Maersk Line will idle as many as twenty five medium-sized container ships in 2009 as cargo volumes decline, the head of the world’s biggest ocean carrier said.
But Maersk is determined to defend its leading market share, CEO Eivind Kolding stressed.
“We would not like to see our market share go down,” Kolding said in an interview with Reuters. “When we had huge growth in the market, of 10 percent or more, it was not necessary that we kept our market share each and every year if we had other priorities.”
“But in this environment we will keep our market position,” he said. Maersk is estimated to have a world market share of around 15 percent.
Maersk laid up eight 6,500 TEUs vessels in December as traffic started to slow, particularly on the Asia-Europe trade.
Kolding said all ocean carriers likely will lose money this year and some will go out of business if freight rates don’t recover. “I have no idea who that will be, because we are all different, but it will not be Maersk.”
“Our plans assume all our competitors will be there tomorrow, but if something happens we need to be ready to move in, take a bigger share of the business if the opportunity is there.”
Container shipping will take longer than other sectors to recover after the recession because of the glut of vessels, according to Kolding.
Maersk’s container shipping unit boosted net profit to $205 million in 2008 from $106 million in 2007 boosted by cost cuts, including 4,500 layoffs.
But Maersk is determined to defend its leading market share, CEO Eivind Kolding stressed.
“We would not like to see our market share go down,” Kolding said in an interview with Reuters. “When we had huge growth in the market, of 10 percent or more, it was not necessary that we kept our market share each and every year if we had other priorities.”
“But in this environment we will keep our market position,” he said. Maersk is estimated to have a world market share of around 15 percent.
Maersk laid up eight 6,500 TEUs vessels in December as traffic started to slow, particularly on the Asia-Europe trade.
Kolding said all ocean carriers likely will lose money this year and some will go out of business if freight rates don’t recover. “I have no idea who that will be, because we are all different, but it will not be Maersk.”
“Our plans assume all our competitors will be there tomorrow, but if something happens we need to be ready to move in, take a bigger share of the business if the opportunity is there.”
Container shipping will take longer than other sectors to recover after the recession because of the glut of vessels, according to Kolding.
Maersk’s container shipping unit boosted net profit to $205 million in 2008 from $106 million in 2007 boosted by cost cuts, including 4,500 layoffs.