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Maersk

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Maersk:

The news articles below document recent changes in the shipping company Maersk's business strategies and internal organization. Featured in the latter article is the retirement of the former CEO- who last year crafted a grand new strategy for Maersk including ordering twenty new ships and competing in the Asia-Europe market- and the accession of his replacement. The article points out that the company is in good hands due to the fact that the new CEO has spent his entire adult life working for it and so is well-equipped to deal with new challenges to business, such as a decrease in the demand for tankers that is promoting more cooperation among leaders of the tanker industry. Despite preparing to open new lines, Maersk lost almost a third of a billion dollars in the third quarter of 2011 (versus a profit of $1 billion the year earlier).

Maersk however enjoys an economy of scale by its industry-leading 18,000 TEU capacity tankers which should insulate it from excessive consolidation. These twenty ships are set to sail in 2013 and are being built by Daewoo Shipbuilding of South Korea. They are all container ships, which compared to the bulk shipping segment of marine transportation, have a more reliable future due to being less fragmented.

Sources:

Business: The Danish Armada; very big ships. (2011, Feb 26). The Economist, 398(8722), 73-73. Retrieved from http://search.proquest.com/docview/854024513?accountid=10353

Maersk's New Man At the Top; Soren Skou, a 30-year veteran of the company, is well-placed to take over after Eivind Kolding's sudden departure. (December 26, 2011 Monday ). Journal of Commerce Online, Retrieved from http://198.189.53.33:2052/hottopics/lnacademic