Maersk Announces Latest Step in Business Integration Strategy

maersk sealand
Baloncici / Shutterstock.com

Danish shipping giant Maersk has announced plans to integrate its Damco Supply Chain Services unit and Maersk Line’s Ocean Product service, which will be combined and sold as Maersk products and services.

In addition, Maersk will also combine its three regional carrier brands, MCC Transport, Sealand and Seago Line, under a single company that will go to market as “SeaLand – A Maersk Company”, as of October 1, 2018. The simplified naming structure for these brands will help strengthen brand recognition and ensure clarity of choice for customers.

Maersk says the integration of the supply chain services will see it operate as a single management team and sales force with strong product organization and a single customer experience organization. It will be headed by Vincent Clerc, Chief Commercial Officer of Maersk. Klaus Rud Sejling, CEO of Damco, will take on a new position as Head of Maersk’s Logistics and Services Products, reporting to CCO, Vincent Clerc.

The combination is the latest in Maersk’s strategy to combine its businesses into an integrated container transport and logistics company.

“Today we are taking further steps in the transformation of our business on a structural level and how we go to market, enabling us to offer more solutions to our customers in a simpler way,” commented Søren Skou, CEO of A.P. Moller – Maersk. “Our employees play a key role in making this happen and therefore we are at the same time empowering our frontline organisation who is closest to our customers.”

Damco’s freight forwarding business, which serves customers requiring air freight or multi-carrier options in ocean freight, will continue to be run as a separate and independent business under the Damco brand, which Maersk says will help it focus fully on freight forwarding. Saskia Groen In’t Woud will be the CEO of Damco Freight Forwarding, she is currently Chief Operating Officer in Damco.

“This integration marks a big milestone on Maersk’s current growth journey towards operating as one integrated company. We are in a strong position to deliver solutions that meet our customers end-to-end supply chain management needs, thereby tapping into markets covering the whole journey from producer to consumer by building on our business strengths,” Søren Skou added.