Arab Today, arab today maersk optimistic about china business
Last Updated : GMT 08:36:26
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.

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 Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
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