Sune Stilling

Vincent Clerc: Maersk's logistics business is "back on track" Looking at the EBIT figures of Q2.2024 for Logistics and Services, it is difficult to understand what is meant by "back on track"! Considering that APMM has invested Billions in Logistics M+A during the last couple of years, the return on investment is more than disappointing. APMM decided not to pursue DBSchenker "because of a difficult integration"... Actually it would have been "easy" to integrate Maersk Logistics into DBSchenker (reversed integration). In other words: an integration of DBSchenker into APMM should not have been on the agenda at all.

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And we are moving faster than one could imagine across the organisation with all stakeholders eager to support in the Energy Transition from ground level efficiency gains to central led equipment replacement plans. How exciting it is to be part of the huge transition Maersk and the industry is undergoing

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MSC To Re-Enter Car Carrier Market With Gram Car Carriers Takeover MSC is joining its peers in tapping into the red-hot car carrier market. The Swiss-Italian container shipping leader is bidding NOK7.64 billion (US$700 million) for Norway’s Gram Car Carriers (GCC). Source: Container News MSC made the bid through its subsidiary, SAS Shipping Agencies Services. The bid amount, amounting to NOK272.69 (US$24.89) per share, represents a premium of approximately 28% to the closing trading price of Gram’s shares on 23 April, and a premium of around 78% of the average trading price of the company’s shares over the last year. GCC’s directors have unanimously urged shareholders to accept MSC’s offer, calling it financially fair. “Today’s voluntary offer by one of the world’s leading maritime groups is a validation of the unique position GCC has built as a leading car shipping tonnage provider and the long-term commitment put in by the entire team. The board is satisfied that the offer represents a fair valuation of GCC, as is also reflected in the recommendation to shareholders to accept the offer,” commented GCC’s chairman, Ivar Myklebust. The company’s largest shareholders (F. Laeisz GmbH, AL Maritime Holding – holding company of boxship tonnage provider Asiatic Lloyd -, Glenrinnes Farms, HM Gram Investment III and HM Gram Enterprises), which hold approximately a total of 54.54% of GCC’s stocks, have given irrevocable undertakings to accept MSC’s offer. MSC has pledged to retain Gram’s name and to continue its current operations. Regarding the company’s financial performance, GCC’s 2023 net profit nearly quadrupled from 2022 to US$94 million, as car carrier charter rates reached historically high levels of US$115,000/day that year. In Q1 2024, Gram’s net profit more than doubled from the year-ago period to US$31.2 million. It is important to mention that in March 2023, MSC sold MSC Cristiana and MSC Immacolata, the only two car carriers in its fleet, to Greek owner Niki Shipping. Flush with cash from the Covid-19-powered boom, major players in the container segment, such as CMA CGM, HMM and Seaspan Corporation, turned their attention to the rejuvenated car carrier sector from 2022, as box freight levels normalised. Investment in car carriers regressed as the pandemic compelled people to telecommute, resulting in inadequate tonnage to carry cars as vehicle demand recovered post-pandemic. On the other hand, in November 2023, Maersk sold its 10.2% stake in GCC’s compatriot peer, Hoegh Autoliners, for about US$168.8 million, sparking speculation that the Danish group could be planning to start its own car carrier operations.MSC Mediterranean Shipping Company Gram Car Carriers Ivar Myklebost CMA CGM Seaspan ULC HMM Höegh Autoliners

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📈Soaring Spot Rates and Surging Liner Profits: A Double-Edged Sword and my Call for Balance! ♎ Danish shipping giant AP Moeller-Maersk has raised its full-year profit guidance for 2024 for the second time in a month, driven by strong container market demand and disruptions in the Red Sea. Maersk now anticipates its underlying earnings before interest, tax, depreciation, and amortization (EBITDA) to be between $7 billion and $9 billion, up from a previous forecast of $4 billion to $6 billion. Its earnings before interest and tax (EBIT) are expected to rise to a range of $1 billion to $3 billion, from an earlier projection of a potential loss! 🌐 Key Drivers Behind the Surge 🔹 Port Congestion and Supply Chain Disruptions: Maersk has reported substantial terminal congestion in Mediterranean and Asian ports, leading to delays in vessel schedules. These disruptions are partly due to ships rerouting to avoid conflict zones like the Red Sea, exacerbating congestion and extending delivery times - whilst increasing fees and rates along the way. 🔹 Rising Container Freight Rates: Increasing demand for container shipping, coupled with logistical challenges, has driven up freight rates. This trend is expected to continue, contributing to Maersk's strong financial outlook for the second half of 2024. 🔹 Strong Market Demand: Despite the hurdles, the demand for container shipping remains robust, reflecting the resilience of global trade. 🌐 The Broader Implications While Maersk’s impressive financial performance is positive for its stakeholders, it also highlights broader issues within the freight industry. Rising freight rates, driven by supply chain bottlenecks and geopolitical tensions, pose significant challenges for businesses dependent on global trade. Higher shipping costs inevitably lead to increased prices for goods, impacting consumers and businesses alike. Persistent port congestion underscores the need for improved infrastructure and more efficient logistics solutions. 🔊 A Call for Balance The freight industry's current landscape, marked by record-breaking rates and strong profits, presents a dual-edged sword. On one hand, it highlights the resilience and profitability of major shipping lines like Maersk. On the other hand, it underscores the urgent need for systemic improvements to address the underlying issues causing these rate surges. Strategic investments in infrastructure and technology are needed so we can work towards a more balanced and efficient freight industry, capable of supporting the demands of global trade in the long term. While market forces are at play, I also believe we should scrutinize Liner practices such as Blank Sailings and dubious D&D Charges. https://lnkd.in/gFSrZeBi #freightforwarding #Shipping #Supplychains #rwsolutions

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Dear Mr.Ken, I recently graduated with a degree in classical music,but somehow,I’ve ended up working in a container shipping company.Now, instead of sonatas/ concertos,I’m hearing words like “bill of lading” & “ETA,” I feel like I’m completely off-key.Help! Best regards, Wolfgang Lim,21 Dear Wolfgang , Ah, life’s ultimate Remix ! One moment you're fine-tuning your violin, the next you’re fine-tuning shipping schedules.But don't fret maestro! Much like a symphony, shipping has its rhythm,& with a little practice, you’ll be orchestrating container movements like Mozart at his peak. Step 1: Your New Orchestra – The Shipping Crew Shipping is just like an orchestra. Here’s how: Operations Team –The Percussionists These folks set the tempo. Without them, your container of...well, anything, will miss its beat. Get to know them. Buy them kopi. Without the right rhythm, chaos follows. Sales Team –The Lead Soloists The violinists of shipping. They bring in the deals, charm the clients,& keep the symphony going. No cargo = no music. Sales keeps the whole thing alive, just like that big violin solo in your favourite concerto. Documentation Team – The Sheet Music Librarians Ah, without documentation, everyone’s playing in a different key. These are the folks handling the “Bills of Lading,” aka your new sheet music. Lose one of these,& it's like handing blank scores to the entire orchestra. Again - Chaos. Step 2: Learn the Tempo Like classical music, shipping’s all about timing.Miss an ETA (Estimated Time of Arrival), & it’s like coming in late during a symphony—utter disaster. Your boss (the conductor) won’t be too pleased either. Step 3: Improvise Remember improvising when you forgot your sheet music? Well, shipping’s like that—weather delays, port congestion, and missing cargo. Improvise like a jazz pro, & you’ll thrive! Step 4: Know Your Instruments Here, the instruments are containers, and learning them is essential: GP Containers: The middle C of shipping. Standard, functional, everywhere. Reefer Containers: The cool kids—literally. They keep things chilled, like that sharp high note in your favourite piece. Flat Racks: For when your cargo, like a grand piano, doesn’t fit in the standard container. Step 5: Your Music Skills Aren’t Wasted Surprise! Your degree’s more useful than you think: Coordination: Just like conducting an orchestra, managing logistics means ensuring everyone plays their part on time. Step 6: The Kopi Auntie – Your Secret Conductor Ah yes, every shipping office has one. The kopi auntie knows the real tempo of the workplace. Befriend her - she has a wealth of info ! Conclusion: From Concert Hall to Container Yard Your journey from classical music to container shipping may seem like an odd key change, but you’ll soon see the rhythm & harmony are the same. One day, you'll be shipping grand pianos across oceans like the seasoned maestro you are. Enjoy the suffering 🤣 Yours in perfect harmony, Uncle Ken The Shipping Academy

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Here's an update on the Ocean Freight Market. I've been talking to a lot of customers/ partners / Ocean carriers on why container rates are going up... and I'm just getting back from a 10-day trip in Europe. First, you have to think about the entire system, not just 1 trade lane. Asia to Europe has to go around Africa due to Houthi's in the Red Sea. This results in a 25% longer transit time & is about a 20% reduction of capacity. Importers are ordering earlier due to this, and the system wasn't ready for it. Empty containers take 25% longer to get back to Asia. This is a problem. There is a lack of empty containers. Carriers still don't have enough vessels for this uptick in demand. Blanking salings occur as a result to make up for the insufficient container ships in rotation. The new US tariffs recently implemented created an uptick in demand for goods to get into the country before the increased tariffs which supports the increase in demand. E-commerce goods that are entering under the diminimus rule are swelling because they know this will not last forever. This is another reason for increased demand. Big box importers have also burned through inventory now. Their demand is strong through July and they have preferred agreements with carriers and take up a lot of the capacity on the vessels. (Think Walmart / Target / Home Depot, etc etc) Now... importers have been through this before. Whenever there is scarcity and the public catches wind of this scarcity, they make a run on the goods. (Think toilet paper during Covid / Getting Gas before a hurricane.) I think we're seeing a run on capacity, and importers are moving up orders earlier. This exacerbates the problem even worse. Once the demand overloads the system, port efficiencies will continue to diminish, further reducing capacity and increasing bottle necks again in the system. Better buckle up. Lars Jensen says we're following exactly the same pattern as 3 years ago.

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Navigating Continued Volatility in Global Shipping The ongoing disruptions in the Red Sea and the potential reopening of the Suez Canal highlight the complexities facing global container shipping. As Lars Jensen, CEO of Vespucci Maritime, points out, even a restart of the Suez Canal won’t be a quick fix for the turbulence we’re seeing in freight markets. The industry is bracing for continued volatility into 2025, with massive port congestion in Europe likely as vessels reroute. For shippers and logistics professionals, now is the time to focus on resilience and adaptability. The next 18 months will require strategic planning and a proactive approach to manage the highs and lows of the market. #SupplyChain #MaritimeIndustry #GlobalTrade #Logistics #FreightRates

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A.P. Moller Holding has segregated as announced the offshore wind division as otherwise developed from within Maersk Supply Service (MSS) already launching the Maersk Offshore Wind business as a stand alone. Further, Brazil MSS operations are not included on the deal, for specific reasons. DOF name and brand remain, MSS fades away. Makes sense. A.P. Moller Holding has evolved to become an industrial investor leveraging from the position its A.P. Moller - Maersk different operating companies built throughout decades. DOF on the other hand is the right vehicle to raise the equity and debt facility to enable the transaction. A.P.Moller Holding to nominate two additional members to the board (vice-chairman and member of the remuneration committee) and the chairman of the nomination committee. Complex deal. Nice move. Good for both. Good for the industry. Raphael Montes Omar Darian Fernando Vilela Rafael Bortoloti Paulo de Tarso Rolim de Freitas Ronaldo Lima Claus Tafteberg Sørensen mons aase

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For #shipping, #innovation is a high-stakes game. That’s particularly true for the smaller and medium-sized companies that do not have a huge fleet to run a vast amount of tests on. “We are not #Maersk,” Klaveness Combination Carriers ASA CEO Engebret Dahm said more than once in our interview. Check out the story here to understand how the #Norwegian #shipowner is driving down fuel costs while waiting for #newbuilding prices to open up the opportunity for its next order. #shipping #energy #netzero https://lnkd.in/dBNS89Vr

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A bit surprised to read this analysis and hear about it on Bloomberg Television this morning. A.P. Moller - Maersk is a great company that combines a shipping heritage with a strong and growing presence in Logistics, for the last 6 years seeking to offer integrated supply chain solutions. (Full disclosure: I used to work there 😜 ) Yet it is consistently still rated as a pure ocean shipping company. A.P. Moller - Maersk trades at a P/E ratio of 7.5x versus 33.5x for DSV - Global Transport and Logistics and 21.8 x for Kuehne+Nagel. “Negative earnings risks make Maersk a value trap,” said Morgan Stanley analyst Cedar Ekblom and colleagues in a note. “We see container supply growth materially outpacing demand.” Oversupply concerns have reemerged after a boost to shipping rates from attacks on Red Sea vessels by Houthi rebels faded. The sector has been left with excess capacity after it invested in fleets during disruption caused by Covid-19. Meanwhile, new tariffs pledged by US president-elect Donald Trump are seen potentially curbing demand. Maersk shares took a double hit on Wednesday as JPMorganChase & Co. slashed its price target to 8,450 kroner from 9,000 kroner, suggesting a 33% decrease from Tuesday’s close. The stock fell as much as 4% to 12,035 kroner. “Industry dynamics remain unfavorable given structural oversupply,” analyst Alexia Dogani wrote in a note.

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One of the golden rules of supply chain (or freight) management? Agility! Think of it like this: if your main route is blocked, you need backup plans quicker than a caffeine boost on a Monday morning. Having alternatives in your back pocket means you're not just fast—you’re a supply chain ninja, dodging delays and making smart moves like a pro. Who said logistics can’t be fun?

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Constructive and ambitious discussions at Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping #Accelerate Partner Summit, on how #shipping can #decarbonize. A lot of progress on #regulations, #technology, #production and #funding over the past few years, but still early days and a lot of ground to cover to reach #netzero for shipping. On the short term operational energy efficiency measures as weather routing, performance systems and similar are key to reduce #consumption of the world's existing fleet. Long term, new fuel types are needed, and on the path to realization. StormGeo, part of Alfa Laval

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Which regulatory measure has the biggest potential of meeting the International Maritime Organization targets? Join us on 22 May in Copenhagen to hear Faïg Abbasov's, director of shipping at Transport & Environment (T&E), thoughts on the question at ShippingWatch's fourth 'Decarbonizing Shipping' conference. Link for registration below! #shipping #conference #sustainability #oceanfreight #freight #energytransition #regulation

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How is Maersk decarbonising inland logistics?🚛⚡We aim to set a new standard for inland transportation as part of our ambition to reach net-zero emissions by 2040🚚🚂🌱 To reach this goal, we are investing in new modes of transportation, with key efforts such as electrifying our trucks and rail network to reduce greenhouse gas emissions when moving cargo inland for our customers. Together, we can make this the decade of action and go #allthewaytozero👊🏼 #Decarbonisation #Sustainability #inland #Supplychain #Maersk

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A.P. Møller-Mærsk raised its full-year guidance for the second time in barely over a month, as disruptions in the Red Sea and strong shipping demand continue to buoy global freight rates. The Denmark-based carrier said Monday it expected freight rates to keep marching higher through the rest of the year due to strong container market demand and ongoing disruption in the Red Sea, where attacks by Yemen’s Houthis have forced ship operators to divert vessels thousands of miles. Mærsk said it now sees signs that port congestion is also building up, particularly in Asia and the Middle East, tying up shipping capacity and adding to the upward pressure on rates. Mærsk is revising its annual outlook after earlier lifting the lower-end of its full-year forecast in early May, attributing the boost to similar factors. The shipping line said at the time that the diversions would effectively reduce container shipping capacity on routes from Asia to Europe by 15% to 20%. Drewry Shipping Consultants’ World Container Index for pricing reached $4,226 in the week ending May 30, up more than 56% since the week of April 25. Rates for transport on major lanes from Shanghai to Rotterdam and Los Angeles were beyond $5,000. Mærsk said trading conditions were still more volatile than normal because of the unpredictability of the Red Sea situation and uncertainty about future supply and demand dynamics. Container lines entered 2024 with capacity far ahead of weak demand and a slew of new vessels on order for delivery this year. That sent freight rates tumbling from pandemic-fueled highs, and carriers, including Hapag-Lloyd, began slashing costs.

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🔥Greetings, Maritime Mavericks, 🪙Vincent Clerc, CEO of A.P. Moller - Maersk, delves into the future of shipping with groundbreaking insights on green methanol innovation, the resilience of the global economy, and the ongoing challenges in the Red Sea. 🌟A must-read for those navigating the pulse of global trade! #ContainerShipping #MaritimeIndustry #ShippingNews #Logistics #SupplyChain #Maersk #CMACGM #HapagLloyd #Carriers #MSC #GlobalTrade #SeaFreight #Freight #Export #Import #AI #Newsletter #MaritimeAnalytica #Sustainability #BigData #ArtificialIntelligence #Shipping #Maritime #Oceanfreight #Ports

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We launched Angle Recruitment, Maritime Talent Experts and moved into our first office in September 2023. Fast forward 10 months, we have just made our third office move, much sooner than expected. We're settled into a private office at the The Executive Centre, a fantastic co-working space with a stylishly designed shared executive lounge, reception, and pantry. The name is spot on, and it truly has an executive feel. Our clients and candidates appreciate our private meeting room facilities, and the team at Angle really enjoy the working environment, so do I! I recently came across a post by Steven Bartlett from The Diary Of A CEO that really resonated with me: “If you have a team of five, each person represents 20% of your company culture. Ensuring that your initial hires truly embody your values is key because that's the culture you will scale.” I couldn’t agree more. While it's great to see our company growth, I'm cautious about scaling too quickly. Ensuring our team is the best in class, gets all the help and development they need, supports one another and truly enjoy their jobs is far more important than rapid expansion. I'm proud of the balance we've struck in our first year, and the results have been outstanding. It's a testament to the incredible work the team is doing. Check out this 2-minute snapshot video of my talk with Andy Willett about co-working spaces and my decision-making process. If you’re setting up a business or planning to set up in Singapore, you might find it useful. The full interview is 13 minutes which you can find on makeit:work media's website. #BusinessGrowth #TeamCulture #SingaporeBusiness

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