Speaking on a panel at the Port of Houston’s Global Freight Summit on 19 May, Maersk North America Managing Director Narin Phol shared the company’s timeline, strategy and plans to decarbonise operations by 2050. “Decarbonisation is an important agenda for the industry and for Maersk. We are part of the problem and so must be part of the solution. Around half of Maersk’s 200 largest customers have set – or are in the process of setting – ambitious science-based or zero-carbon targets for their supply chains, and the figure is on the rise. We don’t have all the answers therefore the process requires a lot of collaboration to achieve a common goal,” Mr. Phol mentioned in his opening remarks. Activities to decarbonise over the years Maersk has established a team focused on decarbonisation and the end-to-end activities necessary to decarbonise logistics, using a holistic approach. In 2018, the company announced a pledge to become carbon neutral by 2050. In the nearer term, by 2030 Maersk will continue to reduce CO2 emissions for ocean shipping by 60% per container per kilometer moved, through improved efficiency. Compared to the 2008 baseline, Maersk has already reduced CO2 emissions by 46%. In 2019, the company introduced a carbon-zero product called Eco Delivery, which offers cargo owners certified carbon neutral shipping based upon the use of sustainable biofuel on all major trades (limited availability, not a scalable product). In March 2020, the company announced that by 2023 they will have the first carbon-neutral liner vessel on the water – seven years ahead of the original plan. And, all future Maersk-owned new vessels will have dual-fuel technology installed, enabling either carbon-neutral operations or the use of today’s standard very low sulphur fuel oil (VLSFO) as a back-up option. Supply chain innovation Mr. Phol finished the session by saying “We will be actively looking to partner with customers and other members of the global logistics industry to drive innovation across the supply chain.”
Maersk Inc. North America has announced the start of a new service linking ports in Vietnam and China with the US East Coast via the Panama Canal, starting in May 2021. TP23 string and service The service will improve speed, reliability and coverage and integrate into US East Coast landside logistics offerings The TP23 string will include eight Maersk vessels and two from ZIM. The rotation is intended to be Vung Tau, Vietnam/Yantian, South China/Panama Canal /Savannah /Charleston/Newark, while due to congestion in Savannah, the rotation will initially and until further notice swap the U.S. calls to go Charleston/Savannah/Newark. The service will improve speed, reliability and coverage and integrate into US East Coast landside logistics offerings. Transit times are improved from Yantian to Savannah by 3-4 days (28-29 days) and Yantian to Charleston by 7-8 days (28-29 days) over existing services. The Vietnam call has been added to provide more capacity to the rapidly growing market that has seen gains of 52% and 25% the past two years. Addressing the needs Narin Phol, Managing Director of Maersk North America said, “Importers are looking for more US East Coast gateways in their Asia/North America supply chains while exporters are looking for more equipment – especially in the Southeast US region. The TP23 service will enable us to address these needs while integrating our Warehousing & Distribution network.” Service provided TP23 will become a structured, stable, weekly service in 2021 with higher reliability The evolution of the TP23 Service reflects Maersk’s 2020 approach to serving the Transpacific to US East Coast cargo surges via additional capacity from service upgrades, extra-loaders and loadings on the Asia-Europe network for transshipment onto extra loader shuttles across the Transatlantic. The TP23 will now become a structured, stable, weekly service in 2021 with greater reliability. The new TP23 service highlights the innovative solutions Maersk made in 2020 to stay agile for customers facing economic and pandemic cycles: Deploying 48% extra capacity year-on-year in the Transpacific trade (July-November 2020 vs July-November 2019 period). Actions included:1) Launching the Asia/US West Coast TP3 Service as a new 2M US West Coast loop with 6 x 13,000 TEU vessels2) Upgrading the Asia/US East Coast TP11 Service from 6500 TEU to 8500 TEU vessels3) Upgrading the Asia/US East Coast TP88 Service from 4500 TEU to 6500 TEU vessels4) Launching nine, dedicated Maersk extra loaders for the US East Coast, representing 44,000 TEU extra capacity5) Launching two extra loaders shared with 2M partners for 13,500 TEU extra capacity6) Loading three partner-operated, US East Coast extra loaders7) Loading a significant amount of Asia/US East Coast cargo on the Asia/Europe network, using 11 dedicated Maersk extra loaders across the Transatlantic Goals “The goal in 2021 is to build on this momentum and enable customers to grow their business with an integrated ocean/port/warehouse/trucking model to attain supply chain efficiency,” added Mr. Phol.
In response to surging US imports and the resulting intermodal equipment flow imbalances, all members of the logistics sector have been challenged to find solutions. Maersk senior officials have stated that this is a situation the company takes very seriously. Every component of Maersk’s integrated global logistics business model is working across the entire logistics spectrum to respond with solutions involving all supply chain participants. Maersk is taking steps to address the concerns of the US export community and the trucking industry feeling the impact during this already difficult time. Global trade patterns Global trade patterns often result in limited availability of empty containers in the US - which has a historic equipment imbalance of more imports than exports. This has been especially acute with US import demand spiking during the COVID-19 environment due to changing consumer spending patterns. Improving supply chain “Maersk is working with the FMC Chairman and Commissioners, the Agriculture Transportation Coalition (AgTC) and Trucking Associations like the HTA on the US West Coast, and the Association of Bi-State Motor Carriers on the US East Coast to find new and better ways to serve their needs. As the global integrator of container logistics, we are confident we can find workable solutions that will alleviate supply chain pain points,” said Soren Skou, CEO - A.P. Moller – Maersk. Virtual presentation Surging import cargoes have also been causing challenges for local truckers in major ports Maersk has met virtually with the Agriculture Transportation Coalition (AgTC) – a Washington D.C.- based trade group whose membership performs an important role in managing the interests of US agricultural exporters and transportation policy. Maersk’s Head of North America Trade, Franck DeDenis recently made a broadcast presentation to AgTC members during their virtual midyear meeting on December 8th. Additionally, FMC Chairman Michael Khouri has discussed the particular challenges facing the US export community with A.P. Moller-Maersk CEO Soren Skou and Maersk remains committed to taking actions it can to improve conditions for all supply chain participants. Addressing concerns “We are working closely with the Agriculture Transportation Coalition and local trucking associations to address their concerns of equipment availability and detention and demurrage issues - with more intensive meetings planned in the months ahead. These challenges require all participants to work together and we look forward to continuing our role in bringing much-needed solutions to the current issues.” “FMC Commissioner Rebecca Dye has the industry knowledge, relationships and credibility to sponsor the necessary industry solutions and we appreciate her leadership on this matter,” said Narin Phol, Maersk North America’s Regional Managing Director. Surging import cargoes have also been causing challenges for local truckers in major ports such as Los Angeles/Long Beach. Maersk is in daily contact with Weston LaBar, the President of the Long Beach, California-based Harbor Trucking Association (HTA). APM Terminals APM Terminals Pier 400 Los Angeles is the largest privately operated container terminal in the Los Angeles/Long Beach port – and in North America. As such, it plays a pivotal role in the daily flow of cargo with the trucking community. Working with Mr. Labar, the terminal is focused on dual transactions, which enable a trucker to return an empty container and pick up an import container for local delivery in the same trip. 65% of Pier 400’s gate transactions are dual transactions – and the goal is to increase this, enabling higher productivity trips for harbor truckers. Pier 400 has also offered late night, Friday gates and Saturday gates based on customer and trucker needs during the peak season. Ocean carrier alliance Maersk operates in the 2M Alliance, considered the easiest ocean carrier alliance by truckers to work with Maersk operates in the 2M Alliance, considered the easiest ocean carrier alliance by truckers to work with (since the alliance consists of only two ocean carriers – Maersk and MSC – who each operate a single container terminal in the LA-Long Beach complex). This allows truckers to efficiently pickup and return containers to two facilities located very near each other. Also providing support on trucking issues, Maersk’s Regional Head of Transportation, Los Angeles-based Bill Peratt, is a member of the Harbor Trucking Association Productivity committee, contributing his expertise to finding solutions to the trucking industry’s challenges. Maersk is taking similar steps on a global level to understand customer pain points, find solutions and engage with regulators to improve the current logistics ecosystem.