- Each year about 90% of world trade is transported by ship. In addition to its fleet of 672 vessels, Maersk the world’s second largest container shipping company and runs one of the globe’s largest port terminal businesses with 64 terminals.
- To offset some of its risks the company is beefing up its end-to-end logistics business, investing in last mile delivery and air freight.
Each year about 90% of world trade is transported by ship, reports CNBC quoting the World Economic Forum.
Maersk is evolving to become a logistics powerhouse
While commodities like oil and grain make up 40% of that cargo, large steel containers, filled with appliances, smartphones, and couches, make up the remainder. With its fleet of over 670 vessels, Maersk, one of the world’s largest shipping companies, transports about one in five of those containers.
The company logged record profits in 2022 due in part to pandemic-induced buying and higher freight rates. But, like its rivals, Maersk is facing a range of challenges including Red Sea diversions, a drought at the Panama Canal and a potential strike by the International Longshoremen’s Association, the largest union of maritime workers in North America.
It also chartered the vessel that crashed into the Francis Scott Key Bridge in Baltimore earlier this week.
CNBC examines the issues facing Maersk, and its rivals Hapag-Lloyd and MSC, and looks at how the company is trying to transition for future growth.
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Source: CNBC
