A.P. Moller-Maersk has announced strategic changes to its organization as it moves to further integrate its container transport and logistics operations to “further improve customer experience and end-to-end service delivery.”
In a statement on September 1, the Danish shipping and transport group said the Safmarine brand will be integrated into Maersk “to enhance customers’ access to the global integrated offering.” Safmarine is an international shipping business offering container and break-bulk shipping services that was acquired by Moller-Maersk but did not integrate wholly into the group.
In addition, freight forwarder Damco’s air and LCL (less than container load) offering will be combined with Maersk’s logistics and services products to complement its end-to-end offering.
Also, a more simplified and customer-centric global Ocean & Logistics organization is being introduced, said Maersk.
“These changes represent a major step towards becoming an integrated container transport and logistics company, connecting and simplifying customers’ supply chains,” Moller-Maersk said.
“Our customers are at the heart of our vision. Their evolving supply chain needs are increasing the demand for multiple modes of transport and to meet these needs, we’re bringing our company’s expertise and capabilities even closer together. Taking these steps are key to accelerating our transformation,” said Vincent Clerc, CEO of Ocean & Logistics of Maersk.
“With the integration of Safmarine, we can present Safmarine customers with the full ocean and supply chain offering and more scale. At the same time, I’m very excited to have Safmarine’s passion for customers closer to Maersk by uniting our teams,” he added.
Due to the changes, the Safmarine and Damco brands will no longer be marketed by the end of 2020.
In addition, Maersk will simplify its organizational structure across Ocean & Logistics globally to further improve customer centricity and efficiency.
“As part of this, the back offices of Maersk and Hamburg Süd will come closer together into more customer-centric teams, while continuing to meet customers as two separate brands with a differentiated service model,” it said.
According to analysts, these developments seem to indicate that the Damco freight forwarding business is not only being dissolved but that the business is being fundamentally changed. The air freight forwarding and LCL business will only be offered to customers of the wider shipping business which is being renamed Ocean & Logistics.
Moreover, the restructuring will affect “between 26,000 and 27,000 employees out of Maersk’s total headcount of 80,000,” according to press reports quoting a “Maersk spokeswoman.” Maersk still has to confirm this officially, however.
These changes indicate that Maersk is sharpening its focus and withdrawing from freight forwarding at least, and reducing staff costs by a third.
Photo By Bahnfrend – Own work
