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AP Møller-Maersk shifts investment away from shipping

AP Møller-Maersk shifts investment away from shipping

In an interview with the Financial Times, Nils Andersen, the Group’s chief executive, said that the decision had been taken despite Maersk Line succeeding in raising its rates during this year.

Looking forward over the next five years, he said that although investment in Maersk Line would cease, there was enough capacity to grow in line with market demands.

Investment shrinkage in the shipping line will eventually reduce its capital in the business from 30% to 25%; the other businesses will account for more than 50%.

The first hint that the Group was looking to change course came in the summer, when Andersen announced that although the shipping line would take delivery of the 20, 18,000 teu vessels on order, Maersk would not invest in more ships for up to three years as a result of oversupply.

With 16% market share, Maersk Line posted a profit of US$498m in Q3-1012; this followed a loss of US$289m for the same period last year.

(Source: Financial Times)