Asia/Pacific News
Maersk Line: We're Not Profiting from Low Bunker Prices
Despite the continued falling price of crude, and by association, bunker prices, Maersk Line Asia Pacific CEO Lars Mikael Jensen said that the company was not profiting from lower fuel prices, reports Singaporean media.
Jenson said that while the bunker adjustment factor has so far allowed the company to adjust their pricing depending on whether fuel prices rise or fall, it has also prevented Maersk from realising any significant savings.
"Our long-term contracts have a mechanism called bunker adjustment factor, which allows us to adjust our pricing depending on the rise and fall of bunker prices. This ensures mutual hedging and we're not profiting from low fuel prices," he said.
"How the lower fuel prices can benefit us is that it will potentially stimulate economic and trade growth. We have yet to see that happen."
Jenson said that Maersk will be pinning some of its hopes on the growing South-east Asian trade, which he says is expected to grow 6-7 percent next year, versus the 3-5 percent predicted globally.
The goal, he says, is to ride that wave and grow Maersk Line in the Asia-Pacific region.
"We are only in the middle of the pack when it comes to regional market share - but we will not grow that by being dirt cheap.
"We will grow because of our operating efficiency, our product range and our ability to help global customers enter new territories in the emerging South-east Asia."
A.P. Moeller-Maersk CEO Nils Anderson had previously announced in the first half of November that the company would be passing along the savings resulting from the oil price collapse onto customers.
