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Maersk to integrate Damco’s supply chain services directly into ocean freight

Reshuffle aims at capturing more of a shipper’s end-to-end business.

Maersk (NASDAQ OMX: MAERB) said it plans to fold supply chain services offered from its Damco subsidiary directly into its ocean freight unit. The shipping giant says the move is to “ensure an improved customer experience with fewer touchpoints and a more comprehensive service offering.”

The move allows the two services, logistics and ocean freight, to be sold under one brand, instead of being separately marketed. The move also shuffles Damco’s chief executive Klaus Rud Sejling to head of Maersk’s logistics and services products, reporting to chief commercial officer Vincent Clerc.

Maersk’s chief executive Soren Skou said the move aims to make Maersk a one-stop shop for both supply chain and ocean freight. With container shipping a commodity service, handling entire supply chains offers a chance for Maersk to capture more margin.

“This integration marks a big milestone on Maersk’s current growth journey towards operating as one integrated company,” Skou said. “We are in a strong position to deliver solutions that meet our customers end-to-end supply chain management needs, thereby tapping into markets covering the whole journey from producer to consumer by building on our business strengths.”

Damco’s freight forwarding business, which serves customers requiring air freight or multi-carrier options in ocean freight, will continue to be run as a separate and independent business under the Damco brand. Saskia Groen In’t Woud, chief operating officer at Damco, will be the chief executive of Damco.

Maersk also said it would fold its regional carrier brands, including MCC Transport, Sealand and Seago Line under the SeaLand brand.

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Michael Angell, Bulk and Intermodal Editor

Michael Angell covers maritime, intermodal and related topics for FreightWaves. His interest in transportation stretches back several generations. One great-grandfather was a dray horseman along the New York waterfront and another was a railway engineer in Texas. More recently, Michael has written about the shipping industry for TradeWinds, energy markets for Oil Price Information Service, and general business topics for FactSet Mergerstat and Investor's Business Daily. When he is not stuck in the office, he enjoys tours of ports, terminals, and railyards.
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