Maersk Line to defend market share: Nils Andersen
AP Moller-Maersk chief executive Nils Andersen says that Maersk Line is ready to lower prices to retain market share in its container business, according to Copenhagen-based newspaper Dabladet Borsen.
“We will not allow anyone to take market share from us by systematically undercutting our prices. If it comes down to that we’re ready to fight it out on prices,” the newspaper quoted Mr Andersen as saying.
Maersk, which owns the world’s largest container line, reported a loss of $540m on Friday, slipping into the red for the first time. All of its major losses were related to shipping.
Nevertheless, analysts said that the company’s results could have been worse, and that aggressive cost-cutting since 2008 had given it a margin of advantage over the world’s other ailing major lines.
Maersk has cut a total of 6,000 jobs from its shipping business since 2008, and recent cuts have garnered it up to $1.5bn in annual savings. These factors have given the company some flexibility in setting prices as a result, Andersen told Lloyd’s List on Friday.
Maersk’s cashflow position is also robust, with no major debt facilities coming due until 2012.
“We will not allow anyone to take market share from us by systematically undercutting our prices. If it comes down to that we’re ready to fight it out on prices,” the newspaper quoted Mr Andersen as saying.
Maersk, which owns the world’s largest container line, reported a loss of $540m on Friday, slipping into the red for the first time. All of its major losses were related to shipping.
Nevertheless, analysts said that the company’s results could have been worse, and that aggressive cost-cutting since 2008 had given it a margin of advantage over the world’s other ailing major lines.
Maersk has cut a total of 6,000 jobs from its shipping business since 2008, and recent cuts have garnered it up to $1.5bn in annual savings. These factors have given the company some flexibility in setting prices as a result, Andersen told Lloyd’s List on Friday.
Maersk’s cashflow position is also robust, with no major debt facilities coming due until 2012.