COPENHAGEN (Dow Jones)–The world’s largest container shipping company Maersk Line is stepping up the price competition on Asia-Europe routes in an attempt to squeeze out smaller peers, writes Danish daily Morgenavisen Jyllands-Posten Wednesday.
“There’s clearly a game going on as to who gets to stay on the Asia-Europe routes in the long run,” Jyllands-Posten quotes Lars Jensen, head of SeaIntel Maritime Analysis, as saying.
“Maersk Line, MSC and an alliance of four shippers are really putting on the thumb screws. The shippers that are one level below have the choice between pest and cholera,” Jensen says.
Maersk Line, a unit of Danish business conglomerate A.P. Moller-Maersk A/S (MAERSK-B.KO), previously said it would rather protect its bottom line than engage in price wars in a weak rate environment. But now Maersk Line has opted to maintain full capacity and accept a 2011 loss in an attempt to bring about a demand-supply balance by forcing peers to remove capacity.
“Maersk considers it an investment where a low return on investment must be accepted in return for a better balance in the market,” Handelsbanken analyst Dan Togo Jensen tells Jyllands-Posten.
By Yimou Lee TAIPEI, March 7 (Reuters) – China has stepped up grey-zone warfare against Taiwan, aiming to make the areas around the democratic island “saturated” with balloons, drones and civilian boats,...
Austal USA has kicked off plans to construct a new manufacturing facility, marking a significant expansion of its shipyard capacity in Mobile, Alabama in support of U.S. Navy and Coast...
Oldendorff and Norsepower have announced an agreement to install three Norsepower Rotor Sails™ on board a modern bulk carrier to reduce its emissions. The vessel, Dietrich Oldendorff, will be equipped...
February 5, 2024
Total Views: 838
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.