A.P. Moller - Maersk has announced the signing of a global end-to-end logistics agreement with Danish Crown from 2021. The three-year end-to-end agreement covers all Danish Crown’s business units, delivering solutions on ocean services, inland logistics and cold chain logistics. Access to the digital supply chain platform, Tradelens, which is underpinned by blockchain technology, is also a core part of the agreement between A.P. Moller - Maersk and Danish Crown. A.P. Moller - Maersk - Danish Crown Agreement Vincent Clerc, Executive Vice President and Chief Executive Officer (CEO) (Ocean and Logistics), A.P. Moller - Maersk, said "We are excited to be chosen as Danish Crown’s main logistics company. The food supply chain is highly demanding, but we will work hard to provide fast, reliable and dynamic supply chain solutions to Danish Crown, as a modern end-to-end logistics company with fully controlled assets." Danish Crown is one of the world's largest exporters and the number one supplier of pork in Europe. The Danish Crown Group is also the largest meat-processing company in Europe, and Danish Crown Beef is a key player in the European beef market, while the groups trading company ESS-FOOD sells and distributes fresh and frozen foods worldwide. The agreement finally includes DAT-Schaub, which is globally renowned in casings for sausage production. Flexible and resilient supply chain With a significant export to Asia and a growing business in both North America and South America, it is key for Danish Crown to ensure a flexible and resilient supply chain, to support their business needs and meet their sustainability targets. There is no doubt, that Maersk is leading the sustainability transition within container logistics" Jais Valeur, the Group Chief Executive Officer (CEO) of Danish Crown, said "There is no doubt, that Maersk is leading the sustainability transition within container logistics, which very much aligns with our own ambitions, to become the world´s most sustainable meat supplier in 2030. Maersk is a natural choice for Danish Crown, as our customers will expect that we are able to undertake the responsibility of all business activities, in the food supply chain, right from the Danish farmer to the dinner tables in Shanghai, Tokyo or New York." Key strategic partnership As one of the largest food exporters in the world, Danish Crown values an active partnership with a logistics major company, such as Maersk, that can accelerate their business and reduce complexity. Jais Valeur adds, "Through sheer business size and its extensive network, Maersk can offer a reliability in our supply chains, which our customers are increasingly demanding. At the same time, we will get a partner in Maersk, who understands and prioritises the importance of an active collaboration in our daily business. This close collaboration is key and will ultimately service our customer’s needs into account." The global agreement will enter into effect as of 1st October 2021.
This acquisition strengthens A.P. Moller - Maersk’s e-commerce Logistics products suite in line with its strategic business transformation. "With B2C Europe, we are closing the circle around our e-commerce logistics expansion. Our logistics product line-up growth continues to support our long-term plans to help customers sell through any sales channel, deliver in any way, and manage their supply chains seamlessly." "This year, by adding Visible SCM, HUUB and now B2C Europe´s capabilities we set out the foundation to upscale our platform and e-commerce skills globally, building product returns cycle´s defining B2C supply chain success," said Vincent Clerc, Executive Vice President and CEO of Ocean & Logistics, A.P. Moller – Maersk. Offering Europe-wide last-mile rates B2C provides table expertise and skills to enable Maersk´s customers to take full control of their supply chains The acquisition of B2C Europe will enable Maersk to offer Europe-wide last-mile rates to customers in Europe, North America and China through one simplified interface. B2C Europe will bring an asset-light delivery product that uses technical integrations to collect parcels at its customers warehouses and inject them into all important European carrier networks. "We look very much forward to the journey ahead. We put on the table expertise and skills which will enable Maersk´s customers to take full control and drive flexibility into their B2C supply chains," said José Vega Vázquez, B2C Europe´s CEO. Company's contribution The company’s offering consists of labelling services, pick-ups, sorting parcels, linehaul and injection into the last mile delivery network of 100+ connected carriers across Europe, including full returns logistics mainly covering 35 European countries. B2C Europe is operationally present in four key European e-commerce countries (Netherlands, France, United Kingdom, and Spain), and has offices in China. Transaction value The value of the transaction is USD 86m post IFRS 16 which corresponds to an EV/EBITDA of 11x reflecting the strong growth outlook and synergies. Based on the 2021-forecast the revenue is estimated to be around USD 140m and with a post- IFRS 16 EBITDA of around USD 8m reflecting a margin of 5.7pct. In the course of 2021, Maersk has expanded its e-commerce footprint with the acquisition of the US-based logistics company Visible MSC in mid-August and five weeks after the acquisition of the Portuguese cloud-based logistics start-up, HUUB.
As a disruptive force in the e-commerce space, the acquisition of HUUB strengthens Maersk´s technology capabilities, bringing the best attributes of a modern entrepreneurial agile workplace. "HUUB is a great fit for Maersk, a curious team with inspiring founders. With HUUB we are acquiring world-class capabilities and talent that will allow us to greatly accelerate the development of our omnichannel offering. This will make it much easier for our customers to focus on their core business of producing and selling goods and swiftly bringing them to the end-consumers," said Vincent Clerc, Executive Vice President and CEO of Ocean & Logistics, A.P. Moller – Maersk. Set technology Once HUUB's technology is embedded into Maersk’s existing solutions, customers will get fully integrated Maersk e-commerce Logistics products with modern highly user-friendly customer and partner interfaces. Furthermore, Maersk customers will have a single source of truth for stock visibility. "Since day one, HUUB has had two main purposes: disruption and scale. Disruption to have the capacity – and courage - to say that a multi-billion dollar industry needs a digital revolution and to envision and create a revolutionary supply chain platform and ecosystem." Maersk is the scale enabler that will allow HUUB platform to serve customers and lead the e-commerce logistics market "In addition, there is the scale that allows disruption to occur, feeding it with the volumes that can make a difference. For HUUB, this joint path that now starts with Maersk represents both. Firstly, the validation of our disruptive vision and product. And secondly, Maersk is the scale enabler that will allow our platform to serve amazing customers and lead the eCommerce logistics market," said Tiago Paiva HUUB CEO. Collaboration with start-ups Maersk Growth, the corporate venture arm of A.P. Moller - Maersk., first engaged with HUUB in May 2019 as they believe collaboration with start-ups is an important lever for innovation. With this acquisition by Maersk, Maersk Growth as well as the rest of the investors are exiting the company. Other acquisitions To strengthen its integrated logistics offering, Maersk set out two and a half years ago on an M&A journey, first acquiring Vandegrift, a customs broker, acquiring Performance Team, a warehousing and distribution specialist and, KGH a Customs Services. In earlier August 2021, Maersk expanded its e-commerce footprint by announcing the acquisition of Visible MSC and its intention to acquire Europe B2C. HUUB is the third acquisition within E-commerce Logistics, underlining that this is a new and important strategic focus area towards delivering integrated logistics to customers.
A.P. Moller - Maersk announced the signing of a fully carbon-neutral transport agreement on ocean services with BESTSELLER. The open-ended agreement on lifestyle logistics covers all of BESTSELLERs global transportation requirements and includes inland logistics and CFS handling (warehousing). ECO Delivery “I am very pleased that BESTSELLER, one of the top fashion and lifestyle groups in the world, has chosen Maersk ECO Delivery to reduce the company's carbon footprint in transportation at sea." "This is a solution that makes a real difference as ECO Delivery uses sustainable biofuel to power selected Maersk-vessels and helps BESTSELLER make progress towards their ambitious sustainability goals,” said Vincent Clerc, Executive Vice President and CEO Ocean & Logistics, A.P. Moller - Maersk. Climate Stratgey Maersk ECO Delivery is a biofuel that is carbon neutral and manufactured from recycled sustainable biomass BESTSELLER has an ambitious climate strategy with clear reduction targets in line with the Paris agreement with the ultimate goal of becoming climate positive. BESTSELLER has through the Science Based Targets Initiative committed to reducing absolute Scope 1 and 2 GHG emissions by 50 pct. by 2030, and Scope 3 GHG emissions from purchased goods and services and upstream and downstream transportation by 30 pct. over the same timeframe. Improving environment “In BESTSELLER, we are continuously exploring ways of improving our environmental footprint and we see the option of leveraging biofuel for our sea transportation as an important course of action." "We are pleased to be working with Maersk to take this initial step, which we expect to be one of several on our way to ultimately realizing a fully carbon-neutral transportation option,” says CFO and Head of Logistics, Thomas Børglum-Jensen, Bestseller. About ECO delivery The Maersk ECO Delivery is a biofuel that is carbon neutral and manufactured from recycled sustainable biomass. It is certified as a sustainable fuel by the International Sustainability and Carbon Certification (ISCC) body. The global agreement on ECO Delivery and long-term logistics partnership between Maersk and BESTSELLER will enter effect as of 1st September 2021.
A.P. Moller - Maersk introduces strategic changes that will further improve customer experience and end-to-end service delivery. As part of this, the Safmarine brand will be integrated into Maersk to enhance customers’ access to the global integrated offering. In addition, the Damco brand’s Air and LCL (Less than Container Load) offering will be combined with Maersk’s logistics and services products to complement its end-to-end offering. Also, a more simplified and customer-centric global Ocean & Logistics organisation is being introduced. Accelerated transformation These changes represent a major step towards becoming an integrated container transport and logistics company, connecting and simplifying customers’ supply chains. With the integration of Safmarine, we can present Safmarine customers with the full ocean and supply chain offering and more scale" “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,“ says Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller - Maersk. Customer-centric Culture Over time, the value propositions of Maersk and Safmarine have converged, as both brands have been focusing on building a customer-centric culture and as the digital interactions with customers have increased. “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,” says Vincent Clerc. Since focusing purely on freight forwarding in 2018, Damco has demonstrated significant value to customers in the Air and Ocean LCL space. 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. 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. Challenging Market Conditions Serving customers through focus, discipline and expertise which will now be a strong asset for our customers in Maersk" “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,“ says Vincent Clerc and continues: “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. 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.
A.P. Moller - Maersk announces that it has reached an agreement with Bridgepoint Development Capital to acquire KGH Customs Services (KGH), a Sweden-based specialist in trade and customs management services in Europe. This will further enhance Maersk’s capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers. Seamless customer experience With its specialised expertise across freight modes (air, ocean, land) and deep knowledge in selected industries, combined with innovative technology, KGH will significantly improve Maersk’s overall offering within customs services. KGH has a strategy focused on digital solutions and technology as an enabler for a more seamless customer experience, which also corresponds with Maersk’s own digital transformation journey. Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller - Maersk. sees KGH as a perfect fit to Maersk offerings within logistics and services as well as another key building block in its strategic ambitions. With KGH, we will reach more of our customers in Europe through a larger geographical footprint and digital solutions"“There are no end-to-end solutions without customs clearance. With KGH, we will not only be able to strengthen our capabilities within customs services and related consultancy, but also reach more of our customers in Europe through a larger geographical footprint and digital solutions that will enhance our ability to meet our customers´ end-to-end supply chain needs. We achieve all this in one go instead of having to build our expertise through multiple acquisitions,” says Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller - Maersk. Seamlessness and global reach Based in Gothenburg, Sweden, KGH is a well-known and respected partner to a wide range of authorities, providing valuable consulting and advice, most recently in the connection with Brexit, as advisors to various authorities in the EU and the UK. KGH has in the past years achieved double-digit annual growth resulting in a revenue of approximately SEK 890m in 2019 (USD 95.5m), recurring EBITDA of approximately SEK 160m (USD 17.2) and an EBITDA margin of approximately 18 percent. KGH has 775 employees and a yearly business of 1.98m clearances. “With Maersk, we will have a long-term home with a company that share our values. By joining forces, we will be able to continue to build on the great success our teams have achieved, and at the same time play a key role in a combined entity providing a range of different services within the transportation and logistics industry. Customs services is an essential part of our customers’ end-to-end needs which we in unison with Maersk will be able to provide with seamlessness and global reach,” says Lars Börjesson, CEO of KGH Customs Services. Combined operations With the acquisition of KGH, Maersk will have a solid platform for growth in customs services in Europe" The acquisition of KGH makes Maersk an attractive partner for its customers operating in individual countries, as well as for those looking to combine several geographies under one service provider. With the acquisition of KGH, Maersk will have a solid platform for growth in customs services in Europe with own setups operating in 22 European countries with a total of 2.38m clearances on a yearly basis, 960 specialised employees and a combined turnover of SEK 1.02B (USD 109.4m). Maersk will acquire KGH for a consideration of SEK 2.6B (USD 279.0m) on a cash and debt free basis equivalent to a multiple of 16.3x 2019 EBITDA before synergies, excluding an earn-out component contingent on future Brexit performance. When ramped up, annual EBITDA synergies from the combination are expected to amount to approximately SEK 50m-75m (USD 5.4m-USD 8.0m). The closing of the acquisition is subject to customary regulatory approvals. Until then, Maersk and KGH remain two separate companies and thus will do their business as usual.
A.P. Moller - Maersk. is further assisting its customers with decarbonising their supply chains with the launch of an Emissions Dashboard. The Emissions Dashboard is an analytical data tool where customers are provided with carbon footprint measurements from their entire supply chain, giving a detailed emissions overview of whether their products are transported via truck, train, plane, or vessel. With an emissions overview, companies will be able to disclose emissions information to the public, covering all their container flows. Decarbonise supply chains The Emissions Dashboard conforms to the GLEC methodology to calculate emissions “As our customers trust Maersk with a wider part of their supply chains, they also expect from us that we assist their climate actions through sustainable end-to-end offerings. An increasing share of our customers are setting ambitious sustainability goals, making emissions visibility critical in order to document performance towards these targets." "The Emissions Dashboard will ensure full visibility for our customers to leverage on their journeys towards decarbonised supply chains,” explains Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller - Maersk. Calculating emissions Designed as a one-stop-shop, The Emissions Dashboard conforms to the Global Logistics Emissions Council (GLEC) methodology to calculate emissions and it handles emissions data from all carriers involved in the end-to-end supply chain – not only emissions data from Maersk. The analytics provides customers with the opportunity to get a detailed overview of their opportunities to lower emissions from the transport of their products. At the same time, the data creates a solid basis for logistics emissions reporting which can be used in corporate sustainability reports. Testing the dashboard The clear visuals and insights provided by the Emissions Dashboard offer an accurate picture of emissions 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. The Emissions Dashboard has been tested by 10 key customers of Maersk who have provided valuable and positive feedback. Among these are leading science-based agricultural technology company Syngenta. Feedback “Maersk and Syngenta have a joint vision to significantly reduce our carbon footprint for transport and logistics. We know that to succeed, we will need high-quality emissions data." "The clear visuals and insights provided by the Emissions Dashboard offer an accurate picture of our emissions, guide our decision-making, and help us identify the most impactful changes we can make. Our collaboration with Maersk moves us towards a more sustainable future,” says Ai May Ong, Global Logistics Capacity Manager, Syngenta. The Emissions Dashboard is part of Maersk’s commitment to global sustainability – a commitment that is shared with an ever-increasing number of customers, consumers and investors alike.
The global pandemic has changed all lives, the entire world, and its supply chains. Still very much affecting families, friends and livelihoods, the industry is shifting from personal counters to digital doorways. What COVID-19 has amplified is the urgency in quick reactions to change, as well as the importance of contingency management, visibility and traceability. At the beginning of March, Vincent Clerc, A.P. Moller - Maersk’s CEO of Ocean & Logistics spoke at the JOC Transpacific Maritime Conference to set the context of supply chain disruption for customers: “The threat of supply chain disruption is an industry constant. The pandemic has tested every supply chain and the test is still ongoing,” Clerc said. Digitisation One of the themes specifically mentioned is the potential of digitisation and how companies across the globe have taken a fast track to adopt new technology to simplify and connect their supply chains. The combination of big data applications and AI algorithms makes all aspects of the supply more accurate and efficient. As the global integrator of logistics, Maersk wants to change logistics from being an art of problem-solving into a science of opportunity-seeking. Maersk App One can easily track shipments, receive personalised notification on shipment changes and much more To help one manage the day-to-day business, with a 270% YoY growth in 2020, Mobile is Maersk’s fastest-growing customer engagement channel. The customers worry that being away from their desks will mean that they will miss important shipping information. Being in a low-margin business, Maersk understands that visibility is crucial. With the Maersk App, one can easily track shipments, receive personalised notification on shipment changes, check outstanding tasks and submit documentation, as well as lookup local shipping rules, rates, tariffs and more. All this information is also easily shared with colleagues if needed. Maersk Logistics Hub The online Maersk Logistics Hub has interactive map functionality to track any Maersk vessel in real-time and AI-powered predictive analysis and estimated times of arrivals (ETA). Also, 78% of all booked reefer containers this year have opted for our Captain Peter technology, a digital reefer visibility assistant that monitors the cargo, the conditions inside the container and its location on the journey. Out of these, 28% (~150,000) have signed up for the premium view, showing the importance of having eyes on the cargo from the moment the chilled goods are locked inside the container right up to delivery at the destination (port and/or store door). This year alone, 8.500 users have accessed the tool. Taking decisions All of these solutions enable one to make key decisions with relevant data well ahead of any crunch point. The importance of digital helpers is becoming more and more crucial. “The digital platforms which completely changed consumer behavior in recent years will do the same for our industry, and that will be for the better. I can only encourage everybody to have a thorough reflection and discussion with the right partners for your success because disruption and change will come again,” Clerc finishes.
As A.P. Moller - Maersk. has delivered strong earnings and growth momentum during the last year and saw the strategy of becoming an integrated container logistics company validated, the company now stands ready to further efforts in building the three world-class divisions with strong synergies between them. All are embedded with a customer-centric, digital and value creation rooted mindset. The message fell on the company’s 2021 Capital Markets Day. Here, Maersk will provide institutional investors and financial analysts with updated ambitions on the development and progress in the 2021-2025 horizon. Delivering returns Ocean will continue to deliver stable earnings levels and strong enabler of the company’s strategy ”Today, we are rapidly transforming our A.P. Moller - Maersk in line with our strategy. We have come far, but we are not yet done. We continue to see a significant opportunity in the market for global end-to-end logistics and are confident that we can continue to deliver value-generating returns above 7.5 pct. ROIC, considering the extraordinary earning levels of 2021 an average of above 12 pct. for the five year period 2021-2025,” said CEO, Søren Skou, A.P. Moller - Maersk. Ocean delivers stable earnings In the heart of Maersk´s integrator strategy lies the value creation model, which links Logistics and Ocean through customer synergies and Ocean and Terminals through financials and operational synergies. Whereas Ocean will continue to deliver stable earnings levels and strong enabler of the company’s strategy, Logistics & Services aims for significantly higher growth rates and new ways of addressing customers needs. ”With our portfolio, our approach, and the need that we see across customers and verticals, we are confident that Logistics & Services has become our growth engine, capable of growing organically at 10 pct. per year while maintained a strong EBIT margin above 6 pct.” said Vincent Clerc, CEO of Ocean and Logistics, A.P. Moller – Maersk. Investment To support this growth, Maersk will spend about USD 1 bn of investment of CAPEX over the coming two years and continue to complement this with Mergers and Acquisitions to continue to build up capabilities and progressively scale. Maersk plans to invest approximately USD 600 mill in total on automation in around Also, on the terminal side, Maersk will focus on best-in-class returns and over the next five years, the company plans to invest approximately USD 600 mill in total on automation in around 30 terminals. The company has already seen significant improvements on the operational side as well as reductions in carbon emissions from the increased use of automation. Financially, Maersk will continue to secure a financial solidity and guides for a stable underlying profitability and cash generation through continued capital discipline with CAPEX close to depreciation. Authority comment ”We will continue to execute on the strategy through capital discipline. Given the financial strength of the company we are able to maintain a strong balance sheet and use cash to invest in the business, acquisitions, ordinary dividends and lastly return excess cash through share buy-back or extra-ordinary dividends,” said the CEO, Søren Skou, A.P. Moller - Maersk. Maersk also announced the signing of the UN Global Compact commitment letter to a “Business Ambition of 1.5C”, committing to set a long-term science-based target to reach net-zero emissions across the full value chain no later than 2050 and set interim targets in line with Science-Based Targets initiative criteria.
The Board of Directors of A.P. Moller - Maersk has decided to appoint Chief Technology & Information Officer (CTIO) Navneet Kapoor to the Executive Board with effect from 1 April 2021. The appointment is both a recognition of the role Technology plays for the transformation of A.P. Moller – Maersk, and the strategic leadership capabilities of Navneet Kapoor. Responsibility Navneet Kapoor leads the efforts to build competitive advantage from technology As CTIO, Navneet Kapoor leads the efforts to build competitive advantage from technology, a central element in the Strategy of the company. The company is in the middle of a multi-dimensional digital transformation that aims to build a new technology platform offering new digital products to our customers supported by standardised and automated processes across the company. Authority comments “Technology today is mission critical for A.P. Moller - Maersk and for our transformation. To succeed, we are investing in modern technology platforms with end-to-end standardised core processes. Navneet Kapoor has done an excellent job in accelerating this agenda since he took on the position as CTIO last year and brings unique and critical perspectives to our business transformation.” says Søren Skou, CEO of A.P. Moller - Maersk. Jim Hagemann Snabe, Chairman of the Board of A.P. Moller - Maersk adds, “We have turned an important corner in the ambitious transformation process that was initiated in 2016 with the aim of creating an integrated logistics company with growth and more stable profitability. A key pillar in our transformation is the use of technology to improve the interaction with our customer and build competitive advantage.” “The role of the CTIO is key to executing this next part of our strategy and having Navneet Kapoor joining the Executive Board is a recognition of the importance and impact of Technology and of his personal capabilities.” Executive Board consist of Søren Skou, CEO of A.P. Moller - Maersk Patrick Jany, CFO of A.P. Moller - Maersk Henriette Hallberg Thygesen, Executive Vice President A.P. Moller - Maersk and CEO of Fleet & Strategic Brands Vincent Clerc, Executive Vice President A.P. Moller - Maersk and CEO of Ocean & Logistics Morten Engelstoft, Executive Vice President A.P. Moller - Maersk and CEO for APM Terminals Navneet Kapoor, Executive Vice President and CTIO of A.P. Moller - Maersk Background of Navneet Kapoor Navneet Kapoor has been with Maersk since 2017 and has held various responsibilities Executive Vice President, Navneet Kapoor (50) has been with A.P. Moller - Maersk since 2017 and has held various responsibilities, including Chief Transformation Officer and Head of Global Shared Service Centres. Since February 2020, he has held the position of Chief Technology & Information Officer. Experience Prior to joining Maersk, Navneet Kapoor was Senior Vice President, Technology at Target Corporation, where he was instrumental in driving the digital transformation of the company, and before that, he also held various leadership roles in General Electric. Education Navneet has a Ph.D. in Chemical Engineering and an M.S. in Electrical Engineering from the University of Minnesota, USA, an MBA from the University of Chicago Booth School of Business, USA, and a B.Tech in Chemical Engineering from IIT Kanpur, India.
Vincent Clerc, A.P. Moller - Maersk’s CEO of Ocean & Logistics spoke at the JOC Transpacific Maritime Conference - North America’s largest (virtual) customer and industry event - to set the context of supply chain disruption for customers and three themes for improvement. “The threat of supply chain disruption is an industry constant,” said Mr. Clerc addressing the virtual event from his office in Copenhagen, Denmark. “According to a survey done by the Economist Intelligence Unit, 94% of US retailers say that their supply chains were significantly impacted by the pandemic. “The pandemic has tested every supply chain and the test is still ongoing,” he added. Mr. Clerc cited three key themes requiring attention for the future: The potential of digitisation, the power of integrated solutions and decarbonising logistics. Digitisation The blendof big data applications and AI algorithms make all aspects of the supply more accurate and efficient Supply chains are struggling with the fragmentation of data, low visibility and low levels of collaboration between partners because the industry is behind the digitisation curve. The consequences of being behind are costly - especially when there are sharp shifts in consumer demand as 2020 showed. Dealing with the challenges, companies across the globe have taken a fast track to adopt new technology to simplify and connect their supply chains. The combination of big data applications and AI algorithms makes all aspects of the supply more accurate and efficient. “The digital platforms which completely changed consumer behaviour in recent years will do the same for our industry, and that will be for the better,” said Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller – Maersk. Integrated solutions Many supply chains have, over time, been increasingly fragmented into a complex network of suppliers segmented across products to preserve procurement power. The cycle of consolidation, shipment, deconsolidation and distribution - if split between different vendors is not optimal for connectivity due to the inherent changes that occur. The total outcome amounting to less value than the sum of the parts. This was the case even before COVID-19, and it was certainly the case in 2020. “As resilience and flexibility have become key, these fragmented set ups have proven to be increasingly clumsy in their ability to orchestrate, and equally ineffective and costly to cope with demand shifts,” commented Mr. Clerc. “It is clear that there is a need for a strong and experienced logistics partner who translates strategy into tangible outcomes and can take accountability for these outcomes.” Decarbonising logistics Maersk is accelerating efforts to decarbonise marine operations with the launch of the first carbon-neutral liner vessel Mr. Clerc also cited the importance of working with industry partners and customers to plan and develop supply chains in a more sustainable way. Maersk is accelerating efforts to decarbonise marine operations with the launch of the world’s first carbon-neutral liner vessel in 2023 - seven years ahead of the initial 2030-ambition. All future Maersk-owned new buildings will have dual fuel technology installed, enabling either carbon-neutral operations or operation on standard very low sulphur fuel oil (VLSFO). Maersk will continue to explore several carbon-neutral fuel pathways and expects multiple solutions to existing in the future. Methanol, ethanol, alcohol-lignin blends and ammonia are the major candidates because of their potential to scale. The technology is now available; securing a competitive global supply chain through the fuel value chain is the main challenge now and stakeholders must cooperate to meet the demand. Logistics as a science of opportunity seeking “On all three themes; digitisation, integration of supply chains and decarbonisation, I can only encourage everybody to have a thorough reflection and discussion with the right partners for your success, because disruption and change will come again,” Mr. Clerc advised. “As the global integrator of logistics, connecting and simplifying our customers’ supply chains – we want to change logistics from being an art of problem-solving into a science of opportunity-seeking,” he finished.
A.P. Moller - Maersk has announced the signing of a logistics agreement with Novo Nordisk, effective from 2021. The three-year agreement on cold chain logistics covers transportation, including ocean services and inland logistics. Maersk - Novo Nordisk partnership We are proud to be chosen as one of Novo Nordisk´s main logistic companies" Vincent Clerc, the Executive Vice President (EVP) and Chief Executive Officer (CEO) - Ocean and Logistics, at A.P. Moller – Maersk, said “We are proud to be chosen as one of Novo Nordisk´s main logistic companies. Transporting pharmaceuticals on a global level is a demanding task, with various complexities that require flexible and resilient supply chains, as well as digital and eco-friendly solutions.” Vincent Clerc adds, “This achievement showcases the rapid transformation of A.P. Moller - Maersk as a modern end-to-end logistics company, with fully controlled assets.” A.P. Moller - Maersk’s ECO Delivery One of the largest pharmaceutical companies in the world, Novo Nordisk has chosen A.P. Moller - Maersk’s ECO Delivery to reduce the carbon footprint in transportation. The initiative uses sustainable biofuel to power selected Maersk vessels and helps Novo Nordisk to make progress towards its ambitious sustainability goals. The global agreement will come into effect as of 1st April 2021. Achieving zero environmental impact Rune Sylow, Corporate Vice President, Strategic Sourcing, at Novo Nordisk, said “Our ambition of achieving zero environmental impact is a cornerstone of our aspiration to be a truly sustainable business. We consider A.P. Moller - Maersk to be the right global distribution partner, to secure the steady, environmentally friendly delivery of our high-value shipments and we look forward to the collaboration.”
The Global Shippers Association (GSA), recently invited Maersk leaders to discuss Logistics & Solutions with their members via a virtual session. The GSA is a Fort Myers, Florida-based consortium of major corporations who combine their freight volumes to negotiate international transportation services with the world’s leading carriers. Best account managers Mark Chadwick, President of the GSA, opened the session by setting the context. “Maersk has been a key partner for many years and we have great connections to the leadership team in Copenhagen and the leaders here in North America – and one of the best account managers in the business - globally. Normally we don’t have these sessions, but Maersk has been so supportive this year. They’re branching out from ocean freight into other areas of logistics and we wanted to thank them for their partnership this year.” Maersk has been a key partner for many years and we have great connections to the leadership team" Vincent Clerc, A.P. Moller - Maersk’s Ocean & Logistics CEO described how “Maersk is moving from selling ocean shipping services - to a company that listens and partners with its customers to offer an integrated logistics value proposition that can really benefit GSA’s strategic progression, making your supply chains work better and go faster.” Supply chain disruptions Maersk North America speakers included Mike Meierkort, Head of Logistics & Services, Faith Dennison, Head of Lead Logistics (formerly known as Supply Chain Management) and Melinda Damico, Head of Customs House Brokerage Growth. Key topics tailored to the GSA members learning session were: Confronting supply chain disruptions due to COVID-19 Enabling resiliency in customers’ E2E supply chain Driving digitisation to enable transparency Optimising Customs and trade management Economist intelligence unit The Economist Intelligence Unit has already performed a survey and identified the top three topics During the session, Maersk announced they have begun a partnership with the UK-based, The Economist Intelligence Unit – who are working with a series of Maersk customers globally to identify short, medium and long term issues in supply chains. The Economist Intelligence Unit has already performed a survey and identified the top three topics of these customers: Traceability Making changes to global sourcing patterns Simplifying supply chains Faith Dennison of Maersk Lead Logistics recommends the following steps to address these issues: Step 1 Creating transparency in your logistics visibility and planning. Figure out where you are now in your inventory cycle - getting transparency across your organisation to get greater control Step 2 Establish control in how you are executing enables you to get to step 3 Step 3 End-to-end supply chain planning to address events and outcomes. The entire team must understand your vision and how you are leading the cargo flow Advanced data analytics Maersk IT has created solutions and platforms that connect data across multiple teams When the user gets to this level of transparency, control and business integration level, companies are able to achieve improved planning and reliability. As part of this process, Maersk IT has created solutions and platforms that connect data across multiple teams, using mobile channels, supply chain collaboration tools, advanced data analytics and AI built on a Maersk Data Lake. Mike Meierkort explained the supply chain cycle from start to finish and how to connect and simplify supply chains using an integrator strategy approach. Customs house brokerage Maersk Logistics & Services encompasses Lead Logistics, Landside transportation, Customs House Brokerage, Cold Chain, eCommerce, TradeLens (neutral, third party digital platform with Blockchain capabilities), Destination Cargo Management (DCM), Air Freight, Less-than container load (LCL), Depot Management and Value Protect. These services integrate with the global Maersk Warehousing & Distribution product In Warehousing & Distribution - in the North American market, Performance Team has 46 locations with DC Bypass programs, transload/deconsolidation services and last-mile transportation services. Several warehouse facilities focus on e-commerce fulfilment that now comprises 40% of the current activities – and includes partnerships with UPS and FedEx for direct to consumer service. These services integrate with the global Maersk Warehousing & Distribution product. Using innovative technology In Maersk Customs House Brokerage, Melinda Damico emphasised the importance of building strong Customs compliance programs through the use of innovative technology, trade compliance, and client management. Meetings such as these are part of Maersk’s ongoing efforts to provide customers with optimal supply chain efficiency and best practices. “These type of exchanges of ideas and expertise are at the core of Maersk’s commitment to customers and supply chain optimisation,” said Kim Pedersen, Global Head of A.P. Moller-Maersk’s Sales & Marketing – who is the Executive Sponsor of GSA to the Maersk Ocean & Logistics Management Board, representing their interests in future supply chain value propositions.