|Bid||0.00 x 0|
|Ask||8,182.00 x 0|
|Day's Range||7,954.00 - 8,182.00|
|52 Week Range||4,976.00 - 10,555.00|
|Beta (5Y Monthly)||1.09|
|PE Ratio (TTM)||215.62|
|Forward Dividend & Yield||150.00 (1.87%)|
|Ex-Dividend Date||Mar 24, 2020|
|1y Target Est||1,548.30|
In connection with the announced share buy-back program in A.P. Møller - Mærsk A/S, A.P. Møller Holding A/S continuously sells shares pro rata and the market is to be informed.
A P MOLLER-MAER/ADR (OTCMKTS: AMKBY) has reached an agreement with Bridgepoint Development Capital to acquire the Swedish customs broker, KGH Customs Services, for an estimated $279 million.The liner carrier said the acquisition of the Gothenberg, Sweden-based company, which is subject to regulatory approval, will expand its customs services offerings to European shippers."We achieve all this in one go instead of having to build our expertise through multiple acquisitions," said Vincent Clerc, CEO of ocean and logistics at A.P. Moller-Maersk, in a statement released on Monday, July 6."KGH has a strategy focused on digital solutions and technology as an enabler for a more seamless customer experience, which also corresponds with Maersk's own digital transformation journey," Maersk added in a press release.According to Maersk, KGH has in the past years achieved double-digit annual growth resulting in revenue of about $95.5 million, recurring earnings before interest, taxes, depreciation and amortization (EBITDA) of about $17.2 million, and an EBITDA margin of about 18%. KGH has 775 employees and a yearly business of 1.98 million import clearances.With the acquisition, Maersk estimates that it will have 960 customs services employees across offices in 22 European countries. This will result in an estimated 2.38 million import customs clearances and a combined turnover of $109.4 million.Maersk has expanded its logistics and customs brokerage service offerings worldwide in recent years through acquisition.In February 2019, the company acquired Vandegrift Inc., a Clark, New Jersey-based customs broker, increasing its North American customs services staff from 80 to 250 people and added 25 more licensed customs brokers.On April 1, Maersk completed a 5 million acquisition of U.S. warehouse and distribution firm Performance Team, which more than doubled its warehouses in the North American market to 46.Related Articles:Logistics services providers become survivalistsDamco meets pandemic logistics challenge head-onMaersk completes 5 million Performance Team acquisitionClick for more FreightWaves/American Shipper articles by Chris Gillis.See more from Benzinga * Volumes Remain Elevated For A Holiday – FreightWaves NOW * Trucking Freight Futures Market Summary: Week Ending 07-02-2020 * Kansas City Southern Appoints New Leaders, Opines On USMCA(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The debt-laden container shipping industry is sailing in treacherous waters. Lockdowns and trade tensions could result in the biggest contraction in seaborne trade on record. The resulting imbalance between capacity and cargo sparked a price war and widespread losses.
A.P. Moller-Maersk, the world's top container shipping firm, said on Wednesday that market demand was developing "more favourable than originally expected" in the second quarter, sending its shares up 7%. The coronavirus crisis hit the container shipping trade as supply chains were upended and businesses and factory activity in China and later across the world was disrupted. Maersk will publish full second-quarter results on Aug 19.
A.P. Moller Marsk A/S (OTC: AMKBY) has committed its entire fleet of company-owned vessels to assist global research on weather patterns and climate change.A.P. Møller – Maersk said 300 vessels will be equipped by the end of the year to provide data through the Voluntary Observing Ship (VOS) program. "Climate change is one of the biggest challenges facing the global community," says Maerk's Aslak Ross. (Photo: Maersk)While Maersk already has many vessels contributing to the program, the newly expanded commitment will see its entire fleet participating by the end of 2020. The recorded data helps meteorologists create more accurate weather and storm forecasts and will be used in the creation of atmosphere-ocean models that will help scientists better understand climate change. "As a global container logistics company, our vessels form a vital role in keeping supply chains moving safely and timely. Helping weather forecasting and climate science advance makes great sense to us, since both of these areas affect our operations in various ways," said Aslak Ross, Maersk's head of marine standards. Ross said while scientists have been collecting and sharing weather and ocean condition observations for more than 150 years, technological advances have significantly increased the amount of information that can be shared. A typical VOS records and transmits observations manually, with a ship crew member reading data from instruments on board the vessel or in some cases through automated weather stations (AWS). The data is then sent to meteorological services for use in weather-prediction models and to monitor conditions at sea. To obtain more data with higher precision, the first five Maersk vessels participating in the VOS program are equipped with a more advanced type of AWS, the European Common Automatic Weather Station. It automatically collects data on atmospheric pressure, air temperature and relative humidity and transmits the information hourly to designated research stations. By the end of 2020, a total of 50 such stations are planned to be operational on Maersk vessels, providing the largest fleet of AWS from a single company."If we can help create even marginal improvements to the quality of weather routing services, these will be important levers in our constant efforts to improve the safety of our crews and assets and ensure reliable arrival times for our customers' supply chains," Ross said.While more than 3,000 ships worldwide are involved in the VOS program, overall participation has declined in recent years due to a reduction in the global commercial fleet's financial and crew resources, according to Maersk. New technologies such as AWS and electronic logbooks, however, have led to an increase in the quantity and quality of observations from each vessel. As the world's largest container ship fleet operator, Maersk will be making a significant contribution to improving the amount and quality of data available to the study. "Climate change is one of the biggest challenges facing the global community, impacting our business as well as the societies and customers we serve and partner with in enabling trade," Ross said. "We have an ambitious strategy to decarbonize our fleet of vessels by 2050 and as we execute this plan, we are proud to have our vessels and crews help researchers in gaining a better understanding of this key global challenge." In the United States, Maersk has worked actively with the VOS sponsor, the U.S. National Oceanic and Atmospheric Administration (NOAA), on a variety of environmental programs. Lee Kindberg, Maersk North America's director of environment and sustainability, said, "We are pleased to be able to expand our long-term work with NOAA to help gather high-quality data to improve understanding of global weather and climate conditions. This complements our work here in the U.S. with NOAA on air quality, vessel emissions and protecting endangered whales."Click for more FreightWaves articles by Kim Link-Wills.Photo: MaerskSee more from Benzinga * FMC Eases Some Publication Requirements For Ocean Container Carriers * CN Benefits From British Columbia's Growing Propane Exports * Guns, Drugs, And Drivers: Midday Market Update (With Video)(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The $1 trillion container shipping industry is in a slowdown. Many are also cutting down the number of voyages and providing short-term storage for clients as the industry, which includes heavyweights like Maersk, MSC and Hapag-Lloyd, faces its biggest downturn since the 2008 financial crisis. Civil unrest in the United States has compounded their problems by further clouding the prospect for a recovery in the world's biggest retail sales market.
The coronavirus lockdown has accelerated a digitalisation drive in a global shipping and logistics sector that still routinely delivers many documents by bike messenger in some countries, according to industry leaders. Ports operator DP World said on Thursday it would join shipping company Maersk and other peers in a blockchain platform aimed at limiting the sector's costly paper trail. "The situation around the coronavirus is a very good catalyst for making sure everyone in the supply chain can communicate with each other digitally," Mike Bhaskaran, DP World's chief operating officer for logistics and technology, told Reuters.
Container volumes will drop sharply in the second quarter but the industry is in better position to manage the coronavirus crisis than previous downturns, according to Soren Skou, chief executive officer of A.P. Moller-Maersk (OTC: AMKBY), the owner of the world's largest container line.On Tuesday, APM reported net income of $209 million for the first quarter of 2020 compared to a net loss of $656 million in the same period last year, with ocean shipping revenues up 3% despite coronavirus fallout."These are indeed extraordinary times for us," acknowledged Skou on the conference call with analysts. "We are now in the middle of a pandemic storm, but we believe we are well placed to weather this storm."Volume and capacity outlookMaersk Line predicts second-quarter container volumes will fall 20-25% year-on-year.Skou disclosed that April volumes were down just under 20%. Asked about the implied steeper declines for May and June, he noted that the pandemic has mainly affected the east-west trades (Asia to Europe and Asia to North America) so far, but the plunge in oil pricing creates uncertainty and the potential for declines in the north-south trades (Latin America, Africa).Maersk Line "blanked" (canceled) more than 90 sailings in the first quarter to reduce variable costs, bringing deployed capacity down 3.5% year-on-year. It's loaded volumes fell from 3.15 million forty-foot equivalent units (FEU) in the first quarter of 2019 to 3.048 million FEU in the most recent period, a decline of 3.2%.Maersk expects close to 140 sailings to be blanked in the second quarter, implying a capacity reduction in the high single-digits. "We will take further initiatives on capacity depending on demand," said Skou.On an industry-wide basis, Maersk estimated that global demand fell 4.7% year-on-year in the first quarter, with east-west trades down 5.7%, north-south trades down 0.6% and intraregional demand down 5.5%.On the supply side, Maersk estimated that the global fleet stood at 23.3 million twenty-foot equivalent units (TEU), up 3.6% year-on-year. But of that, 9.4% of the fleet (2.2 million TEU) was idle by the end of the quarter.Industry ownership consolidation and operating alliance have led to "greater agility in terms of adjusting supply to demand," affirmed the Maersk CEO."The most important things to understand is that the three large east-west alliances [2M, Ocean Alliance, THE Alliance] make it much simpler to adjust capacity in an agile way" versus earlier crisis periods, he explained."In our case [Maersk is in the 2M Alliance with MSC], if we operate 13-14 service strings per week in Asia-North Europe and Asia-Med, it is obviously a lot easier to take one out as opposed to a small VSA [vessel sharing agreement] that operates one or two strings."Another factor is that the industry has quite a low order book today and it's geared towards a low-growth scenario. That was not the case in 2008-09 when the order book was massive and a lot of carriers had big blocks of capacity coming online that they had to fill," said Skou.Freight-rate outlookMaersk reported first-quarter rates of $1,999 per FEU, up 5.7% year-on-year. In general, global freight rates are up in the second quarter. "We actually had a reasonable April from a profitability perspective," said Skou, adding "so far, so good."Rates are being propped up despite plunging demand because carriers have reduced capacity via blank sailings."We are certainly not going to give any predictions on freight rates but what I would say is that there are a number of competitive dynamics that are different than what we have seen before, certainly [when compared to] the global financial crisis but also to 2011 and 2015 when the carrier side had quite brutal price wars."In addition to the liners' improved ability to lower capacity as a result of consolidation and alliances, Skou pointed to digital products that improve pricing visibility. "With products like Maersk Spot, we are pricing based on utilization curves with upward sloping yield curves, which ensures we get better yields as a result – very similar to what airlines have successfully done for years."Digital products and transparency on freight rates mean we are less reliant on customer feedback and relying more on our utilization when we are setting prices," he continued.Across the industry, there is also less interest in pursuing volume at the expense of pricing, for various reasons. "At Maersk, we are not pursuing market share," emphasized Skou. "We are planning to grow in line with or slightly below the market and we will do what we can to protect profitability."It seems to me that many other carriers are doing the same. One of the reasons could be that there are generally quite weak balance sheets in the sector," he said, adding that the implementation of accounting standards "has really highlighted the operational leverage of many companies in the sector have." Click for more FreightWaves/American Shipper articles by Greg Miller Photo credit: Flickr/Kees TornSee more from Benzinga * US Law Trumps Washington State's Crude-By-Rail Restrictions, Federal Agency Finds * Former Trucking Company Co-Owner Gets 15 Months For Wire Fraud * Emirates SkyCargo's Annual Revenue Falls 14%(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shipping group A.P. Moller-Maersk warned of a sharp drop in global container volumes due to the coronavirus pandemic, with weaker retail sales and depressed car production dampening demand. The crisis has thrown the container shipping trade off balance as supply chains have been upended and businesses and factory activity in China and later across the world was disrupted. Maersk, which also reported a 23% rise in first-quarter core profits on Wednesday, now expects global container demand to contract this year, after previously forecasting growth of between 1% and 3%.
Cargo volume at the Port of Los Angeles is down 15.5% so far this year as the novel coronavirus upends economies around the globe, Gene Seroka, executive director of the busiest U.S. seaport, said on a webcast on Wednesday. Consumer demand for non-essential items has fallen off the cliff in the United States - where the pandemic is blamed for more than 71,000 deaths, swelling unemployment and bankruptcies of Main Street brands like preppy clothing seller J. Crew. Top shipping lines like Maersk have responded by reducing port calls, contributing to job losses across the transportation industry.
A last-minute court plea – infused with rhetoric about coronavirus fallout – has failed to derail Maersk's plan to switch from the GCT New York terminal on Staten Island to the APM Terminals (APMT) facility in Elizabeth, New Jersey.A Maersk spokesman confirmed to FreightWaves that a New York district court judge has "ruled against GCT's request for a restraining order regarding Maersk's announced transfer of three services" to APMT Elizabeth. He said the carrier is making the move to "achieve better operational efficiency" after the recent $200 million upgrade to the APMT facility.Maersk Line informed GCT New York on April 10 that it would pull out as of May 1. APMT, Maersk Line and Hamburg Sud are owned by Copenhagen-listed AP Moller-Maersk (APM).The three affected services are: a Caribbean-U.S. East Coast (USEC) service operated by Maersk; an East Coast South America-USEC service operated by Hamburg Sud and Hapag-Lloyd; and a West Coast South America-USEC service operated by Hamburg Sud and Hapag-Lloyd (Hapag-Lloyd had no service contract with GCT New York).Maersk initially offered to pay GCT a settlement of $5.5 million, including an early termination fee of $2.1 million and additional consideration of $3.4 million. GCT fought back – and lost, at least in terms of securing the temporary restraining order (TRO).Asked whether talks have resumed on the initial settlement offer, the Maersk spokesman replied, "We generally do not comment on the existence or substance of settlement negotiations."GCT allegationsGCT sought an emergency TRO through court filings on April 20, arguing that the service contract signed by Maersk couldn't be terminated until December 31, 2021, and only then with six months' notice.GCT alleged that "the timing couldn't be worse ... in the middle of an unprecedented and crippling global pandemic"; that Maersk's decision would "reverberate through the Staten Island economy and have adverse tax-revenue effects for the city and state of New York"; that the carrier's "reprehensible conduct [its early contract termination] is magnified by the fact that Maersk is essentially stealing business from GCT to give to its own corporate affiliate, APMT;" and that as a result of Maersk's decision, the Staten Island terminal could "cease to be a going concern" and 100% of Staten Island's longshoreman jobs could be "at risk."Maersk's rebuttal in courtMaersk alleged in court documents filed on April 22 that "GCT feigns shock and surprise that Maersk would transfer its container business to a competitor terminal in the port operated by Maersk's corporate affiliate, APM," because "it unquestionably knew Maersk planned to transfer the business to APMT when space became available."Maersk pointed to written correspondence showing that when the 2018 contact amendment was negotiated, Maersk specifically told GCT that "our concern is that by the end of 2021, our sister company [APMT] may have had space available and we will be unable to move ... [so] we want to build a flexible tool that works for both of us." Maersk said the early termination clause was negotiated to address that concern.Maersk's court filing confirmed that the coronavirus did indeed play a role in the company's decision to make an earlier-than-expected switch to APM Elizabeth."Ultimately, space became available at APMT sooner than Maersk anticipated. Given the uncertain economic environment caused by COVID-19, Maersk made the business decision to terminate the [contract] early," said the carrier.Maersk alleged in the court filing that "GCT has exaggerated the impact that an early termination of the [contract] will have on GCT's business, the port and the surrounding community."The carrier disputed GCT's claims on loss of longshoremen jobs, noting that GCT also operates a terminal in Bayonne, New Jersey, and could shift some ship calls to Staten Island, and that port workers who lost work in Staten Island would be eligible based on seniority for work at other terminals in the Port Authority of New York/New Jersey complex (PANYNJ). The service switch by Maersk to APMT Elizabeth does not, in itself, lower volumes through PANYNJ properties.The bigger pictureThe coronavirus outbreak has prompted a vast reduction in container line services across the globe. The number of vessels bringing cargo from Asia to the U.S. could decline by 20% or more in May, June and subsequent months.Fewer services may prompt carriers to change which terminals they call at and rationalize the number of terminals they use. This could prompt terminals on the losing end to seek protection from local courts, with different outcomes possible in different jurisdictions.Maersk asserted that its decision to leave Staten Island early "was a legitimate business decision" and pointed out that the U.S. Second Circuit Court of Appeals has previously ruled that a contract "may be breached for legitimate business reasons."Maersk disputed the contention that GCT – which operates four terminals and is owned by three "multi-billion-dollar" institutional investors – would be driven to bankruptcy by the loss of the Maersk services in Staten Island. And even if that were true, emphasized the carrier, GCT would "have itself to blame for a failed business model."In general, the container giant argued that it is bad public policy to protect parties "from bad contracts or bad business models." The New York judge appears to have agreed. Click for more FreightWaves/American Shipper articles by Greg MillerSee more from Benzinga * Southwest Hunkers Down For More financial Losses * Canadian National Anticipates A Rough May * Today's Pickup: Day & Ross To Test Hydrogen-Injection Engine Technology(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Singapore's PSA International and Indian container freight operators have warned the Indian government that its order to waive container storage charges during the coronavirus lockdown could lead to port congestion, letters seen by Reuters showed. India's Ministry of Shipping asked ports to allow free storage of containers as part of relief measures to ease pressure on companies hit by logistics restrictions because of India's nationwide lockdown. PSA's local unit in a letter to the government on April 24 said importers might not remove their containers from ports due to free storage, adding India's "high-risk strategy" could clog terminals and hit the supply chain, instead of helping it.
Global carriers are heavily curtailing ocean services as the coronavirus decimates import demand. Just as it makes sense to rationalize vessel deployment, it also makes sense to rationalize terminal usage. There will inevitably be terminal winners and losers in the months ahead.The legal fight in Staten Island, New York, could be a sign of things to come. The coronavirus is front and center, at least in terms of rhetoric.Restraining order soughtGlobal Container Terminals (GCT), which operates the facility on the island, is seeking an emergency restraining order to prevent A.P. Moller Maersk (APM)-owned Maersk Line and Hamburg Sud from pulling out and switching over to the nearby Port Elizabeth, New Jersey, site operated by APM subsidiary APM Terminals (APMT).Maersk said in a letter on April 10 that Maersk Line and Hamburg Sud vessels would cease calls at GCT New York by May 1. It said it was willing to pay a settlement of $5.5 million, including an early termination fee of $2.1 million and additional consideration of $3.4 million.GCT USA President John Atkins claimed in a court filing Monday that its agreement with Maersk ran through Dec. 31, 2022, and could only be terminated early on Dec. 31, 2021, and only if six months' notice is given.Atkins said the termination notice was sent without cause 20 months before it was allowed on "the Good Friday public holiday ... in the midst of the ongoing COVID-19 emergency in the metropolitan area ... [with] a mere 20 days' prior notice in the middle of an unprecedented and crippling global pandemic.""The timing could not be worse with social distancing and stay-at-home directives in place and attendant concerns about the spread of infections making an emergency management response ... extremely difficult," he said.He alleged that Maersk and Hamburg Sud are attempting to move to Port Elizabeth "for the financial benefit of their sister company, APMT, which is a direct competitor of GCT," and that Maersk's "reprehensible conduct [its early contract termination] is magnified by the fact that Maersk is essentially stealing business from GCT to give to its own corporate affiliate, APMT."He said the services run by Maersk and Hamburg Sud through GCT's Staten Island site account for 60% of the terminal's ocean container business and 46% of all box throughput including local barge business. Maersk's departure "will have immediate and catastrophic effects on the business and financial well-being of GCT and its employees, which are exacerbated by the timing of the purported termination."Atkins maintained that GCT is one of the top employees on Staten Island and the early loss of Maersk's business would put 100% of Staten Island longshoreman jobs "at risk as it jeopardizes the viability of GCT's business."GCT alleged in its complaint that the Maersk action could cause the Staten Island terminal to "cease to be a going concern" and would "reverberate through the Staten Island economy and have adverse tax-revenue effects for the city and state of New York."Maersk's responseAsked by FreightWaves for a response to the allegations in the court filing, a Maersk spokesman sent a written statement. "Maersk can confirm that it is currently involved in an ongoing contract dispute with Global Container Terminals," the statement said. "We can also confirm that Global Container Terminals alleged in its lawsuit that if Maersk ceases to call [at] Global Container Terminals that Global Container Terminals will cease to be a going concern. "We believe claims that Global Container Terminals, which is owned by multi-billion-dollar investment funds, will go out of business as a result of this contract dispute to be intentionally inflated to create unnecessary fear during this time of uncertainty and the product of a litigation strategy to distract from the contractual rights and remedies that Global Container Terminals previously negotiated and now regrets," said Maersk.Vancouver-based GCT operates four terminals, two in British Columbia and two in the U.S. (in Staten Island and Bayonne, New Jersey). As noted by Maersk, GCT does indeed have some big-pocketed owners. It is owned by three very large institutional investors: the Ontario Teachers' Pension Fund owns 37.5%, IMF Investors 37.5% and British Columbia Investment Management 25%. These three entities have aggregate funds under management totaling $534 billion — the equivalent to the gross domestic product of Egypt.In its termination letter, Maersk said its $2.1 million termination fee was "a generous estimate given the uncertainty related to COVID-19," on top of which it was offering the "additional consideration" of $3.4 million to "satisfy all obligations."The termination fee calculation relates to volume credits that would have been issued. Atkins countered that "this termination fee is not intended as a proxy for damages that GCT may suffer as a result of any breach by Maersk resulting in premature termination; instead, it is to refund the volume discounts which were solely provided to Maersk in exchange for extending the term of the agreement to Dec. 31, 2022. ... If not for these promises and commitments from Maersk, GCT would not have reciprocally agreed to the volume discount program and favorable contract rates set forth in the  amendment."FreightWaves asked the Maersk spokesman whether the decision to switch calls from GCT New York to Port Elizabeth APMT would have occurred if there had not been a coronavirus outbreak.Maersk replied, "We cannot and will not speculate as to what may have happened under different circumstances, but this decision was not made lightly. It is regrettable that GCT has violated its confidentiality obligations by making settlement discussions publicly available, but in the current environment in which other transportation providers are seeking force majeure and other protections, Maersk has continued to deliver a reliable product and business continuity to its customers and this move will only reinforce Maersk's ability to continue to keep the supply chain moving and essential goods moving to customers."A court hearing on the emergency restraining order — to be conducted, of course, by telephone — is scheduled for Friday. Click for more FreightWaves/American Shipper articles by Greg MillerPhoto APM TerminalsSee more from Benzinga * Freight Futures Daily Curve: 4/22 * Cummins Testing Cylinder Skipping To Reduce NOx Emissions * Ontario Volumes Are Supporting The West Coast – FreightWaves NOW(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This is the age of wild rides that are transforming the personal transportation sector into something worth more than ever, and six visionaries are driving innovation, each in their very own industry
The online services of Mediterranean Shipping Company (MSC), the second largest container line in the world, are now back online after an extended outage.The company's website, msc.com, and its online booking platform, myMSC.com, went offline last Thursday night. In the interim, customers were able to continue bookings by telephone through agents, as well as through third-party online platforms of companies including INTTRA, GT Nexus and CargoSmart.The outage was restricted to MSC's headquarters in Geneva, Switzerland, and did not affect any of the company's other departments, terminals, depots and facilities elsewhere in the world."MSC confirmed that a recent network outage .... has now been resolved and all internal systems are fully functional," the company said on Wednesday morning.When the outage began, there were multiple reports that a cyberattack was to blame. In response to queries from FreightWaves, an MSC spokesperson responded last Friday that the company "did not rule out the possibility of malware."FreightWaves sent multiple queries to MSC on Tuesday seeking confirmation that the outage was not the result of ransomware; MSC did not respond.If it was a cyberattack, it would mark the third time a major container line has been hit in recent years.Maersk was severely impacted by the so-called NotPetya attack in June 2017. The ransomware was believed to have targeted Ukrainian businesses; Maersk was caught in the crossfire, with disruptions causing a 20% drop in volume. Maersk said in its 2017 annual report that the attack cost the company $250 million to $300 million.In July 2018, North and South American operations of Chinese carrier COSCO were hit by a cyberattack that disrupted communications systems for a week. Operations quickly recovered and disruptions were minimal.Lars Jensen, CEO of Copenhagen-based SeaIntelligence Consulting, said in an online post, "Within less than three years, we have now seen the three largest container lines impacted by cyber incidents. In every case, it is clear that one of the most important mitigating factors is the people — the ability to keep the business running without the use of the digital tools for an interim period."He continued, "A consequence of the pandemic will be the sharp acceleration in the use of digital tools, for a wide range of good reasons. This will also lead to a stronger dependence on the functioning of these tools."Fear of cyberattacks should not hold back this development," Jensen continued. "But everyone would need to consider carefully what their backup plans are and how to retain the practical skills with their people to manage a crisis situation, and not simply see this as an opportunity to reduce the staff, believing the tools to be infallible. People are indispensable in a digital world." Click for more FreightWaves/American Shipper articles by Greg MillerPhoto credit: Flickr/Tom DriggersSee more from Benzinga * US Airlines Accept Government's Workforce Aid * Petition Calls For More Targeted Relief For Truck Leases, Insurance Costs * P.A.M. Transportation Looks Outside Of Network To Replace Lost Freight(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CMA CGM said Wednesday that no crew members on board the Marco Polo are infected with the coronavirus.The French carrier said earlier in the week that one crew member was sick and had been isolated until he could be tested for COVID-19. The container ship was off the coast of Spain at the time."There is no COVID-19 case on the CMA CGM Marco Polo, confirmed by sanitation authorities," CMA CGM told American Shipper on Wednesday.CMA CGM said it had taken all necessary precautions to ensure the health and safety of its employees on land and at sea."Since the beginning of the COVID-19 crisis, there has been no COVID-19 case in the entire CMA CGM fleet," it said.CMA CGM has just over 500 vessels with a combined capacity of about 2.7 million twenty-foot equivalent units.Only one positive case of COVID-19 on board a container ship has been confirmed.A.P. Møller-Mærsk said Monday that crew members from the Gjertrud Maersk had been hospitalized in Ningbo, China. One crew member tested positive for COVID-19. Four others were classified as "asymptomatic infected individuals."Photo: Flickr/Angelo VlassenroodSee more from Benzinga * Ocean Shipping Services Continue To Deteriorate * Airlines Feel Pressure To Maintain Minimum Level Of Domestic Service * Industry Groups Urge States To Cut Truckers Slack At Travel Plazas(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Global container shipping giant A.P. Moller-Maersk (OTCMKTS: AMKBY) said April 1 that it has completed its $545 million acquisition of U.S. warehouse and distribution firm Performance Team.With the acquisition, Maersk's number of North American warehouses increases to 46 and will allow the company to expand its regional logistics services for ocean container shippers. Prior to purchasing California-based Performance Team, Maersk Warehousing and Distribution operated 22 warehouses in the U.S. and Canada.American Shipper first reported the news of the acquisition on February 19.Maersk's warehouse facilities provide logistics services, transload, consolidation, e-commerce fulfillment, inland drayage, facility management, yard management and value-added services.In recent years, Performance Team has established itself as a leading provider of e-commerce, retail, wholesale, omnichannel distribution and transportation services. It has 24 distribution centers in the Los Angeles area, New York and Miami, as well as in Dallas/Fort Worth; Louisville, Kentucky; Shreveport, Louisiana; and Edgerton, Kansas. [Source: A.P. Moller-Maersk]"Our customers now have the opportunity to add Performance Team's omnichannel fulfillment services into their supply chain to create a hold and flow model customized to their specific needs," said Narin Phol, Maersk's regional managing director for North America, in a statement. "We believe our logistics strategy is well-positioned to support their end-to-end supply chain solution needs."Maersk estimates the warehousing and distribution sector to be valued at $200 billion globally and $50 billion in North America."There is a significant growth opportunity for third-party warehousing and distribution players as only a small part of the warehousing and distribution sector in North America is currently outsourced and e-commerce is growing 12% annually," Maersk said. "Increasingly, retail brands are looking to continue to expand ecommerce sales to reach new customers to complement their store sales.""We're excited to win more customers together and offer products based on our combined strengths," said Craig Kaplan, who will remain CEO of Performance Team post-acquisition.El Segundo, California-based Performance Team, a 33-year old company, has more than 5,000 customers and operates in 8.6 million square feet of warehouse and distribution space throughout the U.S.See more from Benzinga * Coronavirus Weaponizes Debate Over California's AB5 * Today's Pickup: Drivers And Delivery Workers Demand Hazard Pay And Safety Equipment * The Downside To Stocking Up For Months - FreightWaves NOW(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CMA CGM has confirmed a crew member on board the Marco Polo off the coast of Spain is being tested for the coronavirus."One crew member of the CMA CGM Marco Polo has taken ill on board. All necessary precautions have been taken to isolate the crew member until medical assistance and a test can be undertaken. No other crew are showing symptoms," CMA CGM said in an email to American Shipper.CMA CGM did not say whether other crew members were being quarantined."In accordance with the current standard operating procedures, a total disinfection on board has been undertaken," CMA CGM said.The French ocean carrier also did not verify reports that Spanish authorities had prohibited the Marco Polo from docking at the Port of Algeciras. Port authorities did not respond to a request for information.The Marco Polo is the second reported container ship with suspected cases of COVID-19 on board. A.P. Møller-Mærsk confirmed Monday that seven crew members had been evacuated from the Gjertrud Maersk and hospitalized in Ningbo, China. One of those crew members tested positive for the coronavirus, and Maersk said four were "asymptomatic infected individuals." FreightWaves Senior Editor Greg Miller reported recently that if seafarers aboard commercial oceangoing cargo ships started to become infected with the coronavirus, there was major trouble ahead for the global transport network.The Marco Polo was one of five CMA CGM vessels anchored in the Bay of Marseilles in front of La Major Cathedral in late June 2018 to sound their horns in tribute during the funeral of the company's founding president, Jacques R. Saadé.The vessel was one of three 16,000-TEU (twenty-foot equivalent) ships built in South Korea by Daewoo Shipbuilding & Marine Engineering and delivered to CMA CGM in 2012 and 2013.Photo: Flickr/GrahamAndDairneSee more from Benzinga * Coronavirus Spawns Layoffs Across Freight, Logistics And Associated Industries In Texas * UPS Pilots Ratify Two-Year Contract Extension * Trump Completes Rollback Of Vehicle Fuel Efficiency Standards(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Gjertrud Maersk has become what is believed to be the first container ship in the world reported to carry the coronavirus.Seven crew members were evacuated from the vessel in Ningbo, China, on Thursday."One of the seafarers has been diagnosed with COVID-19 and four seafarers are asymptomatic infected individuals. The other two tested negative. The hospitalized seafarers are all in stable condition," Christian Kjærgaard-Winther, Maersk senior press officer in Denmark, told American Shipper on Monday."We can confirm that during the past week, several seafarers on board the container vessel Gjertrud Maersk were feeling unwell," Kjærgaard-Winther said. "As per our established protocols, the seafarers were isolated on the vessel when symptoms appeared and we are providing medical treatment based on input from our medical advisers."He did not respond to a request for the number of crew members remaining on board the Gjertrud who may be under quarantine.The Danish-flagged Gjertrud has a capacity of 9,074 twenty-foot equivalent units. Kjærgaard-Winther said the container ship was being phased into the Maersk network and was idle in Ningbo."Extra precaution measures will be taken for crew replacement and sanitation will be implemented," he said.Maersk said on March 17 that "with the continued spread of the COVID-19 pandemic and the extraordinarily fast-paced closing of borders and cancellations of airline services," it was immediately suspending all crew changes on its container ships until April 14 in order to "keep our crew safe while maintaining operations as normal as possible."Photo: ShutterstockSee more from Benzinga * Freight Futures Daily Curve: 3/30 * Labor Actions Taken In New York Against Amazon, Instacart * Continuous Planning For Airfreight's 'Black Swan' Events(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A.P. Møller-Mærsk (OTCMKTS:AMKBY) has confirmed that crew members have been evacuated from the Gjertrud Maersk and hospitalized in Ningbo, China, with suspected cases of the coronavirus.Christian Kjærgaard-Winther, Maersk senior press officer in Denmark, said in an email to American Shipper that "a number of our seafarers" on the container ship were suspected of having COVID-19 on Wednesday and were evacuated from the ship on Thursday and taken ashore for medical care.If confirmed, these would be the first reported cases of the coronavirus on board a container ship. Maersk is the world's largest ocean shipping company. "We are still awaiting the official report from authorities as well as the hospital," Kjærgaard-Winther said. "As per our established protocols, the seafarers were isolated on the vessel when symptoms appeared and we are providing medical treatment based on input from our medical advisers."He said Maersk was working with government and port authorities in Ningbo.The Danish-flagged Gjertrud has a capacity of 9,074 twenty-foot equivalent units."The vessel was awaiting phasing into our network and currently idle at the quayside in Ningbo, China," Kjærgaard-Winther said. "Extra precaution measures will be taken for crew replacement and sanitations will be implemented."The Gjertrud reportedly arrived at Ningbo from Hong Kong. In a coronavirus update posted Thursday, Vincent Clerc, CEO of Maersk Ocean and Logistics, said measures taken by governments and companies to mitigate the crisis will result in an economic slowdown and that conversations with customers "confirm our expectation of lower volume demand in the coming weeks."Clerc said, "We are actively preparing our network to match a reduced demand level. We believe that it is our responsibility to rightsize in order to protect our cost position, both to be able to weather these storms but importantly also to ensure that you have a partner who cares for the integrity of your supply chain as we look to lifting the world out of this crisis."Image: A.P. Møller-MærskSee more from Benzinga * Can America Pick-Up? (With Video) * Crossroads For Dry Bulk Shipping: Recovery Or Disaster? * CDC Tells Truckers Going Through NY No Need To Self-Quarantine(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Huboo, the U.K. startup that operates a multi-channel fulfilment service for e-commerce businesses of varying sizes, has picked up an undisclosed amount of investment from Maersk Growth, the venture arm of Danish container logistics giant A.P. Moller - Maersk. The funding is described as a bridge round designed to see Huboo through to a future Series A. It follows the disclosure of £1 million in seed backing in September 2019 led by London venture capital firm Episode 1, alongside a number of unnamed private individual investors. The startup is also backed by True Capital and Ada Ventures.
The Digital Container Shipping Association (DCSA) on Tuesday published a guide to help ocean carriers thwart cyberattacks.The Amsterdam-based nonprofit said the guide is designed to facilitate vessel readiness to comply with the International Maritime Organization (IMO) Resolution MSC.428(98) on Maritime Cyber Risk Management in Safety Management Systems. The DCSA said the guide gives shipowners the tools they need to mitigate the risk of cyberattack or contain damage and recover from an attack if one occurs.DCSA CEO Thomas Bagge said cyber risk management is a must for the container shipping industry."Due to the global economic dependence on shipping and the complex interconnectedness of shipping logistics, cyberattacks such as malware, denial of service and system hacks can not only disrupt one carrier's revenue stream, they can have a significant impact on the global economy," Bagge said.The IMO resolution, adopted in June 2017, states container shipping lines will "ensure that cyber risks are appropriately addressed in safety management systems" by Jan. 1, 2021. To meet that objective, shipping lines should assess risks to ships, personnel and the environment, establish safeguards and continuously improve the safety management skills of personnel on shore and aboard ships, according to the resolution.Itai Sela, CEO of the security firm Naval Dome, said at the Singapore Maritime Technology Conference 2019 that the maritime industry should be on red alert but "is just not prepared."Sela said at that conference last April that the "maritime sector is being targeted by highly motivated cybercriminals."COSCO was the victim of a cyberattack in July 2018 and Maersk was hit hard in August 2017. That cyberattack is reported to have cost Maersk 0 million.DCSA said it will conduct webinars in March to provide an overview of the cybersecurity implementation guide and collect feedback from industry stakeholders.Major ocean carriers founded DCSA to digitize and standardize the container shipping industry. Its open source standards are developed based on input from member carriers, industry stakeholders and technology experts from other industries. DCSA member carriers are MSC, Maersk, CMA CGM, Hapag-Lloyd, ONE, Evergreen, Yang Ming, HMM and ZIM.DCSA launched its efforts last year after the U.S. Federal Maritime Commission gave its permission for the carriers to collaborate.Image Sourced from PixabaySee more from Benzinga * Commentary: Walking The Tightrope Of Antitrust Immunity * Coronavirus Will Test Supply Chain Partnerships * COVID-19 Exposing Funding Shortfalls At US Ports(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
LONDON/LOS ANGELES, March 6 (Reuters) - U.S. retailers face an estimated $700 million sales hit from the coronavirus and some shipping lines are sending vessels to retrieve empty cargo containers from Los Angeles to prevent further supply disruptions. The extended shutdown of factories in China caused by the virus, travel restrictions on workers and canceled sailings by shipping lines have thrown off the movement of containers, resulting in a surplus at the Port of Los Angeles and a shortage in Germany. U.S. retailers' cumulative losses from coronavirus-related production and transportation shortages could hit $700 million between March 9 and April 20, said Patrick Hasani, chief of staff for digital freight forwarder Zencargo.
A high-level business conference due to take place in Ivory Coast next week has been postponed, signalling heightened concern over the spread of coronavirus in Africa, which has registered relatively few cases. The Africa CEO Forum had some 1,800 participants last year, and this year's edition included appearances by the presidents of Ivory Coast and Senegal as well as Nigeria's vice-president. No coronavirus cases have been confirmed in Ivory Coast, which is French-speaking West Africa's largest economy.