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Maersk is new and will invest more money to expand the reefer market

  • Author:Jim
  • Source:Search network
  • Release Date:2019-01-28
    The ambitious Maersk end-to-end program will cover all aspects of the industry, and success depends on the development of a lucrative cold market, and Klaus Rud Sejling, global head of Maersk Line Logistics and Services Said that this is the focus that must be paid attention to.
    He said that Maersk has a leading market position in the reefer container sector, and that Maersk must beat its competitors in this field, which is a successful end-to-end strategy.

     Through the acquisition of HamburgSüd, the Danish container shipping company has become a global market leader in the lucrative reefer container market, but this position must be further strengthened in the coming years.
    “This is an ambitious area where we will invest in and develop these areas to provide our reefer customers with more seamless services than any company in the industry today,” says Klaus Rud Sejling.
    Rud Sejling said that the strategy of providing on-site services to customers has laid a solid foundation. He believes that the most difficult aspects have been locked in, because Maersk has a solid supply chain and strong customer position in the refrigeration business.

▲This reefer market is an ambitious field
Investment cold storage
    However, the success of this strategy requires investment, especially in terms of cooling equipment.

    “What we need to expand now is the ability to provide cold storage in the right place, which is where we plan to work with our customers. Due to our position we have some strong cooling product carriers,” Rud Sejling said.

Today, Maersk already has an independent cooling unit, but the executive says the scale must be expanded.

    “If it's not ready, we can rent or build it, which is part of our strategic puzzle.” Rud Sejling declined to say how much money Maersk will invest in the program and the company's long-term business. “But this will be a meaningful business for Maersk,” he said.

    The acquisition begins to play a role
    Two years ago, Maersk and Hamburg South America reached an acquisition agreement. Since then, Maersk has invested $20 million to upgrade Hamburg South America's reefer containers, using the same remote container management technology as Maersk, which allows customers to monitor temperature and oxygen levels in the reefer in real time. .

    The acquisition also began to have a real impact on Maersk's container business profitability.

    ▲We now need to expand the cold storage instead of the different cooling equipment

    In Maersk’s third quarter report last year, Hamburg South America raised its 2019 revenue forecast. Considering the cost of integration, Maersk expects synergies of at least $500 million in 2019, compared to previous forecasts of $340 million. In 2018, the synergy is expected to reach $400 million.

    In the third quarter, revenues from major marine sectors increased by 32% to $7.3 billion, while sales in Hamburg South America increased by 27%. Maersk said that this growth was particularly driven by the development of North-South trade (such as South America - Europe) and the strong inter-regional traffic in southern Hamburg.