October 18, 2020 General 1,737

Maersk terminates agreement with DB Schenkerpermalink

Maersk has terminated its agreement with DB Schenker after the German company attempted to hijack customers from Damco. DB Schenker confirms the break up to ShippingWatch but does not link it to the offer sent to Damco’s customers. A German media reports that CEO Søren Skou was personally involved in the decision to terminate the agreement with DB Schenker.

Below are the notable comments on the story.

Beat Cane

I agree with Jens Bjorn Andersen assessment that this development is a ‘paradigm shift’. Nobody to blame for that but just another ‘logical’ development, same as the acceleration of digitalization. Verticalization in the container shipping industry has been on the agenda for far more than 10 years already and seems to start ‘materializing’ now. While there will always be a need for freight forwarders/NVOCC’s (‘Complex shipments ‘ and ‘Special’ cargo, DGD cargo, OOG, BBK) I believe the role and value proposition of the FWD/NVOCC to their customers may look very different in future than it does now.

Hans J. Willam

I don’t understand why Maersk has “overreacted” regarding DBSchenker assuring Damco FCL customers not to worry. Damco is/was a NVOCC. DBSchenker is a NVOCC. But Maersk has decided to discontinue the NVOCC activity of Damco. Let’s be clear: The new Maersk is a VOCC (used to be called Maersk Line), a Freight Forwarder (incl. Airfreight) and a Solutions Provider (Buyer’s Consolidator/SCM). Thus Maersk is “not a NVOCC”! What’s even more interesting: Maersk has already hired a no. of Freight Forwarding Professionals. Thus it is clear that Maersk will go after the BCO business which is “today largely controlled by the NVOCC customers of Maersk” (i.e. the Top 20 NVOCC’s). Any which way: Maersk will not/cannot support their NVOCC customers much longer. Possibly Maersk will target the customers of DBSchenker first. Let the BCO’s decide who they want to work with, particularly if the BCO’s are looking for a neutral “consolidator”. Interesting times ahead.

Diego Barriga

Interesting development. I wonder how many more “breakups” are really possible. There is only so much capacity and most of it controlled by the top 6 carriers. Top forwarders must be careful not to over commit with one line vs. another (and this move points in that direction). Could the same happen with CMA logistics and CMA who walk away from their top NVO partners as a result of new carrier strategies? Carrier forwarder hybrids could trigger changes in the way the industry does things.

As a freight forwarder, I love what DB Schenker did, we shouldn’t lose our ground without resisting and howsoever possible we should fight the ocean carriers and limit their role to sailing boats.

Earlier: DB Schenker to AP Møller-Mærsk: Welcome to the jungle 11.SEP.20

September 11, 2020 General 1,702

DB Schenker to AP Møller-Mærsk: Welcome to the junglepermalink

Alesssandro: It didn’t take long for feedback in my marketplace to explode at the end of last week, when I went after the status of relations between Germany’s DB Schenker and Denmark’s AP Møller-Mærsk as the former, shamelessly, tries to poach Damco customers in what appears to be the epitome of a strained forwarder-carrier connection.

When these carriers are off waters into a 3PL territory, they are just like everyone else. they can’t keep their boat afloat on the land period.

Alesssandro: please spell it out for me: FF/logistics is a people business (I think we agree), they are hiring some of the best from the FF industry (I think we agree), and still they cannot compete? While it remains to be seen to what extent they truly want to compete with the major GLSPs, and I get the capacity-best-quotes-from-3rd-party issue – what else is there not to like? Carriers are carriers and aren’t smart enough to be as good as FFs doesn’t sound a very compelling argument to me…

What I have figured, steamship carriers are ‘genetically’ too much bureaucratic, and with their freight forwarding divisions, I am sure, their DNA is ultimately inherited by them, also freight forwarders are willing to get their hands dirty where they do not, handling SMEs etc .. they definitely can compete, I wasn’t implying that, but I just don’t see the ‘devotion, and dedication of a freight forwarder in them’.

Also it ain’t gonna help them IMO, because all carriers now have their FF divisions, so they would end up competing with each other, just like they compete in the box ship market. I should be wrong though when suggesting it, but I still don’t see it happening; on the paper, It just looks too good, and their FF divisions should knock the ball out of the park.

Alesssandro: …so APMM changing to change nothing at all?

APMM isn’t like any other steamship line, they are ‘PRO’, however it all boils down to basics, theoretically, Nestle or Coke, should have retail outlets too, rather than 3rd party distributors and retailers, to drive their bottomline as high as they can. But that scheme quickly falls apart, when you consider the operational costs., even apart from operational costs, it’s a huge administrational effort, to make retail sales at your own being a large producer of the goods.

Latest: Maersk terminates agreement with DB Schenker 18.OCT.20