Maersk Expects Container Shipping Tailwind to Last Amid High Demand
Denmark's Maersk said on Wednesday it expected its "exceptionally strong" performance in the first quarter to continue for the rest of the year, driven by high demand for shipping containers from China to the United States.Maersk, which handles about one in five containers shipped worldwide, said there were not enough ships available in the world to meet a surge in consumer demand, resulting in record-high freight rates.The firm's shares traded 4% higher at 0921 GMT, near a record high reached last week."The situation today is that our customers are trying to meet a very…
Maersk Lifts Outlook on Surging Demand
Shipping group Maersk lifted its full-year forecasts after a strong first-quarter performance driven by high demand which has led to supply bottlenecks and higher freight rates.Shares in Maersk rose 5% in early trading.Maersk raised its outlook for underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $13-15 billion from $8.5-10.5 billion.It expects underlying EBIT of $9-11 billion, up from 4.3-6.3 billion previously, Maersk said in a statement released late Monday."The continued strong performance is mainly driven by the continuation of the exceptional market s
Profiles in Training: Ken Chapman Senior Instructor, Maersk Training
Ken Chapman has led as deep and as broad of a maritime and offshore life as possible, an accrued experience and knowledge including being part of the team that had to coordinated during one of the offshore oil and gas industry’s worst disasters ever: the Piper Alpha. Today he reflects with Offshore Engineer on how these experiences helped drive him into a career in training, today as the Senior Instructor, Maersk Training.Ken, to start can you give an overview of your career with insights on your current position?My working life started in the Merchant Navy (MN) (the U.S.
Svitzer Americas Opens Regional HQ in Panama
Maersk's towage arm Svitzer announced it has opened a new Americas regional headquarters in Panama City.Svitzer said it decided early last year to relocate its Americas headquarters from Miami, U.S. to Panama and move into the Panama Design Center, which also houses other entities of the Maersk Group including Sealand Americas, APM Terminals, Hamburg-Sud, Twill, and Maersk Liner Operations Clusters.Arjen van Dijk, managing director of Svitzer Americas, said, “Panama is an important, strategic maritime hub with good infrastructure and easy connections to nearby countries and ports.
Global Supply Lines Struggle to Clear Container Backlog After Suez Chaos
A backlog of container ships carrying consumer goods has grown in some key strategic ports after a near week-long blockage in the Suez Canal, adding to ongoing disruptions to global trade, industry sources say.Dozens of container ships were stuck when the 400-metre-long (430-yard) Ever Given ran aground in the canal on March 23, with specialist rescue teams taking almost a week to free the vessel.The suspension of sailings through the waterway left shipping companies - including container lines - with millions of dollars in extra costs…
Backlogs from Suez Closure Could Take Months to Clear
The stranding of a container ship in the Suez Canal has created disruptions in the global shipping industry that could take weeks and possibly months to clear, top container shipping lines said.Around 30% of the world’s shipping container volume - including goods like sofas, consumer electronics, apparel and shoes - moves through the 193 km (120 miles) Suez Canal daily. Empty containers, which Asian factories need to ship goods, are also caught up in the backlog.“Even when the canal gets reopened…
OPINION: Blockchain can Revolutionize the Shipping & Logistics, but is it Ready?
The pandemic led to a disruption of the global sectors that also included the ocean trade. International trade witnessed an extensive impact on operations, causing a sharp decline in trade activities worldwide. Only a few technology-driven service providers managed to overcome some of the Export and Import industry's challenges during the pandemic. Interestingly, however, the exporters and importers' stumbling-blocks could have been handled efficiently if the entire ecosystem was backed by digital infrastructure.
Ship Blocking Suez Canal Could Be Stuck for Weeks
A containership blocking the Suez Canal like a "beached whale" may take weeks to free, the salvage company said, as officials stopped all ships entering the channel on Thursday in a new setback for global trade.The 400-meter Ever Given, almost as long as the Empire State Building is high, is blocking transit in both directions through one of the world's busiest shipping channels for oil and grain and other trade linking Asia and Europe.The Suez Canal Authority (SCA) said eight tugs were working to move the vessel…
Ever Given Grounding Causes Vessel Logjam In and Near the Suez Canal
Dozens of ships carrying everything from oil to consumer goods have been delayed by the grounding of a vessel in the Suez Canal, and companies may have to reroute cargoes around Africa if the blockage extends beyond 24 hours, shipping sources said.Efforts were underway on Wednesday to refloat the 400-meter, 224,000-tonne Ever Given, which got stranded on Tuesday morning after losing the ability to steer amid high winds and a dust storm.Shipping sources say the grounding has disrupted regular voyages through the Canal…
Oil Demand Drag Takes a Toll on Tankers
U.S. refiners are scaling back on hiring ships for longer periods to save on costs in another sign of uncertainty over when global oil demand will return to pre-COVID levels, shipping and trade sources say.The global rollout of coronavirus vaccines and the expectation that government-offered stimulus packages will boost the world economy has raised expectations of a recovery in oil consumption. But fuel demand remains sluggish, keeping oil refiners under pressure and looking for ways to limit further losses.The International Energy Agency…
CMA CGM Sees Strong Shipping Demand Continuing in First Half
Container shipping group CMA CGM said on Friday that it expected activity to remain strong in the first half of this year after brisk demand for consumer goods boosted its profits at the end of last year.France-based CMA CGM said its fourth-quarter earnings before interest, tax, depreciation and amortization (EBITDA) reached $2.23 billion, compared with $1.01 billion in the year-earlier period.Quarterly group net profit came to $1.0 billion.
Maersk Backs Plan for Green Ammonia Plant in Denmark
Shipping group Maersk said on Tuesday it was among a group of companies backing a plan to build Europe's largest green ammonia plant in Denmark as part of its ambition to shift to carbon-neutral ship fuel.The project, led by fund management firm Copenhagen Infrastructure Partners (CIP), will convert green power from North Sea offshore wind parks to zero-carbon ammonia that can be used to power ships and as agricultural fertilizer.Maersk said last week it would accelerate plans to decarbonize seaborne container shipping by putting the world's first vessel powered by carbon-neutral fuel into ope
Cargill, Maersk Tankers Launch Bunker Procurement Service
Cargill and Maersk Tankers are aiming to unlock more competitive and transparent bunker pricing and improved customer service through a new strategic partnership combining their bunker volumes, offering a new bunker procurement service to tramp shipping companies and trading houses. The initial goal is to procure bunker fuel for Cargill and Maersk Tankers’ combined fleet, while aiming to attract additional customers in the coming months. The service will leverage Cargill’s in-house bunker expertise and Maersk Tankers’ commercial and operational capabilities and will launch on April 1…
Demystifying Cyber Security
Recent cyber attacks to the US Government, the IMO, Maersk, amongst others has caused the world to pay attention to criminal cyber activities by foreign states, terrorists, and criminals. The cyber attack against CMA CGM shut down services for close on two weeks. Two days later, on October 30th the IMO was held hostage by a cyber attack. These attacks follow attacks earlier this year against MSC and COSCO.As of January 1, 2021 all vessels that have a safety management system must address cyber security in order to maintain ISM certification.
Port of Baltimore Bests Its Container Moves Record
The Helen Delich Bentley Port of Baltimore reports it has again topped its record for most container moves from a single ship.The 6,000 container moves conducted by longshore workers from the Maersk Edinburgh at the Seagirt Marine Terminal this week are the most ever in the port's the 315-year history. Maersk Edinburgh arrived at the port on Monday, February 8, and left early Thursday, February 11. The final container move was completed at 9:40 p.m. Wednesday.The new high mark—which counts the number of times an imported container is unloaded from a ship…
Maersk Boosted by Trade Recovery, But Misses Forecasts
A surge in demand for goods like furniture and exercise equipment from locked-down consumers has sparked a jump in shipping rates, boosting profits for Danish freight giant Maersk, the company said on Wednesday.Yet shares in the world’s largest container shipping line fell as much as 8% as it missed analysts’ lofty forecasts for the end of last year and gave more cautious guidance for 2021 than anticipated.Maersk’s ocean shipping business, its largest division, “performed at record level in the quarter as a consequence of the strong rebound of demand…
Company in Focus: ShipMoney Helps to Enable Efficient Seafarer Pay
Stuart Ostrow developed ShipMoney as a means to make the process of paying crew more efficient and cost-effective for both vessel owner/operators and the crew. Little did he realize then that his company would be instrumental in helping seafarers during their greatest time of crisis.Stuart, to start, how did you come create ShipMoney and get into a career in the maritime business?I'm the definition of an accidental salesman. By professional training, I'm a Big Six CPA, and I was always one of those frustrated accountants. Many years ago, I read a business plan that talked about prepaid.
Maersk Says European Lockdowns Have Not Dented Demand for Shipping
High shipping rates are set to continue for at least several weeks, despite new coronavirus lockdowns in Europe, boosted by demand for furniture, exercise equipment and home improvement goods, shipping group Maersk said on Wednesday.A surge in demand from shoppers sheltering at home in a worsening COVID-19 pandemic has upended normal trade flows and triggered a spike in the cost of moving goods around."There are simply not enough containers in the world to cope with the current demand…
Fruergaard to Take Over as CEO of Pacific Basin
Hong Kong-headquartered dry bulk shipping company Pacific Basin announced Wednesday that Martin Fruergaard will take over as CEO, replacing longtime chief executive Mats Berglund, who has decided to retie. Fruergaard, the current CEO of Danish gas shipping company Ultragas, will relocate to Hong Kong and join Pacific Basin in early July. He brings to the role significant maritime leadership experience, having previously occupied senior positions in Maersk Bulk Carriers, Maersk Tankers and Maersk Drilling.Berglund was CEO of Pacific Basin for nine years…
Global Cargo Logjam Deepens
Amazon seller Bernie Thompson shifted half of his production out of China to reduce his business risks and still found himself in the crosshairs of logistical chaos besetting the movement of goods around the globe.A surge in demand for furniture, exercise equipment and other goods for shoppers sheltering at home in a worsening COVID-19 pandemic has upended normal trade flows.That has stranded empty cargo containers in the wrong places, spawning bottlenecks that now stretch from factories to seaports.
Hestbaek Takes the Helm at Hamburg Süd
Long-serving Hamburg Süd executive Poul Hestbaek will take the CEO reins from Dr. Arnt Vespermann, who will step down after more than 20 years at the German container shipping company.Hestbaek has been with Hamburg Süd since 2004 and is currently the company's CCO. The 59-year-old shipping-industry veteran has previously been responsible for the liner shipping company’s commercial business on several continents, including Latin America, Europe and Asia/Pacific.Vespermann joined…
Total Joins Maersk-led Shipping Decarbonization Project
French oil major Total said it will contribute to a project led by shipping giant Maersk aiming to develop new alternative fuels and carbon neutral solutions for ships.The nonprofit Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping was formed in 2020 as the maritime industry continues efforts to reduce its environmental footprint. The center will create overviews of decarbonization pathways, accelerate the development of selected decarbonizing fuels and powering technologies, and support the establishment of regulatory, financial and commercial means to enable transformation.
Lloyd’s Register Names Members of Its Decarbonization Panel
Classification society Lloyd’s Register (LR) announced the industry experts who have joined the advisory panel of its Maritime Decarbonization Hub, a dedicated center of excellence launched in October that aims to accelerate the safe, sustainable and cost-effective decarbonization of world shipping in support of delivering greenhouse gas reduction targets.The panel is made up of representatives from across the industry and includes Ole Graa Jakobsen, VP Head of Fleet Technology at AP Moller-Maersk…
Over 300 Companies Sign 'Neptune Declaration' to Ease Crew Change Crisis
Over 300 leading companies said on Tuesday they would work together to help hundreds of thousands of merchant sailors stuck on ships for many months due to COVID-19 in a crisis that risks creating more dangers at sea.About 90% of world trade is transported by sea, and coronavirus restrictions in many jurisdictions are affecting supply chains.In December the U.N. General Assembly urged all countries to designate seafarers and other maritime personnel as key workers. Nevertheless…
Managing Risk: Shipowners Not Meeting Emission Regs Face a Big Business Risk
There is increasing pressure for shipowners to sharpen their environmental performance, driven by an IMO target to halve greenhouse gas emissions from shipping by 2050, regional regulations and market pull from charterers, banks and investors.“This represents a whole new ball game for the industry. Optimization of ship operations has traditionally been dictated by the efficiency of delivery around the globe that has typically meant being able to sail at full speed, thereby burning more fuel, to minimize costs for the charterer.
Inmarsat Milestones: 10k Ships with Fleet Express Installed, 'Fleet Data Academy' Launched
Ship data consumption is booming, and as digitalization and data trends increasingly drive the maritime world, Inmarsat celebrated a pair of milestones, hitting the 10,000 vessel mark on Fleet Xpress installations and launching its "Fleet Data Academy."Traffic DoublesAccording to Inmarsat, the growth in Fleet Xpress now includes the world’s leading container ship and tanker owners, such as MOL, K-Line and Hapag-Lloyd, offshore support giants like Bourbon, Tidewater and Maersk Supply, as well as growing numbers of yachts, passenger ships and fishing boats.