Maersk Line, in an effort to remain at the top position as the biggest container shipping company, ordered 11 new container vessels.
The company out of Denmark is a trendsetter in terms of global trade which transports nearly 15% of all sea freight. This 11 container order is Maersk’s first since 2011 and involves some of the world’s biggest shipping containers. Its competition struggles to catch up because of their losses.
On Tuesday, Maersk Line stated that it would buy the 11 container ships, all of which have the ability to house 19,630 20ft containers. This $1.8bn contract with Daewoo Shipbuilding & Marine Engineering out of South Korea, also includes an option for six additional vessels.
Maersk Line placed the order that will arrive sometime in 2017 or 2018, in order to replace ships that are small and inefficient as well as to remain competitive in the trade route with Asia and Europe.
Soren Toft, the chief operating officer of Maersk Line stated, “These vessels will help us stay competitive in the Asia-Europe trade and will be key in our strategy to grow with the market. We expect to order more vessels, which we can add to our fleet from 2017 and onwards.”
Maersk Line, which belongs to AP Moller-Maersk, a Danish corporation, is by far the most profitable company in the sector, and is 10% higher than its nearest competitor.
Maersk experienced low profitability due to remaining focused on cutting costs, oil prices, and slow sailing.
It just began an agreement with Switzerland’s Mediterranean Shipping Company, its former rival. This produces $350m in yearly savings for Maersk Line.
Maersk’s largest ships, Triple Es, are able to hold the weight of 180m iPads, and now have the ability to hold 19,224 20ft shipping containers.
Maersk Line lost some of its market share and dodged earnings forecasts but sill was the top operator in global trade and transport.
The chief executive of AP Moller-Maersk, Nils Anderson, stated last month that the weaker-than-expected numbers, did not bother him due to global trade experience a sluggish period. Maersk is still at the top of its game.