World News
Maersk to Shift Focus Away from Containers
In the face of a volatile container shipping market, A.P. Moller-Maersk (Maersk) is shifting its focus toward its oil, terminals, and drilling businesses, Reuters reports.
The Danish company has suffered from falling freight rates and a glut of ships, and it now says it will increase the share of invested capital that it puts into Maersk Oil, APM Terminals, and Maersk Drilling to 50 percent from a previous total of 34 percent.
The company's investment in its Maersk Line would fall to between 25 and 30 percent of the group's invested capital, down from 38 percent today.
Chief Executive Nils Andersen said the company aims to deliver returns on invested capital of above 10 percent in five years.
"We will aim for more stable results," Andersen said.
"Today we see the group as a group of individual businesses."
In the second quarter of 2012, Maersk reported profits of $227 million from Maersk Line, which had lost money in the first quarter and in fiscal 2012.
For the same quarter, it made profits of $468 million from Maersk Oil, $160 million from APM Terminals, and $101 million from Maersk Drilling, and all those businesses also showed profits in Q1 and in 2011.
The company has taken steps in recent months to respond to a slow shipping market, including raising rates and reducing speeds.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 548.00 | 0.50 | 677.50 | 2.00 |
| Rotterdam | 513.00 | 0.50 | 649.00 | 3.00 |
| Houston | 544.50 | 2.50 | 675.00 | 4.00 |
| Fujairah | 541.50 | 2.50 | 744.00 | 3.50 |
| Global 20 Ports Average | 572.00 | 2.50 | 758.00 | 2.50 |
| Global 4 Ports Average | 536.50 | 1.50 | 686.50 | 3.00 |
| Global Average Bunker Price | 624.00 | 2.50 | 801.00 | 3.50 |
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