Maersk plans to compete with parcel delivery companies

Maersk, the world’s largest container shipping company, plans to compete directly with parcel delivery companies such as UPS, FedEx and DHL as it expands its focus on transport and logistics.

“We’re building this company that is a global integrated container business, a company very similar to UPS and FedEx,” said Maersk CEO Soren Skou, adding that he hoped these companies would eventually be considered “peers of ours”.

In August 2017, the company sold its North Sea oil and gas business for $7.5 billion to French company Total. This was part of a restructuring effort that Maersk aims to complete in the next few years, so that it can offer services for every part of the supply chain.

Credit: A.P. Moller–Maersk Group

According to Maersk, the market is transforming due to the rapid global growth of e-commerce. As more businesses than ever ship to customers internationally, they are looking for speed and flexibility in their shipping options.

The impact of new technologies has also prompted Maersk to look into digital trading platforms with IBM, which could branch out into value-added services such as freight forwarding.

Despite the vast scale of Maersk’s business, the company seems eager not to be left behind in the changing market, after it missed its profit forecasts for 2017.

(Source: Reuters)