Copenhagen/Hamburg — AP Moller-Maersk, owner of the world’s largest container line, said mergers such as the combination of its three main Japanese rivals provide relief to an ailing industry that has been characterised by overcapacity. Nippon Yusen KK, Mitsui OSK Lines and Kawasaki Kisen Kaisha said on Monday they plan to merge, giving them control of 7% of the world’s container shipping trade. Its the latest example of industry measures to create scale in an effort to adapt to a world in which freight rates have been under pressure since 2007. Soren Skou, Maersk Line’s CEO who also runs the Maersk group, said in October the company would stop buying new ships and instead try to expand through takeovers. "We welcome consolidation," Mikkel Elbek Linnet, a spokesman for Maersk Line, said. "Our industry is fragmented and consolidation can help transform our business for the benefit of our customers." The comments come as Maersk puts its group structure under strategic review. Manageme...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.