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already seen significant improvements on the operational side as

well as reductions in carbon emissions from increased use of
automation.

In the meantime, Maersk will continue to secure a financial solidity

and guides for a stable underlying profitability and cash
generation through continued capital discipline with CAPEX close
to depreciation.

“We will continue to execute on the strategy through capital

discipline,” said Skou who went on to add, “Given the financial
strength of the company we are able to maintain a strong balance
sheet and use cash to invest in business, acquisitions, ordinary
dividends and lastly return excess cash through share buy-back or
extra-ordinary dividends.”

Maersk also announced the signing of the UN Global Compact

commitment letter to a “Business Ambition of 1.5degs C”,
committing to set a long-term science-based target to reach net-
zero emissions across the full value chain no later than 2050 and
set interim targets in line with Science Based Targets initiative
A.P. MOLLER – MAERSK ACCELERATES criteria.
TRANSFORMATION TO INTEGRATED
SERVICE
AP Moller Maersk said its integrator strategy that will see the company transform into
a comprehensive, customer-facing door-to-door logistics service will offer the carrier
significantly improved profits.

Speaking at Maersk’s Capital Markets Day Maersk CEO Søren Skou told analysts and
investors that the company is ready to build three divisions with strong synergies
between them, with a customer focus, that will drive value creation through
digitalisation.

”Today, we are rapidly transforming our A.P. Moller – Maersk in line with our strategy.
We have come far, but we are not yet done. We continue to see a significant
opportunity in the market for global end-to-end logistics and are confident that we
can continue to deliver value generating returns above 7.5%, ROIC, considering the
extraordinary earning levels of 2021 an average of above 12% for the five year period
2021-2025,” said Skou.

Maersk’s value creation model will links Logistics and Ocean through customer
synergies and Ocean and Terminals through financials and operational synergies.
And while Ocean and Terminals are expected to deliver steady returns Logistics and MAERSK SEES A ‘SOFT
services will be the major profit driver.

“Whereas, Ocean will continue to deliver stable earnings levels and [will be] strong
enabler of the company’s strategy, Logistics & Services aims for significantly higher
growth rates and new ways of addressing customers needs,” said Maersk.
In addition, Maersk will provide institutional investors and financial analysts with
updated ambitions on the development and progress in the 2021-2025 horizon.
LANDING’ FOR SOARING
OCEAN FREIGHT RATES
The world’s largest container shipping carrier expects a gradual
decline in ocean freight rates from near record highs while it aims
to boost slumping service reliability by the end of the year.

”With our portfolio, our approach, and the need that we see across customers and
verticals, we are confident that Logistics & Services has become our growth engine,
capable of growing organically at 10% per year while maintained a strong EBIT margin
above 6%,” noted Vincent Clerc, CEO of Ocean and Logistics at A.P. Moller – Maersk.
To support this growth, Maersk will invest around US$1 billion in capital expenditure
over the coming two years and continue to complement this with mergers and
acquisitions to build capabilities and progressively scale the business.
That was the message from Maersk at an investor conference
Tuesday. Booming global trade has sent the cost of containers
soaring and Maersk has been among the biggest beneficiaries.
Those rates should return to more normal levels by 2022, the
company indicated.
CEO Soren Skou said Maersk wants to “ensure a soft landing from
the current elevated freight rates.”

Moreover, the company said it will focus on best-in-class returns for its terminals That’s not to say rates are going back to pre-pandemic lows. Johan
businees, and over the next five years the company plans to invest approximately Sigsgaard, head of ocean products, said “as it comes to an end, it
US$600 million in total on automation in around 30 terminals. The company has will normalize at a different level and we expect rates will

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normalize at a different level and we expect rates will normalize at a level above historical.”

Despite the soaring rates, vessels are increasingly delayed for most carriers, and the Copenhagen-based company’s nearly 80% on-time measures before
the pandemic are almost half that level this year. In the slide presentation, Maersk sees those improving by the end of this year.

Here are a few more key points:

A strategic review is underway of Maersk’s of ownership of its box producing unit.

A higher share of long-term contracts will help ensure the predictability of ocean rates.

It said it will deliver average returns above 12% in 2021-2025, helped by synergies from its logistics and services, ocean and terminals businesses.

Digital technology unifying its logistics, ocean and terminal businesses to better serve customers that want more flexible and less complex supply chains.

Technology has helped it to “swiftly adjust” container capacity to meet demand.

“While volatility will be reduced, there will still be a level of volatility in the future,” said Vincent Clerc, CEO of ocean and logistics. Maersk will be “in a better
position to handle shocks” going forward and will be more profitable, he said.

Maersk shares, which hit an all-time high on Monday, were down more than 3% midway through the investor conference.

INDIAN RAILWAYS HAS MOVED 5000 METRIC TONNE OF LMO

Indian Railways, which is now delivering oxygen to eight states, has moved 5000 metric tonne of liquid medical oxygen (LMO) as on Monday. . The national
transporter has more wagon capacity available and is ready to move more oxygen trains, the Chairman Railway Board and CEO Suneet Sharma said in a
virtual press meet on Monday.

“We have identified lower height wagons and placed running staff and wagons near the loading points,” said Sharma adding that they are in touch with
customers for long distance movement.

TOUGH TIMES FOR EMPLOYEES

Indian Railways has not been untouched by challenges from ongoing pandemic and several of its employees are being treated through home isolation, at
guest houses, apart from the railway and other hospitals.“Our employees are also facing challenges,” said CRB and CEO Sharma.

To protect employees, working conditions for frontline staff like supervisors, drivers (locomotive pilots), guards, maintainers, ticket checking staff, Railways
has tweaked its rules to allow people to function in a contactless manner with minimal interaction with other people. Also, the national transporter – that
has offices spread across varied locations in the country – has asked its General Managers of its Zones to provide work from home based on the prevailing
local conditions.

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Having lost 1,952 lives in the last one year to Covid-19, the transporter is seeing about 700-1000 active cases a day now said Sharma, adding that the
recovery figure is improving. Railway hospitals’ capacity is also being improved by adding ventilators, oxygen plants.

Railways Unions All India Railwaymen’s Federation have sought compensation of 50 lakh for the lives lost, and National Federation of Indian Railwaymen
has sought Covid-19 allowance of at least 25 per cent.

Goods movement by trains continue to see good growth with the first ten days of May registering 10 per cent growth against the same time last year,
informed Sharma adding that Railways continues to be the engine of economic growth and is ready to provide all sorts of transportation services.

On the passenger movement front, Railways is running 90-95 per cent suburban trains in Mumbai and Chennai while it has stopped suburban services in
Kolkata (after West Bengal Government’s request to do so though inter-city services are going on), added the CRB and CEO. Many zones of Indian Railways
had cancelled several of their AC trains.

Sharma termed oxygen express Indian Railways has delivered nearly 4700 Metric Tonne (MT) of LMO in more than 295 tankers to various states across the
country.

Meanwhile, on Sunday, Oxygen Expresses delivered record 831 MT of LMO, a record for a single day. Till the Monday afternoon, 293 Metric Tonne of LMO
had been offloaded in Maharashtra, 1334 MT in Uttar Pradesh, 306 MT in Madhya Pradesh, 598 MT in Haryana, 123 MT in Telangana, 40 MT in Rajasthan
and 2011 MT in Delhi. First Oxygen Express to Karnataka has also started its journey from Tatanagar in Jharkhand and is on the way to Bengaluru with 120
MT of Oxygen.

INDIA’S COVID-19 SURGE TO UNLEASH DRASTIC DISRUPTIONS IN

MARITIME INDUSTRY: SOURCES
The ongoing second wave of the deadly coronavirus pandemic in India is expected to snowball into a major disruptor for the shipping and logistics industry
as several ports globally are shunning ships which have called at any location along the South Asian coastline.

Bunkering operations could also come in the ambit of this catastrophic wave that has engulfed India, although no major disruptions have been noted yet as
demand has been lackluster, bunker industry sources said.

The impact on global shipping logistics from India’s isolation could become a very significant market disruptor by causing delay in supply of ships, said Ole-
Rikard Hammer, oil and shipping analyst with Oslo-based Arctic Securities. This will obviously tighten the tankers’ supply, Hammer told.

There are serious concerns over several ports refusing to allow crew changes in those ships which have called on Indian ports over the previous 14 days.

Singapore has already banned ship crew changes for those with recent India-related travel history while Fujairah — another major bunkering hub — has
also prohibited such crew changes from vessels arriving from India.

Voyage from India to several ports in Asia is less than two weeks, and this implies that the ship will have to idle away for a few days before being eligible to
enter its next port of call for bunkering, loading, unloading, crew change, dry docking or even routine maintenance.

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Bunkering schedules will go awry, daily earnings will be hit and ships will seek to offset it by seeking higher freight for India-bound voyages, several shipping
sources in Asia and Europe said.

If things play out similar to what was seen last year during the first lockdown in India, there will be a sharp drop in local demand and most of this difference
will be diverted for exports, said Ralph Leszczynski, who heads research at Genoa-based shipping broker and consultancy, Banchero Costa.

Due to ongoing refinery maintenance season in North Asia, Indian refiners may capitalize on this by giving a boost to product exports, particularly to
Southeast Asia and Australia, Leszczynski said. This will help revive freight of Long Range I and II tankers, as until now refinery utilization levels in India has
remained high, he said.

According to the latest government data, India’s average run for all categories of refineries in India rose to 99% in March compared with 97% in the previous
month. An Indian refinery source said in the week ended May 8 that run rates were still around 90%-95% and there was no immediate plan to cut them.

Bunkering impact trickling in

India, home to 12 major ports, has already reported a drop in cargo handling traffic, which could be further exacerbated should a nationwide lockdown be
imposed.

According to the Indian Ports Association, the provisional traffic handled at these ports during April 2020 to March 2021 fell 4.59% year on year to 672.6
million mt.

India’s Prime Minister Narendra Modi has abstained from implementing a nationwide lockdown so far this year. This comes after such a lockdown last year
battered the economy severely.

However, a nationwide lockdown could be a possibility as pressure mounts due to the difficult situation, sources told. In any case, a series of over two dozen
province-specific lockdowns across the country are already being implemented.

On the bunkering side, the spike in COVID-19 cases has not led to a significant impact yet, unlike some other oil product markets, as demand has been tepid
and shipowners were making preparations to avoid delays, sources said.

For vessels bunkering around India’s ports, shipowners have begun arranging for bunkering operations in open international waters, and to avoid berthing
as far as possible to mitigate the risk of infection, market sources said.

Still, the time taken for bunkering operations has ‘definitely’ increased at some ports because one needs to follow various safety protocols, a bunker trader
said.

In the port of Visakhapatnam, for instance, where bunkering is carried out through tank trucks to barges and then to vessels, supply disruptions were heard
due to fewer truck drivers, another local trader said.

However, some ports such as Mumbai and Kochi have been relatively unscathed, market sources said.

First week of May started with good business in Mumbai and operations have been normal, a trader there said.

Prices at Mumbai were still competitive to Colombo, indicating that there were enough product availability in the country. The delivered Marine Fuel 0.5%
sulfur price at Colombo averaged $555.21/mt in April compared to $535.17/mt in Mumbai for the same month, according to data.

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MUMBAI PORT TO BUILD NEW CONTAINER TERMINAL

The Mumbai Port Trust (MbPT) has received permission from the Maharashtra Coastal Zone Management Authority to build a new container terminal and
two offshore berths.

The work is be carried out without reclaiming any land that could have had an adverse ecological effect and affected the flamingo population.

Mumbai port, which is one of the two oldest ports in India, has been steadily losing its container cargo over the years to Jawaharlal Nehru Port (JNPT), which
had been built by the central government in 1989 as a satellite port to take the load off MbPT.

But while JNPT went on to attain the position of the country’s top container port, and barged into the top-30 list of the world’s top container ports in 2018
itself by crossing the 5m teu throughput mark, MbPT has struggled to reach even a lowly 20,000 teu in the financial year 2020-21. Its container throughput
was 18,796 teu.

While further ground expansion at the already crowded JNPT would be difficult, and the port has already lost its pre-eminent status to Mundra port, owned
by Adani Ports and Special Economic Zone (APSEZ), there remains some scope for increasing container throughput at MbPT, which is handling the export of
cars from its offshore container terminal located at Ferry Wharf.

MbPT is now trying to regain some level of container throughput by building a box terminal and two offshore berths, which will be constructed by filling the
basins of Princess and Victoria docks.

“This is actually an extension of an earlier project, which works on the public-private partnership model,” said MbPT chairman Rajiv Jalota. “Since the
Shipping Ministry wanted larger container ships to come directly to Mumbai, we constructed a terminal inside the sea and connected it with a road on stilts.

“We have already completed two berths and the approach trestle, capital dredging for the berth pocket, filling of Princess and Victoria Docks, rail container
depot, approach channel and turning circle dredging. But there is no land reclamation; we are only filling old dock basins.”

The port is also in the process of procuring cargo handling equipment, developing the container yard and conducting further capital dredging in the basin
of the natural harbour which has seen a lot of silt accumulation over the years.

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