Maersk accelerates organization of Damco Forwarding and Safmarine
Earlier today, Maersk communicated brand specific Customer Advisories related to the strategic integration of Safmarine and Damco into Maersk to improve its customer experience and end-to end service delivery model.
These changes are aligned with Maersk’s goal of becoming the global integrator of container logistics, connecting and simplifying their customers’ supply chains.
Here in North America, Maersk wants to summarize the changes (and also highlight many of their business areas that have no changes).
The changes in Safmarine and Damco are designed to Safmarine
- Strengthen its customers supply chains by removing handoffs.
- Improve its customer experience by simplifying multiple connections points across the Maersk organization.
- Leverage the geographical scale, trust and performance of Maersk’s Ocean product.
- Expand its Logistics and Services products to create more efficiency of use and competitive advantage.
The Safmarine brand, business activities and organization will transition into Maersk to become one frontline organization servicing our combined customers with an integrated product and service offering.
Safmarine integration targets easier customer interfaces
Maersk is doing everything possible to continue the renowned Safmarine customer experience within the Maersk brand.
In fact, the Safmarine North America Customer Service team is already based in The Woodlands, Texas office – in the same office as the Maersk Customer Service team so they have planned a smooth integration that keeps our Safmarine talent.
Safmarine’s success as an African regional line has been strong and consistent through the years.
The company already makes heavy use of the Maersk Ocean network – so it was a natural fit to integrate it into the Maersk brand to achieve an easier customer interface from booking, pricing, customer service and liner network aspects.
The Safmarine team and its passion for customers will be infused into the Maersk brand starting October 1, 2020 and the brand will be discontinued by the end of the year.
Damco focus on end-to-end solutions for Maersk customer base
Effective 1 October, Damco’s Air and Less than container load (LCL) offering will be combined with Maersk’s Logistics and Services products to complement its end-to-end offering to customers.
This year, the pandemic has clearly shown the value of Damco’s strength in air freight performance and LCL so the timing was right to introduce a more simplified and customer centric Ocean & Logistics organization to offer a stronger, more simplified, agile supply chain service to customers with less handoffs.
The Damco brand will be discontinued and transition to the Maersk brand by the end of the year.
- Air freight: All air freight contracts remain intact and Maersk’s goal is to grow its air freight business further to strengthen their customers’ air freight performance.
- LCL: Maersk wants to grow this business through existing channels and will integrate LCL into its Logistics and Services suite of products.
- NVOCC: Since Maersk will be using its own assets to offer unique value propositions, they will not pursue the Ocean Full container load (FCL) multi-carrier NVOCC product as a general offering. Where possible, current NVOCC customers will be offered Maersk.com or Twill.
Maersk will ensure any contractual agreements today with its DAMCO customers are met.
What is not changing as part of Maersk’s announcement today:
While Maersk is presenting a few changes today, it’s also just as important to highlight what is not changing in the North America region:
- Sealand – a Maersk Company: There are no changes to Sealand – a Maersk Company organization and its service to customers.
- Brokerage: Maersk Customs House Brokerage, Vandegrift- A Maersk Company and the KGH Brokerage acquisition.
- W&D: Maersk Warehousing & Distribution and Performance Team.
- Trucking: Hudd Transportation and Performance Team Transportation.
- Terminals: APM Terminals