On the wires: Maersk’s push to win new business via Damco smells of desperation, but it's in good company
“AP Møller Mærsk A/S – Initiates first phase of share buy-back program: As announced on 24 ...
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By Mike Wackett
Maersk Group forwarder Damco’s financial performance has lunged from bad to worse: the 3PL suffered a loss of $293m last year, compared with a $111m deficit in 2013, and in the process of its radical restructuring it has suffered significant declines in ocean and air freight volumes.
Sea freight volumes were down 6%, and air freight down 16%, indicating that the operation lost significant market share during the year. Only Damco’s supply chain management division, which tends to deal with longer ...
Comment on this article
Gert Hofhuis
February 26, 2015 at 7:06 pmAfter 8 years of annual restructuring and right sizing, surely there comes a time to make the tough decision? Perhaps a total senior management restructure is what is needed, or a fire sale is the other alternative. Every year a new excuse!
Rahul
May 28, 2015 at 12:00 pmStupid company. In 2012 MLOG (Former Maersk Logistics) had fought with Maersk Line and made profits. In 2014 MLINE fought hard with Maersk Logistics and made profit. The board thinks its a fit with each other model. In reality the Nominated cargo business gets eaten up by either Mline or Damco for margins.
Then in each year somebody gets fired. How about firing danes and hiring more smarter people to do business?
Samuel
May 30, 2015 at 10:55 pmIt’s sadly true that Damco and the Maersk Group eagerly buy up whatever hair-brained scheme Mckinsey and other consulting groups sell to them (OneDamco)–and then those same groups turn right around and sell them the opposite schemes 2 years later–all promising to fix the same issues. This has been going on for 8 years now. Time to let it rest and admit defeat.