Investor Presentaiton
41
A.P. Moller-Maersk Annual Report 2020
Directors' Report
Performance 2020 Ocean
FROM OUR BUSINESS MODEL
Our industry is a significant contributor
to global greenhouse gas emissions, and
through investment and collaboration,
we will decarbonise our operations.
net zero CO
MAERSK
Key initiatives
2020
Sustained operational resilience
Simplification of the organisation
Maersk Spot, a preferred choice
да
Ocean continued to deliver on its strategy with a rigorous
focus on servicing customers and limit the negative impact
from disruptions to their supply chains during the COVID-19
outbreak. Q2 saw a significant decrease in volumes and major
changes to the fleet were applied to adjust capacity to the
impact of global lockdown of economies. From Q3, unex-
pected pick-up in demand on some routes resulted in strong
pricing dynamics, with bottlenecks and space access com-
bined with vessel and equipment shortages becoming a chal-
lenge for most customers. Additional flexibility was provided,
focusing on long-term customers to cater for additional
demand, despite the strong short-term freight rate market,
while adding extra capacity to accommodate volumes.
In H2, strategic changes were announced in order to further
enhance the customer experience and end-to-end service
delivery. Safmarine will no longer be marketed as a separate
brand, as A.P. Moller - Maersk and Safmarine have converged,
both focusing on building a customer-centric culture with
digital interactions. While continuing to meet customers as
two separate brands with a differentiated service model, the
front offices of A.P. Moller - Maersk and Hamburg Süd will
come closer together into more customer-centric teams.
Maersk Spot, launched in Q2 2019 offering transparent
prices and loading guarantee, gained significant momen-
tum in 2020, growing its share of loaded short-term vol-
umes consistently. On a four-week average basis, Maersk
Spot volumes at year-end were 51% of the total loaded
short-term volumes under A.P. Moller-Maersk brand (excl.
Sealand and Hamburg Süd).
efficiency to 40.9 g/TEU*NM (41.2 g/TEU*NM)
compared to 2019.
Unit cost at fixed bunker increased by 1.0% to
1,973 USD/FFE (1,954 USD/FFE), driven by lower
volumes, somewhat offset by improved bunker
efficiency and development in foreign exchange
rates. Adjusting for the positive impact from the
developments in foreign exchange rates, the unit
cost at fixed bunker increased by 1.6%.
The average nominal capacity of 4,081k TEU
decreased by 1.2% due to agile capacity develop-
ment executed to meet mid-year global demand
downturn, which has since increased with demand
surges towards the end of the year. There were
no vessels in the newbuilding programme at the
end of Q4, and the fleet consisted of 301 owned
and 405 chartered vessels, of which 99k TEU or
2.4% of the fleet were idle (12 vessels), mainly due
to repairs, scrubbers retrofitting, and capacity
adjustments.
Fleet overview, year-end
2020
TEU
2019
Number of vessels
2020
2019
Own container vessels
0 - 2,999 TEU
3,000
106,222
116,165
53
58
4,699 TEU
365,351
365,351
90
90
4,700
7,999 TEU
311,230
344,844
50
55
8,000 - 11,499 TEU
11,500
408,774
428,054
50
48
14,999 TEU
122,123
69,018
6
6
15,000 17,499 TEU
292,282
292,282
19
19
> 17,500 TEU
Total
593,048
593,048
31
31
2,199,030
2,208,762
301
307
Chartered container vessels
0 - 2,999 TEU
388,524
381,688
188
179
3,000 - 4,699 TEU
4,700
311,179
286,067
77
71
7,999 TEU
408,118
410,119
68
69
8,000 11,499 TEU
523,677
544,568
51
59
11,500 14,999 TEU
214,387
293,656
21
23
Total
1,845,885
1,916,098
405
401
Total fleet
4,044,915
4,124,860
706
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