Name:

• A.P. Moller – Maersk A/S

Type:

• Publicly traded family company

Sector:

• Transportation and logistics

Business Overview

 

Proposition:

• A global leader in integrated container logistics and supply chain services, operating in over 130 countries and employing more than 80,000 people. The company’s proposition is to provide end-to-end solutions that meet customer needs from one end of the supply chain to the other, leveraging digital technologies and innovation

Business health:

• The company reported a revenue of $39.7 billion and a profit of $2.9 billion in 2022, an increase of 23% and 44% respectively from 20212. The company’s financial performance was driven by strong demand for its services, especially in ocean and logistics segments, as well as improved operational efficiency and cost control2. The company also achieved its net zero emission targets for its own operations by 2022, ahead of its original plan of 2030.

Company structure:

• The company is organized into four business segments: Ocean, Logistics & Services, Terminals & Towage, and Manufacturing & Others. The Ocean segment is the largest in terms of revenue and profit, accounting for 75% and 86% respectively in 2022. The Logistics & Services segment provides value-added services such as warehousing, distribution, customs clearance, trade finance, and e-commerce solutions. The Terminals & Towage segment operates and invests in port terminals and towage services around the world2. The Manufacturing & Others segment includes businesses such as container production, oil drilling, and ship repair.

Highlights from last annual report (2022):

• Some of the key highlights from the company’s last annual report are2:
  • The company delivered a strong financial performance in 2022, with revenue growth of 23%, EBITDA margin of 25.8%, and return on invested capital of 15.5%.
  • The company accelerated its net zero emission targets to 2040 from 2050, and set ambitious targets for 2030 for a range of green product offerings, such as carbon-neutral shipping solutions, renewable energy sourcing, and circular economy practices.
  • The company continued to invest in digital transformation and innovation, launching new platforms and tools such as Maersk Flow, Maersk Spot, Maersk ECO Delivery, and Maersk Emissions Dashboard.
  • The company strengthened its customer relationships and loyalty, achieving a Net Promoter Score of 38 in 2022, an increase of 5 points from 2021.
  • The company maintained its resilience and agility amid the COVID-19 pandemic, ensuring the safety and well-being of its employees and customers, as well as the continuity and reliability of its services.

Product & services roadmap:

• The company’s product & services roadmap is based on its vision to become the global integrator of container logistics, offering customers seamless and simple solutions across the supply chain. Some of the key initiatives in the roadmap are
  • Expanding customer base geographically through new services such as Maersk E-Commerce Logistics, which targets the U.S. market with end-to-end e-commerce fulfillment solutions.
  • Developing strategic alliances and joint ventures with other players in the industry to enhance its capabilities and reach, such as the partnership with IBM to create TradeLens, a blockchain-based platform for global trade digitization.
  • Leveraging technological innovations and better equipment & tools to improve its efficiency and sustainability, such as investing in methanol-powered vessels that can run on carbon-neutral fuel sources.
  • Diversifying its portfolio of services to cater to specific industry and market requirements, such as offering cold chain solutions for perishable goods, or providing lead logistics products such as supply chain management services.

Target Audience

• Topline: The target audience of Maersk consists of companies that need transportation and logistical services across various industries such as retail, automotive, food and beverage, energy, chemicals, and more. The target audience can be segmented by demographic factors such as size (small, medium, large), location (domestic, regional, global), or sector (consumer goods, industrial goods, services); by geographic factors such as origin (Asia, Europe, Americas, Africa); or by behavioral factors such as needs (speed, reliability, cost-effectiveness, sustainability), preferences (digital, personalized, flexible), or loyalty (key clients, local forwarders, direct sales). Some of the largest customers of Maersk include PUMA, Disney, Microsoft, Amazon, H&M, and more.
• Competitive review:

Company Name	Sector	Proposition	Financials	Services
Maersk	Transportation and logistics	A global leader in integrated container logistics and supply chain services, operating in over 130 countries and employing more than 80,000 people. The company’s proposition is to provide end-to-end solutions that meet customer needs from one end of the supply chain to the other, leveraging digital technologies and innovation.	Revenue: $39.7 billion, Profit: $2.9 billion (2022)	Ocean and inland transportation, supply chain management, warehousing and distribution, customs clearance, trade finance, insurance, and e-commerce solutions
FedEx	Transportation and logistics	A global leader in express delivery, e-commerce, and freight forwarding, offering fast and reliable solutions for businesses of all sizes	Revenue: $92.11 billion, Profit: $4.57 billion (2022)	Express delivery, ground delivery, freight forwarding, supply chain management, customs brokerage, trade finance, e-commerce solutions
DHL	Transportation and logistics	A global market leader in international express, overland transport, air freight, ocean freight and contract logistics, offering customized solutions for various industries	Revenue: $101.7 billion, Profit: $4.8 billion (2022)	Express delivery, overland transport, air freight, ocean freight, contract logistics, supply chain management, customs clearance, trade finance, e-commerce solutions
XPO Logistics	Transportation and logistics	A leading provider of transportation and logistics services in North America and Europe, offering a range of solutions for diverse industries	Revenue: $12.81 billion, Profit: $0.59 billion (2022)	Truckload transportation, less-than-truckload transportation, intermodal transportation, last mile delivery, freight forwarding, freight brokerage, contract logistics, supply chain management
Nippon Express	Transportation and logistics	A global logistics company with a network of over 700 locations in more than 40 countries, offering integrated solutions for various industries	Revenue: $19.9 billion, Profit: $0.45 billion (2021)	Air freight, ocean freight, rail freight, road freight, warehousing and distribution, supply chain management, customs clearance
UPS	Transportation and logistics	A global leader in package delivery and supply chain solutions, serving customers in more than 220 countries and territories	Revenue: $97.29 billion, Profit: $4.44 billion (2022)	Package delivery, freight forwarding, supply chain management, customs brokerage, trade finance, e-commerce solutions
Yusen Logistics	Transportation and logistics	A comprehensive global logistics provider with a network of over 550 locations in more than 40 countries, offering customized solutions for various industries	Revenue: $5.3 billion (2021)	Air freight, ocean freight, road freight, rail freight, contract logistics, supply chain management, customs clearance
JD Logistics	Transportation and logistics	A leading e-commerce logistics platform in China with a nationwide network of over 1,000 warehouses and 200 cloud warehouses	Revenue: $15.5 billion (2021)	E-commerce fulfillment, express delivery, cold chain delivery, freight forwarding, warehousing and distribution, supply chain management, customs clearance
DB Schenker	Transportation and logistics	A global leader in land transport, air freight, ocean freight and contract logistics, offering integrated solutions for various industries	Revenue: $19.9 billion (2020)	Land transport, air freight, ocean freight, contract logistics, supply chain management, customs clearance, trade finance

Summary of findings:

• Based on the competitive review table, some of the key findings are:
  • Maersk is one of the largest and most diversified players in the transportation and logistics sector, with a strong presence in ocean and inland transportation, as well as value-added services such as supply chain management and e-commerce solutions.
  • Maersk faces competition from other global giants such as FedEx, DHL, UPS, and DB Schenker, which offer similar or complementary services in express delivery, air freight, ocean freight, and contract logistics. These competitors have higher revenues and profits than Maersk, but also higher operating costs and lower margins.
  • Maersk also competes with regional and local players such as XPO Logistics, Nippon Express, Yusen Logistics, and JD Logistics, which have lower revenues and profits than Maersk, but also lower operating costs and higher margins. These competitors have more focused and specialized offerings in certain markets or segments, such as e-commerce fulfillment, cold chain delivery, or intermodal transportation.
  • Maersk has a competitive advantage in its integrated and digital approach to container logistics and supply chain services, which enables it to offer customers seamless and simple solutions across the supply chain. Maersk also has a competitive edge in its sustainability and innovation initiatives, which aim to reduce its environmental impact and enhance its customer experience.