Arab Today, arab today maersk optimistic about china business
Last Updated : GMT 18:23:43
Arab Today, arab today
Arab Today, arab today

Maersk optimistic about China business

Arab Today, arab today

Arab Today, arab today Maersk optimistic about China business

Danish shipping and oil giant Maersk Group
Beijing - XINHUA

Danish shipping and oil giant Maersk Group is optimistic about business prospects in China despite the global trade downturn and question marks over the impact of the recent weakening of the yuan, a company executive said on Friday.

The group's revenue in China has roughly doubled since 2009, which is the biggest origin market for its container shipping business, said Tim Smith, chairman of Maersk China and chief representative of Maersk Group North Asia, at a press briefing.

Business in the country is continuing to flourish, and Maersk sees opportunities as the economy moves toward consumption and service-led growth, as well as in the Belt and Road regional trade and infrastructure network proposed by China, Smith told reporters.

"China is big, and important, and that will continue to be the case in future," he said.

He also called the devaluation of the yuan an "overall a good thing."

"We don't know the trend yet but it will boost China's exports, and that's helpful to our business generally," he said.

China's exports in July slumped 8.9 percent year on year, compared with a 2.1-percent increase in June. Imports slipped 8.6 percent.

Smith described July as "not a typical month" due to the influence of commodity price fluctuations, and said he expected improvement in China's exports in the coming quarter helped by the yuan's depreciation.

Meanwhile, a weaker yuan will make imported goods more expensive and affect imports slightly, Smith explained.

However, he believes China's imports will continue to grow as the economy matures to become more reliant on consumption, which will drive up imports.

Maersk Line, the group's biggest business unit and the world's largest container shipping company, reported lower quarterly profits as shipping overcapacity dented freight rates, especially in Asia-Europe trade.

Maersk Line's underlying profits declined 8.1 percent year on year to 499 million U.S. dollars in Q2. But it outperformed the market by reducing costs and improving bunker efficiency, with return on invested capital reaching 10.1 percent.

The Maersk Group obtained 1.1 billion U.S. dollars of underlying profits in Q2, down 8.3 percent from a year earlier, according to financial results released Thursday.

Smith said the overall seaborne trade volume between Asia and Europe fell by an estimated 3 percent year on year in the first half, but shipping capacity rose a lot more than that.

Due to overcapacity, spot rates for Chinese outbound goods have halved since early 2012, but Maersk still considers China its key market, he said.

The group spends around 2 billion U.S. dollars each year buying equipment, ships and other facilities in China, and is looking for opportunities to partner with Chinese companies to participate in the Belt and Road Initiative.

Smith said the initiative was a "very smart strategy" by China, as it will benefit Chinese companies in construction and foreign trade sectors, and Maersk also sees a lot of interesting opportunities ahead.

The group could work with Chinese firms to carry cargo exported from China, or in building terminals in Africa, for example, he said.

That was one of the reasons the group moved its China chair back to the mainland from Hong Kong last month, because it wants to invest more resources in the initiative to engage in it, Smith noted.

The shift also aims to catch up with the economic transition of China from a manufacturing hub of labor-intensive, not very high value-ended products, said Jens Eskelund, managing director of Maersk China.

"Wherever there's a change, there's opportunity," he said.

Speaking of this week's deadly warehouse explosions in the northern port city of Tianjin, Smith said it had a minor effect on the group's facilities there, and there was no plan to move business to other ports at the current time.

Maersk owns a terminal and joint venture with a Chinese firm in Tianjin, but the terminal is 5 km away from the blast site. Smith said four employees of the joint venture were slightly injured by flying glass and some containers might be damaged.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today maersk optimistic about china business Arab Today, arab today maersk optimistic about china business

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today maersk optimistic about china business Arab Today, arab today maersk optimistic about china business

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday