Maersk sees African trade outpacing mature markets

  


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31 Oct 2010

maerks_logo_only.gifThe Danish shipper and South African subsidiary Safmarine want to retain their historically strong market share in Sub-Saharan Africa, though annual African container trade volume barely matches the weekly throughput on the world's biggest trade


routes between Asia and Europe. The world's biggest container shipping
company, Maersk Line, expects volume on African routes to grow faster
than shipping in mature markets, though underperform other emerging
markets such as Brazil and China.

 Maersk Line, a unit of Danish shipping and oil group A.P.
Moller-Maersk, operates about 100 of its 550-vessel fleet in African
trades and has a bigger slice of the market there than its 15% share of
global boxship capacity. The Danish shipper and South African
subsidiary Safmarine want to retain their historically strong market
share in Sub-Saharan Africa, though annual African container trade
volume barely matches the weekly throughput on the world's biggest
trade routes between Asia and Europe.

The Maersk group's port arm, APM Terminals, this month said it signed a
deal to run the port of Monrovia in Liberia for 25 years, which it said
reflected its positive view of the region's potential in freight. And
Maersk Line's chief executive said last month that it was looking
increasingly to serve Africa and Latin America with ships sailing
directly from Asia. Boenaes said Maersk Line needed smaller vessels to
serve African ports which are shallower than those in Asia and Europe.
Maersk will take delivery of 22 small and mid-size container ships to
replace time charters before 2013. Maersk expects boxship exports from
Africa to continue to lag imports until value-boosting processing
industries emerge in Sub-Saharan Africa outside South Africa and Kenya.


"We don't expect that to happen until the longer term," Boenaes said.
"I'll be surprised if Africa does not continue to outpace non-emerging
markets, though it's coming off a very low starting point," Anders
Boenaes, Maersk Line's vice-president for Africa trades, told Reuters
in an interview in Copenhagen. Containerised imports, driven by
consumer goods and machinery, continue to top exports by three to one,
he said. Boxed goods imports to Africa are largely funded by Africans
wiring money back from Europe, the Middle East and elsewhere, which has
helped sustain demand in the past despite the many armed conflicts that
have ravaged the continent. Improved political stability and rule of
law are helping boost container imports after several armed conflicts
in Africa ended in recent years, Boenaes said, adding political unrest
continues to have a dramatic impact on demand. "We still see the
biggest slump in volumes prior to elections. Nobody wants to have a
large stock of something that may be looted if events turn into
unrest," Boenaes said.



Source: Reuters

Sources:  www.Shipid.com

Maersk Line is one of the leading liner shipping companies in the world, serving customers all over the globe.

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