5 or 6 Groups to Survive Container Shipping Industry – Maersk Chief Predicts

0
Image Courtesy: Maersk

 

CEO of AP Moller Maersk went on record to state that in the future he predicts only five or six survivors in the container shipping industry. Mr. Soren Skou told the Financial Times that he sees more and more companies signing deals and soon, majority of these other companies would either be acquired or go bankrupt.

A couple of years ago there were twenty players in this industry but in the past two years, eight such shipping lines were acquired or went bankrupt. Soren said, “My prediction would be that the industry would consolidate further. A decade from now, we would be more in the five to six range,”

In addition to this, Mr. Skou went on to speak about the recent cyber attack that took down all of Maersk’s IT systems in June, adding, “I don’t think if I’d been asked before these attacks [could a hacker take down all our IT systems in 24 hours] I would have agreed . . . We need to do whatever we can to defend ourselves against hacking. We need to make sure we can shut it down, isolate [the infected systems] and restore [the rest] quickly.”

The quarterly results will reveal how much these attacks cost the company. It is estimated to be anywhere between USD 50 million to USD 450 million.