Brief

A.P. Moller-Maersk eyes supply chain solutions future

Dive Brief:

  • A.P. Moller-Maersk's internal split will allow the group's Transport & Logistics division to offer full supply chain services, including customs clearing, inland transportation and cargo insurance, the Financial Times reported Tuesday.
  • Shipping company Maersk Line, port operator APM Terminals, freight forwarder Damco and refrigerated container maker Maersk Container Industry together make up the Transport & Logistics division, allowing the groups to offer joint services to clients.
  • The company's supply chain solutions ambitions will help it stabilize pricing despite volatile markets in the container shipping industry, Financial Times reports. The company's recent acquisition of Hamburg Sud should also help shore up revenues.

Dive Insight:

In times of strain and chaos, businesses seek differentiation and security, often by maximizing synergies and profits gleaned from alternate revenue channels.

UPS, FedEx and DHL all began as simple carriers, but a handful of acquisitions and sound business strategies allowed them to grow to the parcel shipping behemoths they are today. Now, all three companies offer a wide set of supply chain solutions services. A similar story can be found in former expedited shipping specialist XPO Logistics, which launched itself to Fortune 500 status with a string of acquisitions over the past the decade. XPO now offers numerous supply chain solutions services.

Maersk is now attempting a similar task. By creating a single umbrella division to handle services throughout the supply chain, Maersk aims to become an indispensable partner, rather than just a service provider. The market is crowded, but Maersk hopes its one-stop shop will help it gain traction. 

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Filed Under: Logistics Freight
Top image credit: Maersk Line