Maersk, Hamburg Süd Boards Approve Merger

By Mark Edward Nero

The sale and purchase agreement for shipping company Maersk Line’s acquisition of rival Hamburg Süd was approved by the boards of Maersk Line and the Oetker Group on April 28. The acquisition still remains subject to regulatory approvals.

Maersk Line is to acquire Hamburg Süd for $4 billion USD cash. Maersk has said it will finance the acquisition through a syndicated loan facility.

“Today, we have taken a decisive step toward the shared future of Maersk Line and Hamburg Süd. We have confirmed the anticipated synergies and we are convinced that our plan to maximize customer retention is the right path forward. The acquisition is cementing our position as the largest and leading carrier in container shipping, and it will provide great opportunities for the employees of both companies,” Maersk Line and A.P. Moller – Maersk CEO Søren Skou said in a statement.

Combined, the two companies are expected to earn $350-400 million USD annually over the first couple of years following completion of the transaction, Maersk said.

Following the sale, Hamburg Süd is expected to maintain its own structure, and the combined network will include increased number of weekly sailings, faster transit times, more port calls, more direct port-to-port calls and less need for transhipment, benefitting both Maersk Line and Hamburg Süd customers.

“By keeping Hamburg Süd as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies. The acquisition of Hamburg Süd will therefore create substantial value to Maersk Line already in 2019,” Skou said.

With the acquisition, Maersk Line and Hamburg Süd will have a total container capacity of around 3.9 million TEU and an 18.7 percent global capacity share. The combined fleet will consist of 743 container vessels.

The US Department of Justice approved the proposed acquisition in March, and in April, the EU Commission approved it as well, subject to conditions.

Maersk Line said it expects to close the transaction by the end of 2017 and that until then, Hamburg Süd and Maersk Line would continue business as usual as separate and independent companies.

Maersk Line to Acquire Hamburg Sud

By Mark Edward Nero

Danish shipping company Maersk Line says it has reached an agreement to acquire German container shipping line Hamburg Süd.

“Giving up our engagement in shipping after an 80 year-long ownership in Hamburg Süd was not an easy decision for my family,” said Dr. August Oetker, Chairman of the Advisory Board of the management holding company of the Oetker Group. “We are very confident, though, to have chosen the best of all possible partners.”

“Maersk will preserve and grow Hamburg Süd and what the brand and the whole organization and a highly dedicated workforce stand for: reliable and high quality logistical services to our customers,” Oetker said.

Hamburg Süd is the world’s seventh largest container shipping line and a leader in the North-South trades. The company operates 130 container vessels with a container capacity of 625,000 TEUs. It has 5,960 employees in more than 250 offices across the world.

“Today is a new milestone in Maersk Line’s history,” Maersk Line and Maersk Group CEO Søren Skou said. “I am very pleased that we have reached an agreement with the Oetker Group to acquire Hamburg Süd. Hamburg Süd is a very well-run and highly respected company with strong brands, dedicated employees and loyal customers. Hamburg Süd complements Maersk Line, and together we can offer our customers the best of two worlds.”

In a prepared statement, Dr. Ottmar Gast, Chairman of the Executive Board of the Hamburg Süd Group said his company was proud to join Maersk Line.

“While gaining access to a superior network and systems we will continue the Hamburg Süd brand and business model offering personalized solutions to our shippers and consignees,” he said. “By joining forces both Maersk and Hamburg Süd will strengthen their product portfolio and cost position to the benefit of their customers.”

LA Area Ports Partnering with Maersk on Environmental Initiative

By Mark Edward Nero

The ports of Long Beach and Los Angeles said Nov. 7 that they’ve launched a partnership with shipping company Maersk Line to measure the environmental benefits of a $125 million upgrade for 12 Maersk container ships.

The partnership involves the installation of high-tech equipment to track vessel emissions and energy efficiency over the next three years, something that the three partners say would enable more transparency and ultimately reduce the environmental impact of vessels calling at the San Pedro Bay port complex.

The two ports are contributing a combined $1 million to real-time tracking systems that represent an industry-leading application to pinpoint vessel emissions while ships are at sea and at berth. Unprecedented in its scope and scale, the three-year data collection and analysis project, called “The Connected Vessel Programme,” builds on the $125 million Maersk Line has invested in its “radical retrofit” program to reduce fuel consumption and increase the capacity of the vessels that regularly call at the San Pedro Bay ports.

“This project is a vivid example of the deep commitment to environmental sustainability that we have grown to expect from our goods movement partners, as we all work together to create a healthier planet,” Port of Long Beach Interim CEO Duane Kenagy said in a statement. “We’re pleased to be a part of this project, and we hope it will serve as a model to encourage even more progress and creativity in emissions reductions from ocean-going vessels.”

The project will continuously record how much fuel each engine uses in conjunction with speed, engine power, weather and other operational variables through use of mass flow meters and an interface to the on-board Integrated Control System to capture performance data.

Information will be uploaded to Maersk Line servers via satellite, and each ship will be able to communicate in real-time with Maersk Line’s Global Vessel Performance Centre to increase operational efficiency.

“This is the equivalent of strapping a Fitbit onto a large container ship,” said Dr. Lee Kindberg, Director of Environment and Sustainability for Maersk Line.

“We’ll be tracking vessel performance and emissions 24/7. This advances our ability to reduce greenhouse gases and other pollutants on a global scale.”

The ports of Los Angeles and Long Beach will split the $1 million cost under their joint Technology Advancement Program, which is a grant program created under the ports’ Clean Air Action Plan to accelerate the evaluation and demonstration of new and emerging clean technologies for reducing and ultimately eliminating harmful emissions from all port-related sources. Ships generate the lion’s share of air pollution associated with port activity.

“We are eager to do our part to advance fundamental change that will result in cleaner air for our surrounding communities and around the world,” Port of LA Executive Director Gene Seroka said.

Maersk, MSC to Fill Transpacific Void

By Mark Edward Nero

Global shipping companies Maersk Line and Mediterranean Shipping Co. (MSC) each issued word on Sept. 7 that they’ll launch new weekly transpacific trade services soon in attempts to partially fill the void left by the recent collapse of Hanjin Shipping.

Maersk Line’s new TP1 service, which will complement existing Transpacific sailings, is scheduled to launch Sept. 15.

The service will call at Yantian, China; Shanghai, China; Busan, South Korea; and Los Angeles/Long Beach. It will have six vessels with a capacity of 4,000 TEU per week deployed.

“We are responding to increased demand in the Transpacific,” Klaus Rud Sejling, head of Maersk Line’s East-West Network, said. “With supply chains disrupted, many customers are approaching us for transport solutions for their cargo.”

MSC’s new service, like that of Maersk, launches Sept. 15 and is designed to assist shippers, following Hanjin’s announcement that it was entering into receivership.

MSC’s additional sailing, which the company is calling MAPLE, is to be made up of six vessels of 5,000 TEU capacity each.

In order to cover the anticipated high initial demand, the first two sailings will call Yantian, China; Shanghai, China; Busan, South Korea; and Long Beach, California.

After that, the calls are scheduled to take place at the ports in Busan; Shanghai; Yantian; and Prince Rupert, British Columbia.

Hanjin, the world’s seventh largest container carrier, filed a receivership application with the Seoul, South Korea Central District Court on Aug. 31 seeking court receivership after losing the support of financial institutions that had been providing it credit.

The company also stopped accepting new shipments in the wake of the filing, including at the Port of Long Beach’s Total Terminals Intl., in which it owns a majority stake.

Maersk Cutting Back on Jobs, Shipbuilding

By Mark Edward Nero

As a response to both the short term and long term market outlook, Maersk Line is implementing a number of cost and efficiency initiatives, including cutting back on shipbuilding and eliminating jobs, the company said Nov. 4

Maersk Line, the world’s largest shipping company, plans to reduce its network capacity and postpone investments in new capacity, while the same time reducing operating costs by escalating already announced plans to, over the next two years, cut at least 4,000 jobs.

The company also stated that it is cutting back on shipbuilding plans that it announced earlier this year: it will now not exercise previously announced options for six 19,630-TEU vessels and two 3,600-TEU feeders and is postponing its decision on eight optional 14,000-TEU vessels.

“We are on a journey to transform Maersk Line,” CEO Søren Skou explained in a prepared statement. “We will make the organization leaner and simpler. We want to improve our customer experience digitally and at the same time work as efficiently as possible.”

The company currently has 23,000 employees globally and says it will eliminate the 4,000 positions through natural attrition and other means.

“We are fewer people today than a year ago. We will be fewer next year and the following year. These decisions are not taken lightly, but they are necessary steps to transform our industry,” Skou said.

ABB Equipping Maersk Ships with Optimization Software

By Mark Edward Nero

Power and automation group ABB is working with weather forecasting service MeteoGroup to equip 140 Maersk Line container ships with advisory software to optimize routes, boost maritime safety and protect precious cargo.

The advisories will be based on factors including the vessels’ hull design and the weather and could help them avoid conditions that could be harmful to the ship, its crew or its cargo.

The deal will see ABB combine its motion-monitoring, forecasting and decision-support software with MeteoGroup’s plug-in software. Once fitted on Maersk Line ships, this is expected to enable captains to define on-board loading conditions, and more accurately determine areas of the ocean where their ship’s motion is likely to exceed threshold values.

Routes could then be optimized automatically to skirt adverse conditions.

“Both MeteoGroup and ABB take great pride in the fact that we are delivering an onboard advisory tool for the world’s biggest container shipping company,” said Heikki Soljama, managing director of ABB’s Marine and Ports business unit.

ABB’s advisory suite, which is also deployed aboard liquefied natural gas tankers and the world’s biggest cruise ships, includes a three-dimensional hydrodynamic database for each individual hull type. This means ABB’s software, together with MeteoGroup’s plug-in, produces very accurate calculations about how a ship will respond to dynamic weather and ocean conditions.

The resulting routing advice takes into account not only environmental conditions such as wind, currents and swell but also the effect these changing conditions may have on the ship’s behavior.

Maersk Orders Nine 14,000-TEU Vessels

By Mark Edward Nero

Maersk Line on July 8 signed a new building contract with Hyundai Heavy Industries for nine vessels with a capacity of 14,000 TEUs each. The agreement includes an option for up to eight additional vessels.

The vessels will have a length of 353 meters (1,158 feet).

The contract, which has a value of $1.1 billion, was signed by HHI Chief Operating Officer Sam H. Ka and Maersk Line COO Søren Toft during a ceremony at Maersk Line’s Copenhagen headquarters.

This is the third new-building order in Maersk Line’s investment program, which was announced in September 2014. The order follows the seven 3,600 TEU feeder vessels and eleven 19,630 TEU Triple-E vessels announced earlier this year as part of Maersk Line’s $15 billion investment in new-buildings, retrofitting, containers and other equipment.

“I am very pleased about this order for which we have taken a new approach. The vessels will be designed to operate in and perform efficiently across many trades and not just designed for one specific trade. They will help us stay competitive and make our fleet more flexible and efficient,” Toft said.

The nine vessels are expected to join Maersk Line’s fleet in 2017 and sail under Singaporean flag.

Since 2002, HHI has delivered more than 50 container vessels to Maersk Line, including 22 WAFMAX (West Africa Maximum) vessels of 4,500 TEU, which were delivered in 2011-13.

Maersk Delays Congestion Surcharge

By Mark Edward Nero

Maersk Line is delaying “until further notice” a congestion surcharge that it had planned on implementing beginning Nov. 26 on cargo traveling to the US West Coast. This marks the second time Maersk has delayed the introduction of the congestion surcharge, which was originally slated for Nov. 18.

The line announced last month that it would levy an $800 per TEU and $1,000 per FEU surcharge on cargoes on the transpacific due to congestion at US West Coast ports.

Congestion has been an issue at West Coast ports for months, with the blame going partially to a surge of larger ships that has taxed terminals at ports around the world to move cargo faster. Labor unrest has also been cited as a problem. The Pacific Maritime Association, which represents management, has been engaged in talks on a new contract with the International Longshore & Warehouse Union since mid-May. The previous six-year deal expired July 1.

“As you are aware, congestion is real and tangible, and a reality which will continue to impact the US West Coast for the foreseeable future,” Maersk said in notice to customers. “That said, we have made the decision to delay the application of the congestion surcharge until further notice.”

In mid-November, the Federal Maritime Commission issued a statement on congestion surcharges, stating that any surcharges levied by ocean carriers that results in an increased cost to a shipper may not go into effect more than 30 days after notice of the change is given.

“The Commission continues to review congestion surcharge rules published in carrier tariffs and is gathering information from carriers regarding implementation of these surcharges,” the FMC said in a Nov. 17 statement.

Maersk Line Settles Federal Fraud Allegations

By Mark Edward Nero

Maersk Line Ltd., a US-based subsidiary of A.P. Moller – Maersk Group, has paid the United States government $8.7 million to settle a civil settlement regarding Maersk’s failure to fully comply with terms of a contract with the United States Transportation Command, the US Attorney for the Southern District of Illinois, said Nov. 5.

Under the contract, the Department of Defense used Maersk services to ship cargo from the United States to military outposts in Afghanistan. Maersk moved cargo by sea to a designated port, then by trucks over land, often travelling in remote areas where enemy combatants and criminal entities were active in delivering shipments.

However, the Transportation Command found that some claims submitted by Maersk contained suspicious signatures. Further investigation revealed that signatures purporting to verify receipt of shipments in Afghanistan were forged. A review uncovered 277 instances in which such claims were falsely made.

The transport command is based in St. Clair County, Illinois, which is why the case was prosecuted by the United States Attorney for the Southern District of Illinois.

“I would note that to its credit, Maersk was cooperative in the investigation,” Stephen R. Wigginton, the US Attorney for the Southern District of Illinois, said. “Aside from these containers, Maersk has successfully delivered thousands of shipments during the war effort.”

The matter was investigated by the United States Army Criminal Investigation Command, Defense Criminal Investigative Service, Naval Criminal Investigative Service, Air Force Office of Special Investigations and the Office of the Special Inspector General for Afghanistan Reconstruction.

“Maersk’s overall conduct reflects a stronger performance and greater diligence than the relatively small amount of non-compliant warzone shipments would suggest, but ... even a small amount of overall fraud becomes a huge waste of tax dollars,” Wigginton said.

Maersk, MSC Sign Vessel Sharing Pact

By Mark Edward Nero

Two of the three companies involved in the failed P3 Alliance of shippers are having another go at it. Maersk Line and Mediterranean Shipping Co. (MSC) announced July 10 that they’ve signed a 10-year Vessel Sharing Agreement (VSA) on Asia-Europe, Transatlantic and Transpacific trades.

The VSA, which the companies have dubbed 2M, replaces all their existing VSAs and slot purchase agreements. The 2M sharing agreement differs from the previously proposed P3 Alliance in two major ways: first, the combined market share is much smaller. Also, the cooperation is purely a vessel sharing agreement; there is no jointly-owned independent entity with executional powers.

Maersk and MSC say the agreement includes 185 vessels with an estimated capacity of 2.1 million TEU. Maersk Line is to contribute 110 vessels with a nominal capacity of about 1.2 million TEUs, or 55 percent of total capacity. MSC contributes 75 vessels with a nominal capacity of almost a million TEUs, or 45 percent of total capacity.

The shipping lines say that with the agreement in place, they’ll be able to provide their customers with more stable and frequent services and cover more ports with direct services as well as improve the efficiency of the companies’ networks through better utilization of vessel capacity and economies of scale.

“The 2M Vessel Sharing Agreement will enable us to achieve significant reductions in fuel consumption, driving down the carbon footprint of our shipping operations,” MSC Vice President Diego Aponte said. “This vessel sharing agreement will mean major cuts in emissions while simultaneously enhancing our service to customers.”

“I am very pleased with our agreement,” Maersk Line CEO Søren Skou said. “We share the same ambition to have as efficient and effective operations as possible.”

The new alliance is a reaction to the rejection last month of plans by Maersk, MSC and CMA CGM to form a coalition. The P3 Alliance was announced in June 2013 as a long-term operational vessel sharing agreement on routes covering Asia to Europe as well as transpacific and transatlantic routes to the United States.

But although it received approvals from US and European officials earlier this year, the Chinese Ministry announced its disapproval June 17 after an anti-monopoly investigation.

P3 Shipping Alliance Abandoned

By Mark Edward Nero

Plans by containership operators Mediterranean Shipping Co, CMA CGM and Maersk Line to form an alliance have been abandoned after their proposal was rejected by China’s Ministry of Commerce.

The P3 Alliance was announced in June 2013 as a long-term operational vessel sharing agreement on routes covering Asia to Europe as well as transpacific and transatlantic routes to the United States, with an overall aim of making container liner shipping more efficient and improving service quality for the shippers.

Although receiving approvals from US and European officials earlier this year, the Chinese Ministry announced its disapproval June 17 after an anti-monopoly investigation.

During the investigation, the Ministry of Commerce informed the Alliance that its formation would adversely impact competition, and that the two sides had “several consultations on how to reduce the adverse impact of the concentration of undertakings to competition.”

Although the Alliance submitted “several remedy plans” to alleviate the Ministry’s concerns, the Ministry of Commerce eventually concluded that there was “no legal basis and convincing evidence” to support the remedy plans. “Therefore, according to the Anti-monopoly Law of People’s Republic of China, Ministry of Commerce decided to forbid this concentration of undertakings,” the Ministry said in a statement explaining its actions.

Following China’s decision, the Alliance members said they had ceased preparatory work on the coalition, which had expected to start operating later this year.

“We have delivered very good results on a stand-alone basis, and there are no reasons why we should not continue,” Møller-Mærsk Chief Executive Nils Andersen said, adding he didn’t rule out smaller alliances, or capacity adjustments, in the wake of the P3 rejection.

In a prepared statement, Mediterranean Shipping said it would review its options.

“We are disappointed by the decision of the Chinese Ministry of Commerce but will continue our efforts to operate more efficiently,” MSC Vice President Diego Aponte said in the statement. “We could have achieved these efficiencies much faster through P3, but with our investment in more fuel efficient vessels, further economies of scale will still be achieved over a period of time.”

P3 Alliance Launch Delayed Until Fall

By Mark Edward Nero

The launch of an alliance between the world’s three largest container companies has been delayed from mid-year to sometime in the fall, the companies said May 21.

The P3 Alliance, made up of shipping giants CMA CGM, Maersk Line and Mediterranean Shipping Co., was announced in June 2013 as a long-term operational vessel sharing agreement on routes covering Asia to Europe as well as transpacific and transatlantic routes to the United States, with an overall aim of making container liner shipping more efficient and improving service quality for the shippers.

Indications are that the P3 network will be operated from new management offices in London and Singapore with a staff of about 200. The proposed Alliance has already named Maersk Line’s Lars Mikel Jensen as its Chief Executive Officer.

Maersk Line has estimated that after the alliance is put into place, market control would be at about 42 percent on the Asia to Europe route, 24 percent on the transpacific routes, and 40 to 42 percent on the transatlantic route.

The US Federal Maritime Commission, after holding a summit last December with its European and Chinese counterparts, approved allowing the agreement to become effective in the US However, the coalition still faces questions from maritime authorities in Asia and Europe, which is being cited as a partial cause for the delay of the alliance’s launch.

Among the various concerns the Federal Maritime Commission and other regulatory bodies have expressed about the proposed alliance are a reported vessel reduction if alliance is consummated.

2014 Green Gateway Award Winners Honored

By Mark Edward Nero

Maersk Line, COSCO Container Lines, Royal Caribbean International, Celebrity Cruise Lines, Princess Cruises and Holland America Line have been announced as the 2014 winners of the Port of Seattle’s annual Green Gateway Partners Awards.

The awards, now in their fourth year, recognize the environmental achievements of the port’s cruise and containership operators. This year’s winners were honored March 19.

“These awards show that maritime businesses are doing the right thing for the environment every day,” Port of Seattle CEO Tay Yoshitani said in a prepared statement. “Their efforts have removed hundreds of tons of pollutants from Puget Sound air.”

The Green Gateway Partners Awards have a minimum requirement of participation in the port’s At-Berth Clean Fuels program or use of shore power. These and other environmental activities are assigned point values and depending on the number of points earned, Green Gateway Partners can achieve one of three recognition levels – gold, silver or bronze.

The awards and scoring system are conducted by analysts from Cascadia Consulting Group and Glosten Associates.

For the second year in a row, Holland America Line earned the port’s highest level award, platinum, for use of low-sulfur fuels beyond the required levels, zero discharge of ballast water in Puget Sound, and Marine Sanitation Devices contributed to its high scores in the Air & Energy and Wastewater categories.

Earning gold was Princess Cruises for its use of low-sulfur fuels beyond the required levels, zero discharge of ballast water in Puget Sound, advanced wastewater treatment systems and marine sanitation devices.

Earning silver for their use of low sulfur fuels were Celebrity Cruises, Royal Caribbean, COSCO Container Lines and Maersk Line.

Maersk Line Creating New Americas Division

By Mark Edward Nero

Ocean transport company Maersk Line announced Jan. 8 that it’s forming a regional, containerized shipping company called SeaLand that will be dedicated to the intra-Americas market.

“We heard from our customers that they value Maersk Line services but they required greater service stability and commitment. That’s one of the key reasons why we’re responding with an improved, restructured solution for the Intra-Americas,” SeaLand’s newly named CEO, Craig Mygatt, explained.

The new, independent unit is expected to officially commence operations Jan. 1, 2015 and have a structure similar to Maersk’s other regional carriers: intra-Asia’s MCC Transport and intra-Europe carrier Seago Line. Maersk says the new company will have local sales and support personnel positioned in North, Central, and South America, as well as the Caribbean, but will be based at a to-be-determined located in the United States.

Maersk says it will begin the transition of its Intra-Americas business to SeaLand in a phased approach throughout 2014 and that the newly established team of about 240 personnel will begin their new roles by July 1 of this year.

Despite its independence, the company’s expected to share specific Maersk Line operational services, such as finance and land-side operations.

“This reorganization is an investment in our global container business,” Maersk Line Chief Trade & Marketing Officer Vincent Clerc said. “It enhances and strengthens service in this important and growing trade region, as well as the future of our overall global service network.”

FMC Delays Consideration of Shipping Alliance

The Federal Maritime Commission on Dec. 5 decided to delay a vote on whether or not to approve an alliance between the world’s three largest container companies, Maersk Line, Mediterranean Shipping Co. and CMA CGM.

The FMC voted to approve a request for additional information from the parties to the proposed sharing plan, known as the P3 Network Vessel Sharing Agreement. The request for additional information delays the timeframe of the proposed agreement: after the parties have submitted the requested information and documents, a new 45-day regulatory review period is set to begin.

The request for more information came at the behest of Commissioner William Doyle.

“In addition to my own questions and considerations posed by my fellow commissioners, I have taken into account comments submitted to the Commission and drafted further questions addressing those filings by stakeholders, including but not limited to the concerns publicly raised by the National Industrial Transportation League, the International Longshoremen’s Association, and the Global Shipper’s Forum,” Doyle said.

Among the various concerns Doyle and other FMC members have expressed about the proposed alliance are a reported vessel reduction once the proposed alliance is consummated and a lack of significant filing with regulatory authorities in Europe, China or the US.

Cargo owners have lobbied against the agreement since it was announced saying that it could create a monopoly and put smaller shippers out of business.

A 15-day period for interested parties to comment on the proposed agreement opens this week.

The three carriers announced in June that they intended to begin cooperating in 2014 on routes covering Asia to Europe as well as transpacific and transatlantic routes to the United States.

Early estimates by Maersk Line’s chief trading and marketing officer put market control of such an alliance at about 42 percent on the Asia to Europe route, 24 percent on the transpacific routes, and 40 to 42 percent on the transatlantic route.

The three parties filed the P3 Network Vessel Sharing Agreement with the FMC in October. Pursuant to regulatory statute, agreements filed with the Commission become effective after 45 days, but the Commission can request additional information and documents from the filing parties necessary to complete the required statutory review.

Upon receipt of complete and adequate responses to the request for additional information, a new 45-day period begins.

The Maritime Commission’s scheduled to discuss the alliance proposal with officials from China and Europe on Dec. 17 in Washington DC.

World’s Largest Ship Officially Named

Maersk Line’s newest vessel, which is for now believed to be the largest container vessel in the world, was named June 15 in a ceremony at the Daewoo Shipbuilding & Marine Engineering shipyard in Okpo, South Korea.

The ship now bears the name of the company’s late owner, Mærsk Mc-Kinney Møller, who died in April 2012 at the age of 98. The naming was officially performed by Ane Mærsk Mc-Kinney Uggla, Mærsk Mc-Kinney Møller’s youngest daughter.

“As you sail the waters of the world, may your journeys be smooth and your tasks successful,” Mærsk Mc-Kinney Uggla said to the ship during the naming. “May you bring happiness to your crew, may you be a safe haven for all who board you and may you bring pride and prosperity to all.”

The ship is the first Triple-E vessel – Economy of scale, Energy efficiency and Environmentally improved – to join the Maersk fleet, and has a capacity of 18,000 TEUs. Its launch is the first of five planned for Triple-E vessels in 2013, with several more expected to join the fleet in 2014.

A total of 20 Triple-E vessels are expected to be gradually phased in over the next couple of years on the existing route between Asia and Northern Europe.

Triple-E vessels, according to Maersk, will consume about 35 percent less fuel per container than the 13,100 TEU vessels being delivered to other container shipping lines in these years and will also reduce CO2 emissions by more than 50 percent per container moved, compared to the industry average CO2 performance on the Asia-Europe trade.

A video of the ship’s naming can be viewed at http://vimeo.com/68399450.

 

 

Long Beach Receives Best Seaport Award

The Port of Long Beach received the award for best North American seaport at the 2013 Asian Freight and Supply Chain Awards on May 9 in Beijing.

The award recognizes the best ports as judged by importers, exporters, and logistics and supply chain professionals. The POLB beat out nine other ports for the honor this year, including the ones in Los Angeles, Oakland, Seattle and Vancouver. This marks Long Beach’s 16th win in the past 18 years in the best seaport category.

“We deeply appreciate this recognition, which comes from members of the supply chain industry,” said Port of Long Beach Executive Director Chris Lytle said. “We thank our customers, the Asian Freight and Supply Chain Awards and Cargonews Asia for this honor.” The annual Asian Freight and Supply Chain Awards, also known as the “Shippers’ Choice” awards, are based on an annual poll of thousands of professionals in freight transportation services. The awards are organized each year by the Cargonews Asia shipping publication. This year’s event was the 27th annual.

Awards are given in many categories, including best shipping lines, container terminals, air cargo terminals, airports and rail haulers.

Among this year’s other winners were Evergreen Marine, which received the award for Best Shipping Line – Transpacific; Maersk Line, which won the Best Global Shipping Line award; and Kerry Logistics, which was named Best Logistics Service Provider – Sea Freight.

Maersk Line Hires Microsoft Exec

Maersk Line has hired Stephen Schueler as its Chief Commercial Officer, effective May 27. Schueler, a 46-year-old American, comes to Maersk from Microsoft Corp., where he was the head of global retail sales and marketing.

He takes over for former Maersk Line CCO Lucas Vos, who submitted his resignation in February after seven years with the company. Vos’ last day was May 1.

Schueler had only been with Microsoft since August 2012, but prior to that, he spent more than 20 years with Procter & Gamble, where he utilized his sales and management skills in a variety of roles across Europe, South America and Asia before becoming the company’s head of global retail sales.

“Stephen has developed and led the global sales operations of two of the world’s largest and most prestigious companies with great results. We are focused on improving the way we sell our services to customers in order to reach volume and profit targets and Stephen brings valuable insight that we hope to leverage,” Maersk Line CEO Søren Skou said. “Combined with extensive international sales experience, he is exactly what we are looking for to further strengthen the Maersk Line sales force.”

With Maersk Line, Stephen will be responsible for over 9,000 Maersk Line employees in 125 countries, which includes the global country organizations and all global sales, customer service and communication related tasks.

He’s also expected to focus on sales efficiency, value selling and customer needs, according to Maersk.

First Maersk Triple-E Vessel to Join Fleet Soon

Maersk Line says its first-ever Triple-E vessel – Economy of scale, Energy efficiency and Environmentally improved – is due to join its fleet by the end of June. With a capacity of 18,000 20-foot containers, the Triple-E would be the largest container ship ever built.

The June launch is expected to be the first of five for Triple-E vessels in 2013, with several more joining the fleet in 2014.

The Triple-E, according to Maersk, will consume about 35 percent less fuel per container than the 13,100 TEU vessels being delivered to other container shipping lines in these years and will also reduce CO2 emissions by more than 50 percent per container moved, compared to the industry average CO2 performance on the Asia-Europe trade.

The Triple-E is built for the Asia-to-Europe service, Maersk Line’s most important trade lane. The company says its plan is to phase in the Triple-E vessels on its AE10 service, which currently calls at 13 different ports in Asia and Northern Europe.

The launch will come at a challenging time: volumes on the trade shrank by five percent in 2012 and are expected to grow by just one percent in 2013, according to estimates by industry analyst Alphaliner.

However, Maersk Line says it is monitoring demand closely and is ready to adjust capacity accordingly including returning chartered vessels to leasing partners, recycling excess tonnage, idling parts of the fleet and further implementing slow steaming.

Maersk Annual Profits Up

The AP Moller-Maersk Group says it recorded a profit of $4.0 billion in calendar year 2012, higher than the most recent announced outlook of around $3.7 billion, which had been forecast in November 2012.

The company’s profit margin was negatively affected by a decline in Maersk Oil’s share of production and impairment losses of net $405 million, of which $268 million was related to Maersk Tankers in the third quarter.

But that loss was countered by an $899 million settlement of an Algerian tax dispute in the first quarter of the year, according to the company, combined with improved volumes, rates and unit costs for Maersk Line.

“After a difficult start, Maersk Line improved its performance and the Group achieved a result above last year’s, both in terms of net result and in underlying performance,” Maersk CEO Nils Andersen said in a statement.

Regarding subsidiary companies within the company, Maersk Line earned a profit of $461 million, which was down from 2011’s $553 million; however, Maersk Oil’s profit of $ 2.4 billion was up $300,000 from the previous year. APM Terminals turned a profit also, earning $723 million, up from $648 million in 2011.