Maersk Line’s container volumes drop
By SwizStick • Aug 30th, 2007 • Category: SeafreightVia CargoNewsAsia, container volumes
over the Transpacifc have dropped 12% in the first half of the year:
“The financial result on the transpacific trades is unsatisfactory as the costs of containerised transport to North America and especially to the inland destinations, are not adequately compensated through freight rates,” Maersk CEO Jess Soderberg told investors.
The Danish line’s interim results were released today and showed that in the first half year 2007, Maersk Line transported close to three million FEU, an increase of just three percent compared to the same period in 2006.
The global container market is growing at 9 percent, but Maersk’s focus at the moment is on improving earnings and not on boosting volumes. This it achieves by moving tonnage from loss-making trades to trades with better earnings.
That certainly makes sense, and according to the article Maersk Line’s net profit is up. While it makes sense in the short term to cut capacity where you are losing money, and certainly the hot market right now is Asia-Europe, Maersk should be cautious that they don’t cut too much Transpacific capacity or they could lose valuable market share in the future.
Stumble it!
Related Posts:
SwizStick is Co-Contributor
Email this author | All posts by SwizStick
© 2008