Maersk Line Eyes Greater Market Share

CEO Søren Skou said the company wants to prove it's the most competitive

With strong profits reported in recent quarters, Maersk Line is considering departing from its strategy of "growing with the market" and instead seeking greater market share, industry news site ShippingWatch reports.

"We're in the process of establishing ourselves as the most competitive company in the industry," said CEO Søren Skou.

"If we can demonstrate that we are the most competitive, then that would whet our appetite in terms of further growth."

Despite a difficult market and a lack of revenue growth, Maersk Line has improved its bottom line with cost cuts and closures of money-losing routes.

In Q3, it increased its profits 9 percent year-over-year even as revenues declined by 8 percent.

"If we have routes where we're not making money, we need to have a plan for how to do start doing so," Skou said.

"There are various knobs to turn, including slow steaming, which saves money and leads to a better economy, or vessel sharing agreements, where you collaborate with other parties.

"If we can't find something in our toolbox to improve the situation on a losing route, then we'll have to shut it down."

Skou said there have been fewer acquisitions, bankruptcies, and collaborations in recent years than might be expected given the downturn in the shipping industry.

"This can be attributed to the ownership structures in our industry, where public funds are involved, especially in the Asian carriers," he said.

"This makes it difficult to achieve consolidation, so we're not predicting a big wave of consolidations, but we'd be happy and surprised if it did happen."

Drewry said recently that a number of large carriers, including Maersk Line, have gained market share over the past year, but the growth may have pushed down freight rates.