AP Moller-Maersk goes far and beyond to accommodate all the customers’ needs and manage shipping at all the corners of the world.
In the light of events, Maersk agreed to buy Pilot Freight Services LLC, costing $1.68 billion and eventually upping its road transport business. Announced on Wednesday, the deal coincides with the planned 2022 profit, which is well below the analysts’ estimates. Maersk said it expects the ‘normalization’ in the second half of the year after a robust first half.
With the profit gained in 2021, Maersk is willing to expand its business. Maersk and its associates have been using this money to amplify, diversify and advance in areas such as air freight and logistics.
“We are guiding in an environment where we are coming out of a pandemic, and we don’t have much experience with that, to be honest,” Chief Executive Officer Soren Skoso said in an interview with Bloomberg TV. The result will be “very similar to the one we had last year, which was record-breaking in every dimension.”
Maersk observes the expansion of the global container market by 2% to 4% this year. But it is still “subject to high uncertainties related to the current congestion, network disruptions and demand patterns,” said Maersk. Therefore, it sought clear sights on land-based logistics, which has the potential for growth and more profit in the long run.
Originated in 1970, the US-based Pilot freight provides exclusive transport and logistics services. It specializes in big and bulky cargo, which would reduce the needless handouts and aid in quick high-end transportation. In addition, it offers greater scope to create new opportunities for the company in cross-border logistics.
In July 2021, Pilot’s acquisition of American Linehaul Corporation also helped secure the leading marketing expertise in LTL facilitated capabilities and the middle mile. With the ample cash and the extensive connections with other major companies, Maersk soars high in the pursuit of expanding now on land as well.
“Our customers have asked us to support their domestic delivery ambitions by investing in middle and last-mile service models. This acquisition will add important expertise and supply chain capacity to customers who faced capacity constraints and multiple handoffs with providers in that space. We can, in time, help them install stronger, more integrated supply chains with better visibility and consumer experience outcomes. We look forward to welcoming the Pilot Team aboard in our customer journey.”, said the Regional Managing Director at Maersk North America, Narin Phol.
Also Watch What Its Like To Work As A Maritime Pilot