Maersk describes focus on fast-growing trades

Maersk describes focus on fast-growing trades    A.P. Moller – Maersk said it is focused on increasing its business in fast growing trades between China and regions such as South America and West Africa.
   An article in the most recent issue of the company’s in-house magazine Maersk Post quoted Lars Reno Jakobsen, head of network and product at Maersk Line, as saying the Asia/Europe trade is still dominant, but “what is changing is that the growth out of China to markets such as Latin America and Africa increasingly will outpace the growth rates to Europe.
   “Therefore, we are very focused on increasing our volumes and market share in these new growth market trades, by for instance introducing tailor-made capacity for these markets such as SAMMAX for South America, and WAFMAX for West Africa,' Jakobsen said.

Jakobsen

   'We have been present in these growth markets for many years, and we adjust continuously according to developments in demand,' he said.
   A chart accompanying the article showed trade from Africa to Asia increased 28.6 percent from 2008 to 2010 and was flat in the other direction, while South America-to-Asia trade increased 5.8 percent, and 5.9 percent in the other direction.
   In the same period Asia-to-Europe trade was flat and trade from Europe to Asia was up 7.1 percent; trade from Asia to North America was down 4.6 percent, and off 2.9 percent from America to Asia; Europe to America fell 10.7 percent and America to Europe fell 20.7 percent.
   The article also quoted Pyers Tucker, head of strategy at its Damco freight-forwarding subsidiary, as saying it is unlikely growth rates of exports from China to the United States and Europe will continue at the same levels seen over the last 10 to 15 years.
   'The rapid rate of outsourcing to China by western companies appears to be slowing because of increasing cost of Chinese labor and cost of fuel. Companies are looking at sourcing alternatives, either in other countries in Asia or nearer to the countries where products will be consumed,' Tucker said.
   He noted growth in near-sourcing, for example by American companies in Mexico, Latin America or domestically, or Asian manufacturers sourcing from a country in the same region. Three main incentives for near-sourcing are high fuel prices, protectionist policies and environment issues, he said.
   He also said companies are diversifying sourcing, and buying products from several, instead of one country, in order to get the better service and product at lower cost and to reduce the risk of supply chain disruption.
   At the same time he noted there is increasing demand among consumers in the developing world.
   'Consumption in China is growing rapidly, and India is ready to take off. Even in African countries such as Nigeria, Ghana, Kenya and South Africa, we see increasing consumption,' Tucker said.