Ocean carrier warns rivals it will fight to defend market share
Maersk Line on Aug. 24 warned rival ocean container carriers it is prepared to fight a rate war to defend its market share.
“We won’t allow anyone to take our market share by systematically undercutting our prices … we are ready to … battle on prices,” said Nils Andersen, chief executive of Maersk’s Copenhagen-based parent A.P. Moller-Maersk.
Maersk is the world’s biggest ocean carrier with an estimated market share of around 15 percent, ahead of Geneva-based Mediterranean Shipping Co. and France’s CMA CGM.
Andersen’s warning, in an interview with Danish newspaper Dagbladet Borsen, comes just days after Maersk reported a second quarter loss of $402 million against a year-earlier profit of $198 million. First half losses climbed to $961 million.
Second quarter freight rates were down 34 percent from a year ago, but Maersk forecast modest increases in the current quarter.
Maersk is reported to have cut its rates through the second quarter to protect market share despite a rate restoration program introduced on April 1.
The carrier today unveiled a series of rate increases on its intra-Americas services from Sept. 1, claiming they were necessary “to continue providing a first class service … in an environment where the operating costs remain on the rise and current rates are below sustainable levels.”
The largest increases are on routes from North America to/from the West Coast South America — $300 for a 20-foot equivalent unit and $600 for a 40-foot equivalent unit effective Oct. 1.
There will be smaller rate rises of between $50 and $200 per TEU on routes between Mexico, Central America, the Caribbean and the east and west coasts of South America from Sept. 1 (source: www.joc.com).
Browse Timeline
Add a Comment
You must be logged in to post a comment.
