Maersk CEO calls for an end to shipping subsidies

Group chief executive Soren Skou

Soren Skou, Maersk CEO, used Singapore Maritime Week to urge governments to stop subsidising shipping lines. He argues that subsidies cause overcapacity and unnecessary price reductions – and there is no strategic reason for governments to get involved.  He said companies were building ships that were “not needed, for companies which were not profitable and did not have a profitable business model”. He refrained from pointing the finger at any particular company, but as the WSJ points out, some Asian operators have indeed benefited from cheap state financing – among other perks.