May 17, 2020

Maersk warns of rough times ahead despite profit rise

what is freight
Freddie Pierce
2 min
Net profit rose by 42 percent for Maersk in 2012
Shipping giant A.P Moller-Maersk posted a rise in net profits today (Friday), thanks to higher freight rates and cost-reduction schemes. The company po...

Shipping giant A.P Moller-Maersk posted a rise in net profits today (Friday), thanks to higher freight rates and cost-reduction schemes.

The company posted a rise in its fourth quarter earnings from the forecasted profit of 4.51 billion Danish kroner to 5.54 billion kroner. Overall, full-year net profit for the Maersk Group, the world’s largest container shipping company by revenue, rose 42 percent to 21.7 billion kroner from 15.2 kroner a year earlier.

Despite these positive results, the company expects its performance to be under pressure in 2013, due to lower production volumes in its oil business and reduced ownership of Danish oil assets, in addition to a glut in industry capacity and modest growth prospects.

In a conference call, the company predicted only “modest” (four to five percent) growth in global container demand for the coming year, as the trade outlook for westbound shipments from Asia to Europe is “bleak.” The company warned that “without significant capacity adjustments, the container shipping market is most likely to see a continued downward pressure on freight rates” this year.

In 2012, freight rates recovered some of the ground lost in 2011, but lost steam in the fourth quarter as oversupply and sluggish growth in the world's largest consumer markets diminished world trade.

“We are satisfied with our result for the year. After a difficult start, Maersk Line improved its performance and the Group achieved a result above last year’s, both in terms of net result and in underlying performance”, said Group CEO Nils Andersen in response to the 2012 financial results.

(Source: Wall Street Journal)

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Jun 24, 2021

Kuehne+Nagel cuts carbon footprint by 70% for Honda China

2 min
Road-to-rail logistics solution will reduce carbon emissions at the automaker by 70%, stripping 16,000 tonnes of CO2 from its supply chain

Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel

The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018. 

KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management. 

"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive. 

After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total. 

"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”

Kuehne+Nagel’s Net Zero Carbon programme 

Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners. 

Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”. 

As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030. 

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