MAERKS

SHIPPING
LINE
Kezia Kinantya Atinirra Simson - 04211741000031
MAERSK AT
Maersk Line is a Danish international container

GLANCE shipping company and the largest operating subsidiary of

the Maersk Group. It is the world's largest container shipping

company by both fleet size and cargo capacity, serving 374

offices in 116 countries. Maersk Line operates over 786 vessels

and has a capacity of 4.1 million TEU. The company was

founded in 1928.

Source : en.wikipedia.org/wiki/Maersk_Line.
Mr. Møller founded Maersk Line in 1928 and acquired the
History
company’s first five tankers that same year. On 12 July 1928, the

vessel Leise Mærsk left Baltimore on its first voyage from the

American East Coast via the Panama Canal to the Far East and

back. The cargo consisted of Ford car parts and other general

cargo. This heralded the start of Maersk's shipping services.

Source : maersk.com/about/our-history/the-founding-family.
 In 1999, Maersk entered into an agreement on acquisition of Safmarine
Container Lines (SCL) and its related liner activities. Safmarine Container
Lines joined the A.P. Moller – Maersk Group as an independent unit with its
own liner activities.

In May 2005 Maersk announced plans to purchase P&O Nedlloyd. Maersk

completed the buyout of the company on 13 August 2005, Royal P&O
Nedlloyd shares terminated trading on 5 September.
ACQUISITED
COMPANY

On 10 December 1999, the A.P. Moller Group acquired the international

container business of SeaLand Service Inc. The business was integrated with
the A.P. Moller Group companies and as part of the integration.

Source : en.wikipedia.org/wiki/Maersk_Line.
 On 1 December 2016, it was announced that Maersk Line and the Oetker Group
had reached an agreement for Maersk Line to acquire 100% of the shares in the
German container shipping line Hamburg Süd. Following final approvals by the
competition authorities, the transaction closed on 30 November 2017 on
payment of the purchase price to the Oetker Group.
ACQUISITED
COMPANY

Source : The Annual Report for 2017 of A.P. Møller - Mærsk A/S
 BUSINESS
As MODEL
the leading global player in container
shipping and with a sizeable share in container
terminals, A.P. Moller - Maersk enables people
to trade and communities to grow by
transporting goods anywhere.

Source : The Annual Report for 2018 of A.P. Møller - Mærsk A/S
STRATEGY
Container logistics play a significant role in global trade by reducing trade barriers through reducing the cost of transportation. Maersk has
played a vital role in container logistics for more than 40 years and takes pride in this contribution to global growth and wealth. Maersk’s
strategy is to accelerate that contribution by reducing complexity and waste along the global containerised supply chains. Maersk has designed
the strategy around its customers’ needs and pain points, hereby creating a market opportunity that will deliver value to customers as well as
profitable growth and improved performance for Maersk.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
SUPPLY CHAIN
As part of becoming the global integrator of container logistics, focus
on growing the nonOcean business is vital. Terminals & Towage, part
of the non-Ocean segment, currently provides a steadier cash flow
than the Ocean segment, and will continue to optimise the portfolio
and improve profitability.
Hence, inorganic growth may be required in the form of
bolt-on acquisitions to build the capabilities needed in
various parts of the Logistics & Services segment and to
harvest synergies across the supply chain.

Source : The Annual Report for 2018 of A.P. Møller - Mærsk A/S
 RISK
TheMANAGEMENT
purpose of A.P. Moller - Maersk’s risk
management is to identify and assess the risks to
operations as well as strategic goals, and to
immediately mitigate them to acceptable risk
levels. A structured Enterprise Risk Management
process ensures that risks across multiple
categories are regularly identified, assessed and
reported, and that decisions are made on the
treatment of such risks

Source : The Annual Report for 2017 of A.P. Møller - Mærsk A/S
 RISK
MANAGEMENT
Risk management at Maersk is strategically
focused and designed to contribute to the
achievement of the company’s business objectives
in the medium term and to ensure the longevity of
the company in the longer term.

The risk management function monitors the status

of each key risk, including the progress and effect
of the mitigation action plans, and summarises the
status in quarterly reports to the Executive
Leadership Team. Where the progress of
mitigating actions is falling behind schedule, or
where mitigating actions are not achieving the
effect they were designed to have, the report will
highlight this, so that corrective action can be
taken.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
 SUSTAINABILITY
The link betweenSTRATEGY
business and sustainable, responsible
practices is growing stronger, as global challenges, such as
climate change and anti-globalisation grow.

The sustainability strategy encompasses expectations with a

non-wavering focus on responsible business practices with
all material issues, and four priority programmes that will
enable the companies to drive the development of large-scale
solutions that target some of the world’s major sustainability
challenges, while at the same time supporting business
development.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
• Multiplying the benefits of trade, enabling trade is core
to Maersk business strategy. The mission is to connect and
simplify supply chains to enable trade for customers and
for a growing world. In support of this mission, Maersk
innovating the processes and products of global container
logistics, and in broader terms, we are working to ensure
that trade serves as a positive contributor to global and
local development and growth.

• Changing the ship recycling industry, Maersk remain

committed to the programme, which aims to change the
ship recycling industry.

• Halving food loss, investing in unbroken cold chain

offerings is an important growth opportunity for business
on land. At sea already carry 27% of the world’s
refrigerated containers and 25% of the world’s food
commodities.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
• Responsible business practices, responsible behaviour is
part of the core values, and customers, suppliers, business
partners and governments all expect to conduct the
business in a responsible manner. In 2019, Maersk
launched an employee Code of Conduct, which now
forms the basis of all actions and activities carried out in
Maersk name.

• Integrating sustainability into, the business Over the

past two years, Maersk have worked to incorporate
sustainability into our commercial and operations
departments, making sustainability a much more
integrated part of decisio making, discussions with
customers and day-to-day business. Maersk have an
unchanged sustainability agenda in both scope and
ambition level, and with this further integration they aim
to ensure that sustainability is a fundamental and
inseparable part of how they do business.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
 Financial and operational
performance
Ocean segment
Ocean includes the ocean activities of Maersk Liner Business
(Maersk Line, Safmarine and Sealand – A Maersk Company)
together with the Hamburg Süd brands (Hamburg Süd and
Aliança), as well as strategic transhipment hubs under the
APM Terminals brand (Rotterdam, Maasvlakte II, Algeciras,
Tangier, Tangier-Med II, Port Said and the joint ventures
Salalah, Tanjung Pelepas and Bremerhaven). Inland activities
related to Maersk Liner Business are included in the
Logistics & Services segment.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
 Financial and operational
performance
Revenue was USD 28.4bn (USD 28.4bn), with a slight
decrease in volumes to 13,296k FFE (13,306k FFE) as a
result of weaker market growth and initiatives to improve
freight rates, which increased to 1,883 USD/FFE (1,879
USD/FFE).

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
The fleet consisted of 307 owned vessels and 401
chartered vessels at the end of 2019. The average
nominal capacity increased by 0.4% at an average of
4,132k TEU (4,115k TEU) for the full year. The total
fleet ended the year at 4,125k TEU with idle capacity
of 348k TEU (35 vessels), an increase from 78k TEU
(five vessels) at the end of 2018, mainly due to retrofit
of scrubbers.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
 Supply chain management activities, where Maersk manages
the customers’ supply chain.
• Intermodal refers to all operating activities under Maersk,
Safmarine and Sealand – a Maersk Company.
• Inland services are operating activities in inland service
facilities with the main revenue stream being container
storage, bonded warehousing, empty depot and local
transportation.
• Freight forwarding with sea and air freight continuing to
operate in a non-integrated way under the Damco brand
name.
• Other services include warehousing, distribution and other
value-added services as well as trade finance.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
Revenue decreased by 1.9% to USD 6.0bn (USD
6.1bn), impacted by decreasing revenue in sea and air
freight forwarding, partially offset by increasing
revenue in warehousing and distribution. Gross profit
increased by 8.7% to USD 1.2bn (USD 1.1bn) with a
gross profit margin of 20% (18%).

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
 • Terminal towage is a one-customer operation. The
customer is a port, a terminal or owner of an offshore
facility. The contract is for specific vessels, and the
customer determines which work the vessel performs. The
annualised EBITDA per tug measure is the relevant
measurement.

• Harbour towage is a multi- customer operation in a

Terminals & Towage includes gateway terminals involving landside activities
(being port activities where the customers are mainly the carriers), and towage
services under the Svitzer brand.
common user facility. The customers are vessel owners and
operators, either contracted for one to three years or booked
call-by-call. The number of operational tug jobs
(utilisation) is the relevant measurement.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S
Revenue from towage activities amounted to USD
695m (USD 692m), positively impacted by increases
in the Americas of USD 13m and in the Asia, Middle
East and Africa region of USD 14m, partly offset by
decreases in Australia of USD 20m and in Europe of
USD 4m.

Source : The Annual Report for 2019 of A.P. Møller - Mærsk A/S