General Electric and Maersk sign shipping deal
General Electric's (GE) Marine Solutions has signed a deal to provide electric systems to global shipping giant Maersk Line. The deal is another indicator that GE is fully committing to return to its industrial roots as the company scraps the final parts of GE Capital.
While the global container shipping industry, which Alix Partners views as a $173 billion global market by revenue, is currently facing a cooldown, there are still many opportunities. The industry is still building fleet volumes, which are expected to grow by 4.6 percent in 2016 and 4.7 percent in 2017, according to this report.
Tim Schweikert, GE's CEO of its Marine Solutions unit, said: "Having Maersk as a partner, our entry into the container ship industry could not be more impactful. GE is continuously investing and developing solutions for the marine industry, and with our PTO/PTI technology, we are reinforcing our intention of driving the industry forward."
Maersk Line’s sales have also shown signs of a cooldown, booking sales of $5 billion in the first quarter, down 20 percent year over year, primarily due to a 26 percent decline in average freight rates, based on its May financial statements.
SOURCE: [ The Real Money ]