Further to my research earlier on Maersk's stand on their shipping line business, I try to find out a little more. And to my surprise, the same CEO Mr Andersen, who vowed not to invest in the shipping line anymore (see previous posting), is the same guy who is committed to make the shipping line 'top priority' in Maersk Group just 2 years ago (see article below).
The flipflop in a short 2 years time makes me more convince that the fate of the shipping line could be questionable. I urge Rickmers management to seriously look into this, so that it will not be caught in surprise.
Publication date: 11/6/2007
New Maersk chief makes shipping line ′top priority′
Improving returns in its struggling container shipping business is the number one priority for AP Møller-Maersk, the Danish group's first externally appointed chief executive has said on his first day in the job.
Nils Smedegaard Andersen, who came to Maersk from Carlsberg, the brewer, said a team was developing plans to increase returns at the Maersk Line container shipping business, which has been losing market share in spite of being the world's largest container line and has had to slash its rates. Mr Andersen was speaking only hours after taking office yesterday morning. However, he admitted Maersk Line faced complex problems.
"Usually when you have a problem that cannot be fixed in a few months, it's because it's a composite problem," he said. "What we have to do is really focus on holistic solutions."
Mr Andersen comes to Maersk after a management shake-up in June saw two senior executives - Tommy Thomsen and Knud Stubkjaer - pushed out and Jess Søderberg, chief executive, advance his retirement by two years. The changes were seen as a response by Michael Prem Rasmussen, chairman, to the problems facing Maersk Line since it botched the integration of computer systems with P&O Nedlloyd, the former world number three container line, which it took over in 2005.
Mr Andersen is only the fourth chief executive in Maersk's 103-year history. Before Mr Søderberg, Arnold Peter Møller ran the company from 1904 until 1965 and Maersk McKinney-Møller, his son, ran the company until Mr Søderberg's appointment in 1993. Mr McKinney-Møller, 94, still has a major influence over the company.
The container shipping business is not growing fast enough and not making enough money, according to Mr Andersen. "I think improving returns at this point is the first priority" followed by, mid-term, creating more growth in the business, he said. The container division would have to concentrate on finding the right routes to operate and the right pricing mechanisms, he added.
"We just have to get better and better all the time," he said. "There's no way you can take a quick decision and everything is good. This is about improving the way we work day-to-day." Losses at the container division depressed last year's earnings at the group, which produced pre-tax profits for 2006 of $6.05bn on $44.5bn revenue.
Source: msnbc.msn.com
http://www.freshplaza.com/news_detail.asp?id=10576
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