customers.”

French liner CMA CGM has announced a PSS levy of US$350 per 20-foot/40-foot box and US$550 per 45-foot hi-cube box for Indian container loads to the US East and Gulf coasts, from 1 September.

Other major carriers, including Maersk and Hapag-Lloyd, also plan to hike rates on the same trade through general rate increase (GRI) activity.

For shipments from India to the US and Canada, Maersk will attempt a GRI of US$350 per 20-foot, US$500 per 40-foot, US$750 per 45-foot hi-cube and US$1,000 per 40-foot reefer box, also starting 1 September.

Hapag-Lloyd has instituted a hike of US$200 per container for all types of Indian cargo to the US East Coast.

“This GRI/general rate adjustment is applicable to all containers gated in full from 1 September and is valid until further notice,” stated the carrier in a customer advisory.

However, glaringly, carriers have adopted a pragmatic approach – seeking more moderate increases, instead of hefty amounts that typically hit the market in the lead up to so-called peak shipping season.

Indian exports have seen sharp declines in recent months, a trend industry observers believe is unlikely to turn around any time soon amid weakening demand conditions across major economies. Indian goods exports by value slumped 22% year-over-year in June, according to the latest government data.

Meanwhile, carriers — offering regular calls out of India’s west coast — continue to deal with considerable cargo flow challenges at Mundra Port, India’s largest box gateway, following recent cyclone-induced disruptions.

Customs house brokers at Mundra have expressed serious concerns over empty container pickups and drops from storage yards, noting the bottlenecks are straining cargo flows for exporters/importers.

“We suggest shipping lines set up new empty yards inside the port area with all required equipment and good infrastructure to enable us to locate empty containers inside the port area and it will also reduce the cost of transportation and save valuable resources,” noted the Mundra Customs Brokers’ Association in a communique to all stakeholders.

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Maersk sees lower financial figures in second quarter

A.P. Moller – Maersk reports a second quarter of 2023 ahead of expectations with revenue standing at US$13 billion, compared to US$21.7 billion in the same quarter last year.

Ocean revenue decreased to US$8.7 billion, driven by a decrease in freight rates and loaded volumes. The company noted that while the volume and rate environment stabilised at a lower level during the second quarter, Ocean sector continued to be impacted by lower demand, driven by a significant inventory correction in particular in North America and Europe.

Furthermore, revenue in Logistics & Services was US$3.4 billion with the sector being impacted by lower volumes due to the continued destocking and weaker consumer demand, as well as low rates.

Moreover, revenue in Terminals decreased to US$950 million, influenced by the normalisation of storage revenue and lower volumes amid lower consumer demand and less congestion in North America.

Revenue

USD million 2023 Q2 2022 Q2
Ocean
8,703
17,412
Logistics & Services
3,386
3,502
Terminals
950
1,124
Towage & Maritime Services
504
579
Unallocated activities, eliminations, etc.
-555
-967
A.P. Moller – Maersk consolidated
12,988
21,650

“The ongoing market normalisation continued through the quarter leading to lower volumes and lower rates,” said the Danish carrier, which raised its financial outlook for the year, expecting now underlying EBITDA of US$9.5 – 11 billion and underlying EBIT of US$3.5 – 5 billion despite a weakened second half market outlook.

Guidance
EBITDA Underlying
(Previously: 8.0-11.0)
US$9.5-11 billion
EBIT Underlying
(Previously:2.0-5.0)
US$3.5-5 billion
Free cash flow at least
(Previously:2.0)
US$3 billion
CAPEX guidance 2022-2023
US$9-10 billion
CAPEX guidance 2023-2024
US$10-11 billion

The profitability during the second quarter was 12.4%, significantly lower compared to the strong Q2 2022. Additionally, Maersk announced that Q2 EBITDA fell to US$2.9 billion and EBIT declined to US$1.6 billion.

Vincent Clerc, CEO of Maersk, commented, “The Q2 result contributed to a strong first half of the year, where we responded to sharp changes in market conditions prompted by destocking and subdued growth environment following the pandemic fuelled years.”

He went on to highlight, “Our decisive actions on cost containment together with our contract portfolio cushioned some of the effects of this market normalisation. Cost focus will continue to play a central role in dealing with a subdued market outlook that we expect to continue until end year.”

Clerc concluded, “While we step this agenda further up, we are unwavering in our transformation and continue to invest in and deliver truly integrated logistics solutions to our customers and amplify their supply chain resilience for the uncertain times ahead.”

Earnings Before Interests, Taxes, Depreciation and Amortization (EBITDA)

USD million 2023 Q2 2022 Q2
Ocean
2,259
9,598
Logistics & Services
311
337
Terminals
331
400
Towage & Maritime Services
59
81
Unallocated activities, eliminations, etc.
-55
-89
A.P. Moller – Maersk consolidated
2,905
10,327

Earnings Before Interests and Taxes (EBIT)

USD million 2023 Q2 2022 Q2
Ocean
1,205
8,526
Logistics & Services
115
234
Terminals
269
316
Towage & Maritime Services
71
16
Unallocated activities, eliminations, etc.
-53
-104
A.P. Moller – Maersk consolidated
1,607
8,988

Source: Container News

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CMA CGM could displace Maersk as second-largest container line

French carrier CMA CGM is poised to overtake Maersk Line as the world’s second-largest liner operator, with its aggressive newbuilding orders and second-hand vessel purchases, according to Alphaliner’s report.

CMA CGM’s current fleet comprises 625 ships of 3.49 million TEUs, while it has 122 ships of 1.24 million TEUs on order.

In comparison, Maersk Line’s fleet, which stands at 4.14 million TEUs, has just 32 ships of 400,000 TEUs under construction. If the Danish operator, which was displaced by Mediterranean Shipping Company (MSC) at the top of the liner rankings in 2022, does not acquire more vessels, by 2026, it will have just 4.54 million TEUs when all its new ships are ready, while CMA CGM would surpass Maersk Line with 4.73 million TEUs.

Alphaliner remarked, “As per mid-July, the French Line’s orderbook stands at 35.5% of the carrier’s existing fleet capacity. Unlike MSC, which accelerated its fleet expansion through newbuilding and by means of an absolutely massive second-hand buying programme, CMA CGM has taken a somewhat different approach and it also procured numerous mid-sized vessels through a tidal wave of charters. This includes both ships from the spot market and new tonnage that will join the carrier upon delivery.”

CMA CGM’s operated fleet first crossed the 1 million TEUs threshold in July 2009 and it took the carrier five years to pass the 2 million TEU milestone in July 2016.

At the time, CMA CGM’s takeover of Neptune Orient Lines (APL) propelled the group’s liner fleet from 1.79 million TEUs to 2.34 million TEUs.

Like MSC, CMA CGM began active purchases of pre-owned ships when freight rates began ascending to historical highs in 2020. The French line has purchased 427,000 TEUs of ships of all sizes. CMA CGM has also committed to 170 vessel charters since the start of 2023 and has been the most aggressive charterer among liner operators.

In a weakening market, CMA CGM might very well let go of older, less efficient ships in 2024, when charters expire. The company is scheduled to receive about 500,000 TEUs of newbuildings from now until the end of 2024.

In 2025, fleet additions will be relatively low at just 200,000 TEUs, before doubling to 400,000 TEUs in 2026. Assuming that half of CMA CGM’s orderbook is for growth and half of it will be for fleet replacement, the carrier’s fleet would stabilise at 4.2 million TEUs in late 2026.

The same assumptions would still put Maersk slightly ahead at 4.34 million TEUs, but the Danish line has repeatedly stated that it does not plan to grow its fleet beyond its current 4.14 million TEUs. Maersk Line has emphasised that its newbuildings aim to replace conventionally-fuelled tonnage with more modern, eco-friendly vessels powered by green methanol.

Source: Container News

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Maersk injects additional vessels into Asia – Europe services

Maersk has announced changes to its Asia – Europe network aiming to improve the reliability of its services and enhance their fuel efficiency.

As of week 23, Maersk has decided to inject one vessel into each of the AE5, AE10, AE7, AE55, AE11, AE12, AE15 services and two vessels into the AE6 service.

“The added vessels will allow us to reduce speeds providing needed buffer to absorb schedule challenges, improving reliability, and decreasing the risk of void sailings,” said Maersk in a statement. The speed reductions are also expected to reduce emissions significantly, according to the ocean carrier.

The aforementioned changes announced by the Danish shipping company are anticipated to have an impact on average transit times. Maersk noted that the average transit time from Asia to North Europe will be increased by three days, from Asia to the Mediterranean by two days, from North Europe to Asia by three days and from the Mediterranean to Asia by three days.

Source: Container News

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Maersk adds new weekly rail service in India

A.P. Moller – Maersk has announced another weekly, dedicated rail service, the ‘Pratigya Express’, from Sonipat Inland Container Depot (ICD) in National Capital Region (NCR) to APM Terminals Pipavav Port on the western coast of India in Gujarat.

Maersk’s new ‘Pratigya Express’ service on the Western Dedicated Freight Corridor (DFC) will move 90 TEUs every week.

“The NCR is abundant with retail and rice exporters who need a regular connection from their manufacturing facilities to the consumers in the western market,” commented major Jyoti Joshi Mitter, head of rail at Maersk India.

He added, “Through our dialogues with our customers, we realised that they faced two challenges – either they don’t have a fixed schedule for departure from Sonipat ICD, and once they get it, they do not necessarily make it to the right vessel connection at the port.”

According to Maersk, the ‘Pratigya Express’ will move cargo from Sonipat ICD to APM Terminals Pipavav Port with a transit time of two and half days.

Also, from there, the cargo will have the option to connect on services such as the Shaheen Express, which will be launched in the coming days, or the MECL. Both of these services will then be able to take the cargo to the Middle Eastern or European markets.

Source: Container News

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