Maersk Line reapplies for TSA membership

“Five years ago, the market conditions were vastly different than they are today,” said Lars Mikael Jensen, the carrier’s vice president for Pacific trade, network and product. “Maersk Line is convinced that restoring profitability long-term is needed in the marketplace and has demonstrated market leadership in this regard. It is imperative that service levels involving vessel capacity and string frequency across the Pacific do not suffer as a result of continued rate deterioration.”

Jensen said that Maersk’s purpose in rejoining the TSA was “to develop a platform that allows customers and carriers to find stability for years to come, avoiding the gross fluctuations of 2009.” He particularly stressed the need to manage “this business … for long-term health and a return to profitable and sustainable operations.”

Factors adversely impacting ocean freight rates, according to Maersk, have been decreased volumes, fuel price volatility and excess capacity. The company warns that the liner shipping market “remains extremely fragile” and that “continued rate declines could result in far-reaching and possibly permanent implications for global trade, including fewer services.”