Freight forwarding will remain a separate entity; MCC, Sealand and Seago Line will go to market as one brand.
Damco’s freight-forwarding business will remain a separate entity and will continue to operate under the Damco brand. Maersk Line’s ocean product, Damco’s supply chain services and their respective value-added services will be combined as Maersk products and services.
“This is in line with the vision Maersk announced two years ago: Becoming the global integrator of container logistics, connecting and simplifying customers’ supply chains, ensuring you as our customer will have greater choice to platforms and services to best support your business needs,” Maersk said.
In a recent American Shipper article on the 3PL industry, Evan Armstrong, the president of the consulting firm Armstrong and Associates, said it makes sense for liner companies “to diversify out of being a commodity subcontracted player to try to be more of a solutions provider and really control the customer relationship, control more of the customer spend on logistics. It’s pretty hard to control a lot of the customer spend if you’re just an ocean carrier.”
Maersk said that its smaller container carriers MCC, Sealand and Seago Line will go to market under one
unified brand, Sealand – a Maersk Company, which will continue to
operate independently from Maersk.
Philip Damas, the head of Drewry Supply Chain Advisors, said, “Most large beneficial cargo owners will welcome a simplification of several affiliated ‘brands’ under Maersk ownership. Until now, when BCOs invite multiple-brand groups to bid for annual tenders, it is common that the same group makes several, separate bids and enters into separate service contracts with BCOs. Having separate ‘brands’ is seen by some carriers as a way to increase their sales and volumes, but it is complicating matters from the point of view of the customer.”
The announcement follows one made earlier this month that the company had changed the brand affiliation of its digital freight-forwarding product, Twill, from Damco to Maersk.
“Twill is Maersk’s future solution for small and medium-size enterprises and as such this does not change, and we will continue to develop Twill in line with our evolving customer needs,” said Maersk.
Changes that will take effect Jan. 1 are:
• The teams of Damco supply chain services and Maersk Line will be merged into an integrated, customer-focused organization with one management team, one sales force, one customer experience organization and one product organization.
• The Maersk front line will be given greater empowerment across products and services, with decision-making being moved closer to the customer.
• Damco’s freight-forwarding business, which serves customers requiring air freight and/or multi-carrier options in ocean freight, will run under the Damco brand, positioned as a standalone business.
“The world is becoming increasingly digital, which requires that we offer additional ways to connect,” Maersk said in the announcement. “We will continue to build and drive business through the personal relationships we have established. At the same time, we are adding more channels, digital and otherwise, that will enable freight forwarders and cargo owners to do business in ways that will best serve their customers.”
Maersk said the changes will benefits cargo owners and freight forwarders. “Cargo owners will have more ways to build and grow their business. They will also have more choices in terms of how, when and where to access the services and solutions that are right for their needs. Freight forwarders will remain an important portfolio to Maersk and we will continue to invest in our established relationships by empowering our front line.”
Answers to 27 frequently asked questions are provided on Maersk’s website.