The shipping behemoths AP Moller-Maersk and CMA CGM have created new subsidiaries to focus on niche markets and emerging markets, as reported by Travel Winds.
Geographical organisation
To incorporate the developing markets of the Middle East, Africa, and the Indian subcontinent, Maersk has created a division (IMEA).
Richard Morgan has been named the division’s regional managing director for West/Central Asia and Africa by the Danish airline.
According to the corporation, the restructuring will allow it to take advantage of synergies in geographically advantageous areas.
To do this, Morgan said, “we must change and organise ourselves in a way that is similar to how the majority of our clients are organised geographically.”
Dropping demands
Especially in the post-pandemic age, where demand is dropping, he continued, market conditions were continuously shifting, which was why the reorganisation had occurred.
Separately, CMA CGM announced that it would create a division to concentrate on specialised shipping operations.
The company’s expansion into markets including the ro-ro, ropax sector, and car carrier industry will be driven by the new division.
In order to “help its recovery,” the French carrier has previously invested €25 million ($26 million) in Brittany Ferries, a European ropax operator.
Subject to regulatory permission, it also plans to acquire French ropax and ro-ro operator La Meridionale. According to reports, the business has been losing money for a while.
In comparison, CMA CGM projected last week that its 2022 full-year profit will be $24.9 billion.
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Source: Travel Winds
