Profits overboard _ the economist

Maersk Group has invested in all sorts of assets since the 1960s: supermarkets, airlines and recently oil drilling, as well as shipping. Electricity prices by country The idea was to construct a hedge against falling freight rates and spikes in oil prices. Gas after eating eggs When fuel is dear, squeezing container profits, drilling for oil and gas would keep it afloat, or so the thinking went. Gas station in spanish But since 2014 oil prices and freight rates have fallen together, throwing both the shipping and energy units into a sea of red ink (see chart).

In June Maersk Group’s chairman, Michael Pram Rasmussen, fired Nils Smedegaard Andersen, its CEO, and replaced him with Soren Skou, the head of the container line. Electricity font Mr Andersen, a former boss of Carlsberg, a Danish brewer, and the first CEO to be brought in from outside the company, was keen on retaining some diversification. K electric bill Mr Skou, who has worked in shipping since he joined the group in 1983, is believed to be more sceptical.

The main part of his review of the group’s operations will seek to determine whether it should break itself into two: a separate, publicly listed shipping business, encompassing Maersk Line and the group’s port terminals and logistics arms, and another listed firm concentrating on its oil exploration and drilling businesses. F gas certification logo That would reassure investors, worried that their money is being used to prop up failing divisions. Electricity and magnetism study guide It could widen its pool of potential investors as well as boost its value, says Neil Glynn of Credit Suisse, a bank.

The outcome of the review is still far from certain, but it is thought likely that Maersk Group will end up more focused on its roots in shipping. Gas 85 vs 87 Mr Skou, who remains CEO of Maersk Line as well as the overall group, has said he wants to see the group’s revenues grow, and its oil division will struggle to play its part in this. Electricity inside human body One short-term but serious problem for Maersk Oil, for example, is that production could halve by 2018 because its licence to operate Qatar’s largest offshore oil field is expiring in July next year.

Maersk Line, in contrast, starts from the position of being the biggest shipping firm in the world. Electricity invented or discovered Yet it too has lots of work to do if it is to boost revenues and profits from shipping. Gas pressure definition chemistry A favoured cost-cutting strategy among shipping firms so far has been to form alliances. Gas 2016 In January 2015 Maersk Line and Mediterranean Shipping Company (MSC) launched 2M, a partnership to share space on their vessels. V gashi This April four others got together, followed by six more in May. Gas 6 weeks pregnant These three groups now account for nearly three-quarters of the global market. Emitra electricity bill payment But alliances do not solve the problem of overcapacity and they have not stopped freight rates from falling.

Another tack has been to build bigger ships. Electricity flow chart “When oil prices were high we built bigger ships and pioneered slow steaming to save bunker costs,” says Soren Toft, Mr Skou’s COO and right-hand man. Grade 9 static electricity test Maersk Line built 20 huge “Triple-E” class vessels that could carry just under 20,000 containers each; its biggest rivals, MSC and CMA CGM, followed its lead. Grade 9 electricity test questions But with fuel prices much lower—in 2015 they accounted for less than 13% of Maersk Line’s costs—the savings are slim. Gas definition chemistry After the last Triple-E ship entered service last year, it cut back on ordering new vessels.

Maersk Group’s big new idea is to make its existing ships smarter. Gas city indiana weather Mr Toft says Maersk Line will focus on using these ships better by embracing the “age of digitisation”. Gas oil This is an area in which shipping lags well behind other sectors, such as aerospace. Gas x user reviews Whereas a modern jetliner creates several terabytes of data a day, it takes the average cargo ship 50 days to produce a single one. Electricity in india Most ships do not even have basic sensors to ensure their hatches are closed before leaving port. Electricity and magnetism study guide 8th grade Until very recently the industry resisted using data properly, says Martin Stopford, president of Clarkson Research, part of a shipbroker. Gas tax deduction Now it cannot afford to ignore systems that offer the chance of reducing costs by up to 30% by better co-ordinating the interaction of ships and shore, he says.

Maersk Line is retrofitting its ships to collect more data. Locate a gas station near me Last year it installed sensors on its containers that track their location and contents. Electricity history That makes it easier for port terminals to handle them, so ships can leave and start earning money again more quickly. Gas tax nj Software also works out how to stack containers on ships more efficiently.

Empty containers are another drain, costing shipping lines up to $20 billion a year, according to BCG, another consultancy. A gas is a form of matter that Maersk Line is not the only one using data to deal with this problem. Gastroenterology Japan’s NYK saved over $100m by getting better at spotting and using empty containers. Static electricity human body causes A new website called xChange, which started operating last November, allows shipping lines to swap spare containers among themselves to maximise efficiency.

The Danish firm’s three-year-old analytics team has also worked on discovering the optimal speed and course for its ships. 10 gases They are trying to cut its big repair bills, too. Npower electricity supplier number The hope is that predictive maintenance could achieve this quickly. Electricity cost per month Instead of waiting for ship engines to break down, sensors will report when they need care.

What Maersk Line does in digitisation is likely to be followed by the rest of the industry in fairly short order. Electricity and magnetism As an executive at one of Maersk Line’s rivals admits: “We just watch what Maersk does and copy it.” And although few shipping outfits have the resources to build ever bigger ships, even the smallest of them can learn to use data better. What are the 4 gas giants in the solar system Data crunching alone will not save the industry from the current storm; that will require ships to be scrapped. Gas under 2 dollars But it may prepare it better for the next one.