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International Shipping
Weakening ocean market makes Maersk's D2D play intriguing
Date:2023-07-19 Readers:
MAERSK's 15 per cent increased share of direct shipper bookings on the transpacific over the past three years is happening with its door-to-door forwarder strategy, reports New York's Journal of Commerce.

But as demand on the Asia-North America trade lane weakens, some logistics service providers have questioned whether Maersk's end-to-end model can survive in an extended environment of low volumes and tepid rates.

Carrier-direct business with Maersk reached 83.8 per cent in 2022, up 3.97 per cent year over year and 15.3 per cent higher compared with pre-pandemic 2019, according to PIERS data.

Maersk CEO Vincent Clerc expressed his satisfaction with the growth of direct shipper business, claiming that Maersk had not lost any of its 200 main customers.

"It is the larger companies that tend to choose to work with direct asset providers, and some of the [small and medium-sized enterprises] are more geared towards the freight forwarder business model, so we're focusing on the customers that appreciate the direct relationship with asset providers and grow our business through working with them," he said.

While some analysts have expressed scepticism over the Maersk integrated logistics strategy, but John McCown, author of the monthly McCown Report, said that Maersk increasing its share of direct BCO business was the best approach from multiple angles.

Said Mr McCown: "Container shipping companies should be dealing directly with folks that have actual containers to ship. NVOs and the other intermediaries are just that and have no actual cargo. Dealing with them is in effect throwing in the towel on your business model and acting more like a vessel or space charterer and letting the intermediary act like the carrier, which it isn't."

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