High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Denmark’s AP Moller-Maersk (MAERSK-A.KO, MAERSK-B.KO) will shift the focus of its business activity from shipping, choosing instead to concentrate on its oil, drilling rigs and ports operations, the company’s chief executive officer said, The Financial Times reports Sunday.
Nils Andersen said the company would reduce investment in Maersk Line, the company’s shipping container operation, the FT said. Maersk Line is the world’s largest operator of container ships, and holds a market share of 16%, the FT said.
“We will move away from the shipping side of things and go towards the higher profit generators and more stable businesses,” Mr. Andersen said, according to the FT. He added, “When we have taken that shift, probably more than 50% of our capital will be tied up in these three other businesses. Maersk Line will then account for 25%-30% of capital. We will have four businesses of almost equal size.”
Newspaper website: www.FT.com
(c) 2012 Dow Jones & Company
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