Port efficiency remains a key factor for liners in deciding volumes heading to hubs in Busan, Hong Kong, Singapore or Tanjung Pelepas in Malaysia according to Maersk Lines.
About 55% of Maersk's services in Asia have risen 10% year-on-year.
Maersk Line’s Asia-Pacific division has announced their strategy to choose Asian container hubs with trans-shipment cargo volumes that will be routed through hubs that offer the best cost solutions. The company has indicated its intention to have the best value proposition from these shipping hubs.
Efficiency of operations, productivity levels, berth-on-arrival services and lower cost offerings are a major priority.
Maersk has taken advantage of expanded capacity at the Port of Singapore. The company has investments of more than $12 billion in the country, according to Port Technology.
Interim report 2017 shows growth
In their Q1 2017 interim report revenue increased by 5% for the first time since 2014 while the container market showed signs of improve as well. Revenue growth was spurred by revenue increases of 10% in Maersk Line (or $ 519 million) and 33% in Maersk Oil (or $343 million).
Transported volumes increased by 10% because of improved demand, but the liner’s market share also increased.
Maersk Line also reported a loss of US$66 million, however market fundamentals improved in Q1 and demand outgrew nominal supply for the second consecutivequarter. Freight rates increased by 4.4%, mainly on East-West trades and especially from Asia to Europe while North-South trade freight rates were below that of 2016.
The container shipping giant plans to grow the Transport & Logistics division by developing and introducing new digital products and services, for example digital freight forward platform Twill.
Its container liner is collaborating with IBM to develop block-chain solutions that securely digitise supply chain documentation.
