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Maersk Container Shipping Economics and Pricing Strategies

Economics of the Container Shipping


The shipping industry is accounted as one of the largest industries to operate in the current times (Taiyou Research, 2013). The successful growth in the industry is dependent on many factors. According to the report of AT Kearney (2012), the success in the future will remain with the carrier that will be able to offer effective, efficient, flexible, and convenient business service to customers. For serving the customer in the competitive and consolidating industry while retaining the profitability, the companies are striving to reassess the economics of the shipping vessels with respect to demand and supply. Understanding of these basic economic principles is to play a pivotal role in the defining future customer oriented successful strategy.

In a similar context, the underlying report will shed light on the basic demand and supply and related factors for the shipping industry. The report will also make recommendations with respect to the pricing strategies of Maersk.

Maersk Container Shipping Economics and Pricing Strategies

Trend of Market for Shipping Containers in Last Five Years and Future Prospects

The global merchandise trade has shown following trend over the past years:

Maersk Container Shipping Economics and Pricing Strategies

(AT Kearney, 2012)

Despite this growth of the world trade, the shipping industry remained under pressure due to oversupply. According to the DSF (2013) report, year of 2012 continues to expand crises in the shipping. Since 2008, the fleet has expanded by 45%, although demand growth remained at only 15%. The similar condition has left the industry with the oversupply of vessels, yard capacity, and container and consequently has taken down the earnings. Despite this oversupply, the industry is continuing the order books. This is also putting downside pressure on the asset value of a vessel in the long term, further, are expected to the increase the value of scrap on the industry (DSF, 2013).

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