A.P. Moller-Maersk (APMM) has announced strategic changes that will see its Safmarine brand integrated into Maersk .
In addition, the Damco brand’s Air and LCL (Less than Container Load) offering will be combined with Maersk’s logistics and services products.
Also, a more simplified and customer-centric global Ocean & Logistics organisation is being introduced.
In addition, Maersk will simplify its organisational structure across Ocean & Logistics globally to further improve customer centricity and efficiency.
As part of this, the back offices of Maersk and Hamburg Süd will come closer together into more customer-centric teams, while continuing to meet customers as two separate brands with a differentiated service model.
David Kerstens, Equity Analyst at Jefferies International, said: “The Damco and Safmarine brands will be integrated into Maersk, affecting c4% of headcount, estimated to lead to savings of c$200m.”
Vincent Clerc, CEO of Ocean & Logistics, APMM, said: “Our customers are at the heart of our vision. Their evolving supply chain needs are increasing the demand for multiple modes of transport and to meet these needs, we’re bringing our company’s expertise and capabilities even closer together. Taking these steps are key to accelerating our transformation.
“With the integration of Safmarine, we can present Safmarine customers with the full ocean and supply chain offering and more scale. At the same time, I’m very excited to have Safmarine’s passion for customers closer to Maersk by uniting our teams.”
Since focusing purely on freight forwarding in 2018, Damco has demonstrated significant value to customers in the Air and Ocean LCL space, said an APMM spokesperson.
Said the spokesperson: “During this time, it has become apparent through close customer engagements that the value proposition of Maersk can be greatly enhanced with the expansion of multiple modes of transport.”
The integration of Air and LCL into Maersk will help meet these needs and give businesses access to a simplified, connected and agile experience under the Maersk brand, as well as to its scale, said the spokesperson.
Maersk uses its own assets to offer unique value propositions, hence it will not pursue the Ocean FCL Multi-carrier product (NVOCC) as a general offering.
Said Clerc: “Businesses need Air and LCL products to connect their supply chains and with these offerings firmly placed in our global integrated portfolio, we aim to serve our businesses better and more efficiently across their supply chains.
“Our colleagues in Damco have delivered a remarkable effort under challenging market conditions, serving customers through focus, discipline and expertise which will now be a strong asset for our customers in Maersk.”
Due to the changes, the Safmarine and Damco brands will no longer be marketed by the end of 2020.
“Hamburg Süd is known in the industry for its unmatched customer proximity, for its long-term and direct customer relationships, for being reachable in person, and for providing advice at the local level,” said Dr. Arnt Vespermann, CEO of Hamburg Süd.
“We want to further enhance these advantages for our customers in order to differentiate ourselves even more. Our customers expect a very personal and local customer experience, and this is what they’ll get even more of in future.”
Clerc added: “Hamburg Süd is a strong brand with its own value propositions complementing those of Maersk. By bringing the product teams closer together we want to secure stronger alignment across the teams and stronger brand positioning based on insights into our customers’ needs, enabling us to serve all customers with an optimal product and service offering.”
