Introduction
Maersk is a company that offers shipping and cargo services, supply chain, freight forwarding, and tracking solutions. As a global integrator, they combine their supply chain infrastructure with the power of their people and technology to drive end-to-end innovation that accelerates their customer success.
History
The company was established by A.P. Moller together with his father, Peter Maersk Moller, on April 16, 1904, in the town of Svendborg. During the second world war, the company’s 36 out of 46 ships were requisitioned by the warring countries and used in the war effort. About 150 seamen and 25 ships were lost during the war period.
Size
Maersk is one of the top 10 biggest shipping companies by TEU capacity. It has a total capacity of 4.1m TEU and operates a fleet of 708 vessels, including 307 own container vessels and 401 chartered container vessels. The company employs roughly 80,000 employees across operations in 130 countries.
Market Share
The company is one of the leading ship operators and has a 17% market share of the world liner fleet as of November 30, 2021. They have the highest market share among their competitors (Ahead of Mediterranean Shg Co by 0.2%)
Maersk’s Specialization
Maersk provides its customers with a wide range of services to meet their supply chain needs, including transportation services, digital solutions, supply chain and logistics solutions, and financial services. Among transportation services, ocean transports play a significant role. The company deals with four types of cargo: dry cargo, refrigerated cargo, special cargo, and dangerous cargo (“Ocean Transport”). The dry cargo includes technology and electronics, retail, automobiles, and machinery; it is the most frequently transported type of cargo at Maersk. The refrigerated cargo consists of food products and pharmaceuticals. Maersk uses local cold storage and special containers to deliver perishable goods on time and prevent wastage. Special cargo refers to overweight and oversized cargo. Maersk employs special equipment for the loading, transportation, and delivery of such goods. Finally, dangerous cargo includes hazardous chemicals; Maersk conducts screening and physical inspection of this type of freight to ensure the absence of misdeclared or undeclared cargo.
Performance of Maersk’s Ocean Transport
Ocean transportation makes a significant contribution to Maersk’s profitability and the prosperity of international trade. In 2020, the company received $29.2 billion in revenue from its ocean transport, which comprises the greatest share of its revenues (Maersk 37). As a result of COVID-19, Maersk saw a decrease in volumes, but since the freight rates increased, its revenues appeared to be higher than in 2019. The loaded volumes in 2020 were 12.6 million FFE, while the loaded freight rate was 2,000 USD/FFE (Maersk 38).
Maersk has a large fleet comprised of 301 own container vessels and 405 chartered ones (Maersk 41). The container ship capacity of its chartered vessels ranges from less than 2,999 to 14,999 TEU, while its own vessels have a wider range of capacity, varying from less than 2,999 to over 17,500 TEU (Maersk 41).
The company transports goods among countries in different parts of the world: North America, Latin America, Europe, the Middle East, and Asia. It has played a significant role in managing COVID-19 by quickly transporting personal protective equipment from China to the US market.
Works Cited
“Leading Ship Operator – Share Of The World Liner Fleet 2021 | Statista.” Statista, 2021, Web.
Maersk. 2020 Annual Report. 2020, Web.
“Ocean Transport.“ Maersk, Web.
“Our History.” Maersk, 2021, Web.
“The Ten Biggest Shipping Companies By TEU Capacity In 2020”. Ship-Technology.Com, 2021, Web.