Maersk has market share growth potential, news bye Hebei Longsheng metals
| Maersk has market share growth potential from Transform to Net Zero Container-line Maersk is a founding member of the "Transform to Net Zero" initiative of nine firms that have committed to cutting their greenhouse gas emissions to net zero by 2050. Restrictions on GHG emissions by the shipping industry are inevitable following an EU Parliament vote to include the industry in emissions trading rules. The additional costs may be included in shipping rates. That was the case for sulfur emission restrictions where bunker-excluded rates for low-sulfur fuel reached $710 / TEU in Q2 compared to $650 per TEU on average for 2015 through 2019 for high sulfur fuel, i.e. profits actually increased. While some of the initiative’s members have automation-based routes to restructuring their supply chains to cut emissions, such as Mercedes Benz and Nike, those operating in food and household products might not. Maersk may therefore build its share of shipments with Unilever and Danone to help mitigate their GHG footprint. Panjiva’s data shows Maersk handled 5,000 TEUs on U.S.-seaborne import routes for Danone in the 12 months to June 30 and 2,400 TEUs for Unilever. Both firms’ shipments have surged in Q2 due to COVID-19 related demand increases. Maersk may be able to attract volumes away from other container-lines providing services to the two firms, which were led by Hapag-Lloyd in the past year. By Hebei Longsheng Metals & Minerals Co,. Ltd. |
