AP Moller-Maersk elected Jim Hagemann as the new chairman, committed to automating its systems as the oil and shipping group steps up its drive to become more efficient and save costs at a time of low oil prices and declining freight rates.
Hagemann told Reuters: We transport goods in the physical world and that wont change as we wont start beaming things around the world. It is not about replacing the current product but about making it more efficient for the customer.
The container shipping industry has lagged some other sectors in bringing more of its processes online, and there is still a huge amount of paperwork slowing down the handling and tracking of containers. Added to that, hardly any two ships have the same IT systems.
US technology company IBM and Maersk are cooperating to create a digital way of managing and tracking shipping transactions using blockchain technology.
But the most crucial task for the incoming chairman, who was recently also proposed as head of the supervisory board of German engineering group Siemens, is to deliver on the restructuring plan set out by new group chief executive, Soren Skou, in September. This included bulking up the groups transport and logistics operations while seeking alliances or a separate listing for its capital intensive energy division.
Ane Maersk Mc-Kinney Uggla, chairman of AP Moller Holding, said: Hagemann is a man of the future, I firmly believe in that. I hope that technology will play a bigger role than it has played so far in our business.
In December 2016, Moodys downgraded Maersks credit rating to Baa2 from Baa1 with a negative outlook, following Standard & Poors cut to BB from BB+ with a negative outlook in November both close to the lowest investment grade levels. Below those levels, Maersks borrowing costs would rise.