MAERSK SETS COURSE FOR COST-CUTTING PROGRAMME AFTER UNVEILING FIRST QUARTER LOSSES

Maersk Line will cull unprofitable services, cut capacity and reduce feedering in an urgent bid to stem losses caused by a toxic mix of low freight rates and soaring fuel costs.

The refocused Maersk Group recorded an net loss of $239m in the first quarter across its Ocean, Logistics & Services, Terminals & Towage and Manufacturing & Others business divisions.

Chief executive Soren Skou said the result was "unsatisfactory" and that "a number of short-term initiatives are being implemented to improve profitability".  For Maersk Line, chief operating officer Soren Toft added: "We have put a number of plans in place. We will implement a number of capacity reductions over the next two quarters on trades that are not yielding the desired results."

He advised that the carrier would also reduce the amount of feedering and, instead, endeavor to channel cargo to directly served ports, while further cost-saving would involve network optimisation and empty container positioning.