World News
Clarksons Platou: Maersk Line has Won the Price War
Clarksons Platou Securities AS (Clarksons Platou) Thursday said that Maersk Line has successfully reclaimed their share of the global container freight shipping market by aggressively lowering its rates to win a price war, Shipping Watch reports.
During the first quarter of 2015, Maersk Line is said to have lost market shares as freight rates dipped 1.6 percent.
"Our reading is that Maersk Line did win the price war, as they aggressively cut prices to recapture market share and is now in a much better footing with utilisation back to 'normal.'"
Nils Smedegaard Andersen, CEO for Maersk Group, commenting on Maersk Line's Q2 and half-year results, said "we have performed slight adjustments to our targets for Maersk Line, somewhat a result of the lessons from the first quarter, in which we were pressured by price competition or opted not to enter a price war."
"As such, we've said that we want to grow at least in line with the market.
"The purpose of this statement is to send a signal that we plan to maintain our position as industry leader. If anyone should have any other ideas, we'd like to emphasize this fact."
Maersk Line is said to maintain a target of earning five percentage points more in market shares that the industry average, as measured by revenue.
In June, it was reported that spot rates on the Asia-Europe route were reaching record lows, sparking a price war that saw some carriers competing with as little as $150 per TEU.
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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