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Maersk boosts its land transport business focusing on cold chains

According to Reuters, Maersk, which is expanding in the land transport business, is planning to focus on premium services - such as cold storage and digital solutions - to avoid competing with its customers that transport goods.

Since announcing a new strategy in 2016, which included the sale of its energy business, Maersk has focused less on market share and more on profitability and cost reduction in its container and logistics business.

Now, the company wants its terminal operations and ground logistics to be a more important part of its future earnings. In 2018, maritime transport activity accounted for almost 80% of its main revenues.

Maersk mobilizes approximately one in five containers shipped across the ocean, but only deals with the land transportation from ports to storage and distribution centers for less than a quarter of its customers.

Instead of investing in cargo trucks and threatening the main business of large land transport companies - many of which are Maersk's own clients - the company's CEO, Morten Engelstoft, has indicated they are more interested in investing in cold chains.

The cold chain is responsible for keeping the perishable products refrigerated throughout their trip to keep them fresh for longer.

For example, Costa Rica, a major exporter of pineapples and bananas, could benefit from a cold chain between its banana plantations and the newly opened Maersk container terminal on the Caribbean coast, Engelstoft stated.

Maersk is developing more customized end-to-end solutions to prevent its customers from being negatively affected by their land transport businesses. Therefore, it risks taking business from some of the world's largest freight-forwarders, such as DHL Logistics, Kuehne & Nagel, DSV Panalpina, and DB Schenker.


Source: Reuters / 

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