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In New Article, ShipMag Italy Thinks Maersk+Damco Merger is a Big Deal

Check out the article published in Italy's ShipMag featuring Zeus and its Chairman Roger Crook. Below is the English translation of ShipMag's article.


Milan - With the merger of the shipping company Damco into its structure, Maersk is becoming a direct competitor for large global freight forwarders. This is the argument made by the authoritative voice of Roger Crook, CEO of Zeus Logics, a customs broker with over 30 years of experience.

From 2011 to 2015, Crook headed DHL Global Forwarding and its Road Freight division. He managed €15 billion in revenue, 45,000 employees, and operations in 200 countries.

"With this transaction, Maersk plans to provide 'end-to-end' logistics solutions. If successful, the Danish company is poised to reap huge advantages over its direct competitors, ”Crook told IHS Media.

“It may be too early to call Maersk the new Amazon of the supply chain, but it sure is on its way. It is time for other carriers to consider developing their own 'end-to-end' offerings if they want to compete with Maersk," said Crook.

"Typically, importers have to juggle a wide range of logistics companies - carriers, customs brokers, shippers - to ensure delivery of a single shipment. Thanks to Damco, Maersk can skip all these steps to provide a direct and integrated supply service, offers a full-service solution for its customers and a single point of contact to turn to without intermediaries,” Crook wrote.

"There is a very good chance that Maersk's new approach will significantly change market dynamics. For example, will Damco's current customers still be able to book with other carriers? Will they ever use services from Hapag Lloyd or MSC?", asks Crook.

Which gives the wake up call to the competitors of the Danish company: “I think Maersk will make a big profit if there is no vigorous response from the other carriers, because Maersk is the largest shipping group in the world and enjoys economies of scale that will make it possible to keep prices as low as possible. Damco also has a large portfolio of customers and is sure to use its good relationships to direct shipping contracts to Maersk. Freight forwarders also need to rethink their digital strategy in light of this market development."

"Considering Maersk’s current market dominance, coupled with its new offering, other logistics companies must aggressively innovate, and must do so quickly, if they are to survive and thrive," concludes Crook.

Read the article in ShipMag.


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