345

Business

Maersk preparing for growth

admin
November 18th, 2011


This article is more than 13 years old.

Shipper increases capacity and sets goal of above-average profit margin

 

The worldÂ’s largest shipping firm is gearing up to capture an even larger share of the global container shipping market.

AP Moller-Maersk (APM) managing director Nils Smedegaard Andersen said last week during the presentation of the companyÂ’s third quarter report that despite an industry-wide problem of overcapacity, the company was ready to grow.

“These are hard times for shipping,” he said. “But there are also good opportunities to improve our market share.”

One sign of the companyÂ’s positive outlook was that it plans to expand capacity by 30 percent, despite a current overcapacity. The increase in capacity also comes as APM said it expects downward pressures on freight rates and uncertain income levels to continue during the next few years.

During the third quarter, APM outpaced the market with a 16 percent increase in shipping activity. The company is already taking market share away from its competitors, but Andersen underscored that it had not done so by lowering its rates.

Much of the success of APMÂ’s container unit, Maersk Line, is due to its ability to maintain one of the best profit margins in the industry. In the third quarter report, the company stated that it aims to maintain a profit margin five percent over the industry average.

APM posted a profit margin of -2 percent in the third quarter, a worsening of its second quarter -1 percent margin. Even with the decline, Maersk had a higher profit margin than any of its competitors that had released their third quarter reports at the time of going to press.

Published in collaboration with financial newsletter Ã˜konomisk Ugebrev.

Join the debate – join us on Twitter or Facebook, or leave a comment below.

SEE RELATED STORIES

Business image winners and losers

Maersk buys major stake in Brazilian offshore oil


Share

Most popular

Subscribe to our newsletter

Sign up to receive The Daily Post

















Latest Podcast

A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”