Flush with a USD19.29 billion revenue (+55%), USD6.78 billion net income and a USD 6 billion free cash flow (+154%) in the first quarter of 2022, Maersk has never been in a stronger position financially, setting the record for the biggest profit in Danish history.
On the back of its very strong performance in 2021 continuing into 2022, A.P. Moller – Maersk today announced the completion of its acquisition of Senator International, a well-renowned global company in freight forwarding.
“Senator brings with it a strong organization and a well-developed airfreight network comprising own controlled flights and long-term partnerships with best-in-class airlines, a well-established full container load (FCL) and less than container load (LCL) network and specialized services such packaging, warehousing and distribution across five continents,” Maersk said in a press release announcing the completion.
The acquisition will enable Maersk to offer an even wider range of products and the ability to provide flexible and integrated logistics solutions to our customers, allowing them to speed up or slow down cargo depending on their changing supply chain needs.
“We are delighted to welcome the Senator team to our Maersk family. As a global provider of integrated logistics, we are improving our ability to provide end-to-end solutions to our customers. With Senator on board, we are ramping up our air freight capacity, network, and know-how significantly to cater even better for our customers,” said Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller-Maersk.
Maersk’s acquisition is said to be a result of more customers requesting alternate means of cargo transportation on the back of the knock-on effects of Covid-19 in the market which have led to widespread port congestions and supply chain disruptions.
Senator International will add its broad industry expertise and product knowledge to Maersk’s existing network and thus provide customers with increased flexibility and redundancy in their supply chains.
“By joining Maersk, our customers will have access to a broader portfolio of products for their business needs and provide them with a single point of contact. It’s a perfect match, and we are really excited about the next chapter in our united journey,” said Tim-Oliver Kirschbaum, CEO of Senator International.
Senator’s deep experience and solid transport network will be key to the continued joint success, and we will bring new opportunities to our customers under the Maersk brand.
Maersk’s ambition is to have approximately one-third of the annual air tonnage carried within its own controlled freight network, which will be achieved through a combination of owned and leased aircraft.
The remaining capacity will be provided by strategic commercial carriers and charter flight operators.
A.P. Moller-Maersk has been enhancing its service offerings on its way to positioning itself as a full end-to-end logistics services provider with the acquisition of Pilot Freight Services, a leading U.S.-based international and domestic supply chain provider with cross-border solutions in Canada and Mexico.
Pilot Freight Services offer customized international, domestic, and cross-border logistics to Maersk’s North America landside logistics capabilities for business-to-business (B2B) and business-to-consumer (B2C) distribution models.
A.P. Moller-Maersk also acquired Visible Supply Chain Management LLC, which operates nine fulfillment centers across the U.S., and Netherlands-based B2C Europe in separate deals with a combined enterprise value of $924 million.
B2C Europe specializes in parcel delivery across Europe and beyond including labeling services, pick-ups, sorting parcels, linehaul, and injection into the last-mile delivery network, as well as customs clearance and returns logistics.