EMEA News
Maersk Line Prepared to Withdraw Capacity to Increase Utilization
Maersk Line says it is prepared to withdraw services in order to make up for a drop in utilization, Shipping Watch reports.
"We have different tools in the toolbox that we need to use. One of them is that we will withdraw capacity where it's needed," Jakob Stausholm, chief financial officer for Maersk Line, told Shipping Watch.
"This could concern services in Asia-Mediterranean and West Africa."
Maersk Line's inability to fill vessels was revealed in its first quarter 2015 report, which otherwise beat analyst expectations with a 30 percent increase in profits to $1.6 billion.
Demand for containers in Q1 2015 was said to have been lower than expected with growth of 1.8 percent.
"The global economy grew less than we had thought; this has affected the utilization of the vessels and we must react to this," said Stausholm.
"We won't know for another few months whether this has had an effect on our market share, but there is no doubt that we will do what it takes to defend our ambition of growing with the market."
Maersk Line stated in its Q1 2015 report that volumes for the period decreased by 1.6 percent saying there was "less than satisfactory development in volumes and vessel utilization."
The decline was played down by Maersk Group CEO Nils S. Andersen, who called the change "very marginal"
"If we want to catch up, we will catch up, so I wouldn't worry," he said.
Maersk Line in January predicted that long-term freight rates will remain under pressure in the East-West box markets as overcapacity continues to feature on key routes.
