Abstract of Shipping management project of Maersk Shipping company

In the present work, the aim is to analyze the Maersk company for delivery and transportation services. The company analysis recommends the development of policy to promote management and investment decisions to maintain and improve the capacity of the national freight system. Considering the facts in the report, is it important to use current facilities and the information technology to achieve the goals of the company. To ensure the adequate capacity and federal agencies it is important to follow the activities and program an administrative system that affects the services.

1           Introduction of Shipping management project of Maersk Shipping company

The shipping industry is considered as the first global industry that correlates the continents and nations. The report of the U.S. Department of Transportation (2004) stated that shipping is vital for the economy, security, and transportation. There is no doubt that the shipping industry is vital for the development of economic strength that regulates prescriptive requirements and ensures the constructed international regulations are being followed. Scientific papers worked on marketing and management process of shipping that is responsible for identification, satisfaction, and anticipating the profitability (Goulielmos & Plomaritou, 2014). Moreover, the marketing strategies are used to show that the company serving the customers with shipping facilities are making satisfying services. The integrated marketing services are delivered by shipping companies over the ports. In approximately all tramp shipping companies, the marketing departments are not established, working and serving the companies. Our aim here is to identify the marketing and management strategies of shipping in Maersk Group. We believe that the future success of shipping companies is not only dependent on the successful delivery of services but also the management and marketing strategies. The bulk shipping companies use dynamical system with nonperiodic characteristics. Finally, based on the researches the report indicates the deficiencies in research and new marketing tools.

2           Literature review of Shipping management project of Maersk Shipping company
2.1         Shipping management of Shipping management project of Maersk Shipping company

The research conducted by Christiansen et al. (2004) and Zee et. Al. (2016) analyzed current state of the art system in the ship management and transportation. The research covers the important aspects of ship management such as spare part management, maintenance scheduling, and crew scheduling. Cullinance and toy (200) analyzed different factors for the modal choice and services were categorized on the basis of good characteristics (Plomaritou, 2006). The major contributing factors and characteristics of the shipping services are price, rate, cost, speed, reliability, and transit time. Wong et al (2008) investigated the issues associated shipping such as cargo locations, customer services, shipper reputation, shipper capabilities, cargo handling capabilities, comprehensive global service, and relationship with the customers (Plomaritou, 2008). The best quality practices and other factors induce an influence on the success of shipping services. The competitiveness depends on the service level in the ports and overall quality of the transport and shipping services increase with customer requirement satisfaction. The customer requirement is fulfilled by increasing the frequency of services, reliability, network expansion, and flexibility (Valipour, et al., 2012).    

2.2         Shipping marketing:

In shipping, the traditional marketing mix is considered for the transforming of shipping realm with the nonlinear marketing techniques. Marketing in the shipping is a management process that is responsible for the satisfaction of user requirement, identification, and anticipating the services. Marketing is a discipline that shows how the company will satisfy the customers. The marketing process help in attracting users and facing competition. In most of the shipping companies the marketing department has not been established (Goulielmos & Plomaritou, 2009). The companies not only accept the principles of marketing but also adopt the nonlinear marketing framework. The theory of marketing mix provides a comparison between the marketing of ships and the marketing of services within the traditional framework (Zhang & Lam, 2014). Nonlinear marketing strategy is based on the static analysis. The marketing strategies consider carrier considerations, reliability, shipper market considerations, transit time, and freight rates (Plomaritou, 2008). Research in literature concluded that the market is not homogeneous for the requirement of carrier and critical parameters for the planning of long-run business and marketing strategies are listed below,

1.      The market is divisible with categories of geographic dimensions and customers

2.      Shipper requirements under the market conditions are dynamic.      

Mangan et. Al. (2001) reviewed maritime marketing from 1972 to 2000 and measure the selection process of the model in transportation. Bichou and Bell (2007) applied different marketing channels coupled with the management theory (Goulielmos & Plomaritou, 2009).  Pando et. Al (2005) investigated the marketing strategies on the basis of quality and communication of 72 ports. The research confirmed that all the local and private ports prefer to develop quality, marketing and communication activities (Plomaritou, 2008). Cahoon (2007) analyzed the marketing communication as a strategic tool for the management of new customers and current customers with maximum customer satisfaction (Plomaritou, 2006).  

2.3         Management strategies of Maersk Shipping company

Panayides and Cullinane (2002) measured the global strategic alliances to achieve the management objectives. The theory identified the factors that contribute to the better management of the shipping industry (Valipour, et al., 2012). Bichou and Bell (2007) worked on the channel management theory for the consolidation of arrangements that operated in the container port industry. The structural equation model is developed for the shipping line and vertical integration strategies. Cheng and Choy (2007) identified that the shipping industry uses different strategies on quality management practices and how these factors induce impact on the shipping services (Goulielmos & Plomaritou, 2009). The theory of shipping industry executives identified four main success factors that are listed below,

1.      Charterer factor

2.      Quality management for the participation and management commitment

3.      Employee empowerment and training

4.      Performance measurement and quality information

The theory of marketing management and shipping management is responsible for profitability, anticipation and satisfaction of user requirement, and identification of customer services. The positive port brand image mainly communicates with competitive rates, professional management, and information technology. If the shipping companies have limited capabilities of management it could cause an impact on customer satisfaction (Valipour, et al., 2012). The management of the marketing department must consider the level of marketing expenses that are necessary to achieve marketing goals. The company should analyze the marketing work required for the achievement of sales volumes. The distribution of marketing budget is also considered in the management program.

2.4         Marketing strategies of Maersk Shipping company

Notteboom (2008) declared that the marketing of part is an important factor. The research conducted by Notteboom worked on ten important topics including port governance, port marketing, terminal hinterland and supply chain efficiency, the environment of ports, trades/commodities, port and supply chain security, traffic forecasting, and port labour (Goulielmos & Plomaritou, 2014).  Marketing is often considered as a management process that is responsible for the identification, customer satisfaction, and anticipating.  The uniform marketing theory is a complicated process and services for marketing. Another type of marketing is relationship marketing in which firms gives equal emphasis on the strengthening and maintaining a relationship with the existing customers. The relationship marketing shift from the transaction to the relationship focus in marketing. The original marketing mix can be simplified as the freight rate and price conditions of the company are not fixed and as a consequence, there is no marketing interest (Plomaritou, 2008). The marketing mix of the proposed tramp shipping is provided below in figure 1. The marketing mix for tramp shipping can be further categorized as sea transport, office people and crew, distribution channels, physical evidence, promotion safety and quality of public relations, freight rate, and operations (Katona & Sarvary, 2014). The eight Ps must be conceived for the decision of shipping context. The main questions arise here for the marketing strategies are listed below,

     What are the services that can be delivered to customers by improving marketing strategies?

       What is the price and fare charged for the customers?

     What is the channel distribution and what are the services delivered to the customers?

3           Research methodology of Maersk Shipping company
3.1         Company

In the present work, the Maersk company is selected. Maersk has solutions that offer to the customers for the small and large business and has the opportunity to grow. The company serve the customers with frequent departures on all major trade lanes along with the inland services for the true end to end experience. Maersk transportation company is one of the largest container shipping company and annually they deliver 12 million containers around the globe. The strategies of services are simply ended to end supply chain (Maersk. com, 2020). Dry cargo commodities are also delivered such as auto parts, electronic parts and papers. Inland services are delivered by truck, barge and rail for goods from farm to the store doors. Maersk is an expert in global integrated logistics and provides strong compensation solution and financial solution to overcome the needs of end to the end supply chain. Maersk provides ECO delivery that is the newest innovation for the sustainable way of transportation of services and goods. In this service, Maersk uses sustainable biofuel for the immediate carbon reduction in the shipping (Maersk. com, 2019). In international development, time consideration is crucial when relief work is involved in the work. In the container sales of Maersk, their active services are required for the good structure and variety of purposes. The services are inducing impact on energy consumption (Maersk. com, 2020). 

3.2           Our Methodology  of Maersk Shipping company

In the present work, the secondary data collection methodology is used that involves usage of already existing data. The existing data is further summarized and collated to increase the effectiveness of overall research. The possible documents used in the research are available on the websites, journal articles and books. In the present research about the shipping management in the specific company, the data is collected from books, journal articles and statistical reports of Maersk transportation company. After collecting the data, the next step is to categorize them by type. The statistical reports are further compared with the results of research articles.   

3.3         Company profile and shipowner of Maersk Shipping company

Maersk transportation company was established in 1904 and provide services across 121 countries. Maersk transportation company is serving shipping services across 343 ports around the world and they connect the customers globally. Maersk transportation company worked under the regulations that require the shippers to provide the gross verified mass of the containers before loading it. The method makes the shipping process simple. Maersk transportation company also serve users with simple services without complexity (Plomaritou, 2008).

3.4         Market trends of Maersk Shipping company

The shipping marketing environment is changing continuously as it creates new opportunities along with possible threats. The marketing opportunities can be defined as attractive arenas for the marketing actions in the shipping companies that can provide a competitive advantage. On the contrary, the environmental threat imposes a challenge on adverse trend and development of the environment. The possible threats in shipping marketing are caused by the institution and ship management (Valipour, et al., 2012). They tend in a shipping marketing environment is increasing due to usage of information technology such as placing orders through online services, online payment methods, security for the product delivery, improved handling of the items and higher customer satisfaction obtained as feedback from the customers. The trend of shipping is increasing with the development of world trade. With the assistance of information technology, the shipping companies can review the marketing strategies to exploit new opportunities to obtain satisfaction of clients (Goulielmos & Plomaritou, 2014).  In our work, analysis of the shipping company is conducted based on the systematic collection of required data and information about the trends of the shipping market. The systematic data collection is distributed in the enterprises for decision making. The ship holding companies follow independent analysis to undertake the accomplishment of researchers.

3.5         Marketing strategies of Maersk Shipping company

Maersk utilizes corporate sustainability as working systematically to enhance the positive impact on people and to reduce the negative impact on the environment and society. The company aims to improve the business by unlocking the growth for the company and society by leveraging the core strengths of the business. The marketing strategies are developed to provide solutions for the global challenges through collaboration, investment and innovation. For many years, shipping of containers was considered as a complex process. The inefficient and manual work of booking and buying the process has been full of surprises (Maersk. com, 2020). Maersk aims to introduce a truly online product that can improve the services in a speedy way. The supply chain services are meeting the demands of the customers and empower the employees to make the right decisions. Maersk is further strengthening its services and logistics by offering performance team capabilities within the warehouse inland transport, e-commerce, and services. Maersk announced to close the acquisition of performance team and distribution services. The important consideration is towards the capabilities for integrated container logistic company. The new services are designed to offer end to end supply chain solutions for the customer (Maersk. com, 2019).

3.6         Maersk management Strategy of Maersk Shipping company

In the management strategy of Maersk transportation company, the company focuses on different areas. The company is focusing on the new directions to by reasoning the group to enable profitable growth as well as the strategic focus because new directions assist them highly. By focusing continually on ensuring the capital structure, the company will increase the strategic focus, disciplined capital allocation and profitable growth. Furthermore, the business of the company is also divided into two divisions (current structure and further structure) some by reasoning. The reasoning also enables the strategic focusing, increased agilities and synergies, profitable growth of the business as well as disciplined capital allocation because it maximizes the value of shareholders. Moreover, it directly associated with the transportation & logistics, energy and capital allocation, performance management and the leadership of the company (investor.maersk.com, 2016). These are the strategic intents of Maersk. By focusing on the logistics & Logistics, it will improve the customer experience and the product offering which is supported by digitalized solutions, digitalized services as well as innovative services. Furthermore, the most effective and reliable network of the transportation industry is operated by transportation & logistics, that combined with the cost leadership and operational excellence. On the other side, the energy strategic intent of the Maersk oil will continue to invest in the strategic projects which are already under development (Lirn, et al., 2014). On the other side, the capital allocation and performance management are the focusing on the capital allocation in optimizing value in energy and transportation & logistics on the disciplined capital allocation with the ambitions of growth. It also focusing continually on making sure the defined key financial ratio targets and the strong capital structure in the line along with the grade rating of investment. In the last, it will manage both divisions with separate management teams with the strong financial targets and the industry experience (Maersk, 2016).

3.7         SWOT analysis of Maersk Shipping company

SWOT analysis is considered as a vital strategic planning tool that is used by the managers to measure the situational analysis. The technique uses the map of strengths, weakness, opportunities, and threats for the current business environment.

3.7.1        Strength of Maersk Shipping company

1.      Maersk has a highly skilled workforce that got experience after successfully passing the learning and training programs. The workforce is highly skilled and motivated to achieve the goals.

2.      Over the years, Maersk has developed as a reliable and strong distribution network that can reach the potential market (Goulielmos & Plomaritou, 2009).

3.      The strong basis of services is based on reliable suppliers that enable the company to overcome the supply chain bottlenecks.

4.      The successful track record and customer satisfaction show reliable working operations and supply chain. The management department, successfully, obtained the customer's satisfaction levels with the potential services.

5.      The strong dealing community of the company build a culture of dealers and distributors to promote products of customers (Torstensson & Sonesson, 2010).

3.7.2        Weakness of Maersk Shipping company

1.      Maersk requires more investment in the new technologies under the defined expansion plan for different geographic locations.

2.      The company need to put investment to tackle the challenges presented by the new entrants.

3.      The net contribution and profitability ratio increase below the industry average therefore internal development is required in Maersk (Valipour, et al., 2012).

4.      The current asset ratio and liquid asset ratio suggest the company to introduce financial planning and development.

5.      Maersk has limited success outside the core business and the company faces challenges while moving the series of services to the product segments in the present culture (Chou, et al., 2012).

3.7.3        Opportunity of Maersk Shipping company

1.      The government green scheme is providing an opportunity for the companies for procurement and Maersk can avail the opportunity.

2.      Maersk can create new environmental opportunities by using new technology and gain market share for the new services (Valipour, et al., 2012). 

3.7.4         Threats of Maersk Shipping company

1.      The new technologies are developing competition that could be a serious threat to the company.

2.      The company can face some of the lawsuits in the market. The law conditions are different and have continuous fluctuation therefore, it is important to understand the standards of the market (Valipour, et al., 2012; Goulielmos & Plomaritou, 2009).

3.8         Recommendation of Maersk Shipping company

The services provided to the customers can be used to ensure the fulfilment of regulations for the transportation system. The recommendations for the shipping services improvement are listed below,

1.      Local state and the federal government should be involved in the regulation and services.

2.      It is important to consider the primary benefits of the project with the lower cost of services (Valipour, et al., 2012).

3.      The most important consideration is to select the appropriate choices about the financing arrangements (Nap. Edu, 2020).   

4           Conclusion of Maersk Shipping company

The present work aimed to conduct research on shipping services provided by Maersk company. The present strategies of the shipping company follow the way to build future success by adopting current circumstances, measuring the influence of circumstances, and increasing the flexibility and influence of the services.  The research shows flexibility, adaptability, and complexity of the services on the basis of market success. The strategies are developed for better management, leadership, and culture in the Maersk company.

5           References of Maersk Shipping company

Chou, C. C. et al., 2012. SWOT Analysis of Operation Strategies of the World’s Top 20 Carriers. In Applied Mechanics and Materials , pp. 2863-2866.

Goulielmos, A. M. & Plomaritou, E., 2014. The Shipping Marketing Strategies within the Framework of Complexity Theory. British Journal of Economics, Management & Trade, 4(7), pp. 1128-1142.

Goulielmos, A. M. & Plomaritou, P., 2009. A review of marketing for tramp shipping. Int. J. Shipping and Transport Logistics, 01(02), pp. 119-150.

investor.maersk.com, 2016. Progress update on strategic review. [Online]
Available at: https://investor.maersk.com/static-files/d941a945-9407-4f98-b5bf-44c2f08e83d2

Katona, Z. & Sarvary, M., 2014. Maersk line: B2B social media—“It's communication, not marketing. California management review, pp. 142-156..

Lirn, T. C., W., L. H. & Shang, K. C., 2014. Green shipping management capability and firm performance in the container shipping industry.. Maritime Policy & Management,, 41(2), pp. 159-175..

Maersk. com, 2019. Maersk introduces Maersk Spot, a new fully online product that simplifies the buying process for customers. [Online]
Available at: https://www.maersk.com/news/articles/2019/06/25/maersk-introduces-maersk-spot

Maersk. com, 2020. ALL THE WAY. [Online]
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Maersk, 2016. Maersk Group Progress update on strategic review.

Nap. edu, 2020. Freight Capacity for the 21st Century:. [Online]
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Plomaritou, E., 2006. THE KEY STAGES OF MARKETING IMPLEMENTATION IN SHIPPING COMPANIES: AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGEST TANKER AND LINER COMPANIES IN THE WORLD. Shipping in the era of Social Responsibility, 01(01), pp. 14-16.

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