World News
2M Will Save Maersk Line $350 Million a Year
A.P. Moeller-Maersk A/S (Maersk) says the approval of the 2M alliance between its container-shipping line, Maersk Line, and Switzerland's Mediterranean Shipping Co. will save it $350 million annually, reports Bloomberg.
Denmark-based Maersk Line, the world's largest shipping container company, is currently awaiting approval from both the U.S. Federal Maritime Commission (FMC) and Chinese regulators on a deal which would see the world's largest and second largest container companies unite in a new vessel-sharing agreement (VSA).
During a presentation Wednesday, Soeren Skou, Maersk Line's CEO, said that the company would “continue to drive out costs and will have a deflationary mind-set."
Skoiu stressed that in the current market of declining rates, the “lowest costs win.”
Maersk Line also has plans to invest $3 billion a year from 2015 to 2019 on new vessels, though Skou noted the company would not need to add new ships until at least 2017, one year later than previously predicted.
However, he added that Maersk's current orderbook was not sufficient to grow with market.
The new ships were said to help in lowering costs by being the biggest carrier on all services the company operates, while a surplus of smaller container ships made it attractive to charter ships in that segment.
The FMC extended its review of the 2M deal earlier this week after Chinese regulators vetoed the deal's predecessor, the P3 alliance, earlier this year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.00 | 2.00 | 767.50 | 11.50 |
| Rotterdam | 600.00 | 8.00 | 751.50 | 13.00 |
| Houston | 627.50 | 9.00 | 796.00 | 11.50 |
| Fujairah | 649.50 | 0.00 | 889.00 | 0.50 |
| Global 20 Ports Average | 665.00 | 0.50 | 864.00 | 6.50 |
| Global 4 Ports Average | 630.50 | 5.00 | 801.00 | 9.00 |
| Global Average Bunker Price | 722.50 | 2.50 | 922.50 | 3.00 |
Popular Now More
-
Apr 19The firm has chartered the 7,994 DWT barge Margherita to add to the operation, operated by Fratelli Cosulich. -
Apr 18Singapore's authorities are in the process of developing a regulatory framework for a methanol bunkering licence, and plan to call for applications for the licence by the end of this year. -
Apr 19The company is looking for candidates with proven experience in bunker trading and demonstrated leadership experience.