EnContainer-line Maersk will restructure its freight forwarding operations as part of its long-term strategy to be more fully integrated. The airfreight and less-than-container load operations of Damco will be combined with its main container-line operations while its full-container-load NVOCC operations will be terminated by the end of 2020. Going forward Maersk will likely focus customers’ attention on its Flow platform when offering end-to-end services, outlined in Panjiva’s July 29 report.
Panjiva’s data shows that U.S. seaborne imports linked to Damco fell by 11.4% year over year in the three months to Aug. 31 while those handled by Maersk in total were unchanged. Shipping handled by Maersk that was organized by Damco slumped 53.6% lower over the same period. Maersk’s share of Damco’s business was 13.9% in the 12 months to Aug. 31, down from 32.8% in 2016. That may partly have reflected a reduction in familial connections since Maersk’s purchase of Hamburg Sud in 2018.
Source: Panjiva
Maersk’s restructuring may raise questions for CMA CGM and its 2019 acquisition of Ceva Logistics. From a practical perspective Ceva is arguably more of a stand-alone operation and CMA CGM has not been on the same restructuring path as Maersk.
Ceva has also been somewhat more successful recently compared to Damco with U.S. seaborne imports linked to the firm having climbed 24.1% year over year in the three months to Aug. 31. That outperformed CMA CGM‘s 1.7% decline.
Additionally, handling for Ceva by CMA CGM climbed 93.0% year over year, admittedly after a drop in Q3’19 through Q1’20. CMA CGM accounted for 23.6% of Ceva’s volumes in the 12 months to Aug. 31 compared to 22.0% in 2018, though the two already had a cooperation agreement with the ratio already having risen from 19.3% in 2016.
Source: Panjiva
