Maersk seeks $500 million cost reduction

Maersk seeks $500 million cost reduction    The A.P. Moller – Maersk Group will seek to eliminate another $500 million in costs following a program the company said delivered $2 billion in savings in 2009.
   'We are not cutting just to survive but to become more competitive,” said Nils Andersen, the group’s chief executive officer, in an interview in its house magazine, Maersk Post. “The idea is to go for smaller items and areas. Elimination of or turnaround in less profitable parts of businesses also fall within this scope.”

Andersen

   Andersen predicts a “demanding year” in shipping, but contends “Maersk Line has the potential to make a far better profit per container transported than its competitors. This means that we should be able to reach a reasonable result even in the tough circumstances that we will be facing this year.'
   In a note to employees, Andersen talks about the “value of the human touch” and spending with customers.
   “Just to give you one example of this: I talked to a group of large Safmarine customers and got a consistent and interesting message from them. They preferred Safmarine to other carriers primarily because of better relationships with employees with long tenure in their present position,” he said.