FOREIGN TRADE UNIVERSITY,

HO CHI MINH CITY CAMPUS

-------****--------

MID-TERM REPORT
OVERVIEW OF A.P. MØLLER – MÆRSK A/S
AND MAERSK VIETNAM LTD

Group Fantastic Four:

Phan Phuc Truong Huy – 1915535322
Cao Chan Hung – 1915535320
Nguyen Thuy Minh Anh – 1915536010
Nguyen Hong Ha – 1915536046
Class: K58CLC6
Major: Logistics and Supply Chain Management
Instructor: Nguyen Thi Hai Thuy

Ho Chi Minh City, 20/10/2019

CONTENTS
1.Introduction ---------------------------------------------------------------------- Page 2

2.History of Maersk --------------------------------------------------------------- Page 2

3.Product range -------------------------------------------------------------------- Page 3

4.Organizational structure -------------------------------------------------------- Page 7

5.Achievements ------------------------------------------------------------------- Page 10

1|Page
 1. INTRODUCTION
Import and export has been holding a leading position in foreign trade activities.
Three-fourths of the earth is covered by the ocean, so international sea transport
occupies a particularly important position in the transportation of goods on the world
market. Compared to other modes of transport, the volume of goods transported by sea
accounts for nearly 80% of the total volume of goods transported worldwide.
Nowadays, not only in developed countries, but in developing countries, this trend is
growing strongly as well.
Vietnam is a coastal country so it is not out of this trend. Many companies in
Vietnam specializing in forwarding and logistics have been established, marking the
new development of foreign trade in Vietnam.
Acknowledging the necessity of learning about logistics and being given the task of
making a report about a start-up enterprise by our English teacher, we decided to do a
research about A.P. Møller – Mærsk A/S and Maersk Vietnam Ltd to learn more about
a logistics business.
2. HISTORY OF MAERSK
Maersk Vietnam CO., LTD owned by A.P. Moller-Maersk – an International
business company established in 1904, Denmark. Maersk is most known for its ocean
carrying, oil mining and retailing activities. The company is based in Copenhagen with
subsidiaries and offices across 130 countries.
According to investment license no.2466/GP, Maersk Vietnam CO., LTD is the first
100% foreign-owned company within the Vietnam logistics industry.
Maersk is the world’s largest container shipping company and also is the leading
international ocean carrier in Vietnam. The company’s head office is located in Ho Chi
Minh city with branch offices all over the country, including: Hanoi, Haiphong,
Danang, Cantho, Quynhon and Hochiminh city.
Important events in the history of the company:
- 1904: The Steamship Company Svendborg was founded by Captain Peter Mærsk-
Møller. The company's first ship was the British-built 2,200 tdw cargo steamer
Svendborg.
- 1918: Maersk founded Maersk Line Maritime Company, operated in Japan, Shanghai
(China) and the east and west coasts of the United States. Then Maersk started the oil
tanker business.
- 1962: The Danish government grants A.P. Møller a license to search for oil in the
Danish part of the North Sea. At the time, almost nobody expects any oil to be found.
A new oil company, Mærsk Olie og Gas A/S, is later founded.
- 1969: Maersk Air was founded and began the operations in the following year.
2|Page
- 1974: Maersk bought the first container ship (Maersk Line).
- 1995: Established logistics services in Ho Chi Minh city as MAERSK Logistics
(Mercantile originally).
- 1998: Maersk acquired the shipbuilder Volkswerft in Stralsund (Germany)
- February 1999: Mærsk took control of the Safmarine (South Africa) container line,
including the Compagnie Maritime Belge (CMB) with 50 owned and chartered
container vessels.
- November 1999: Mærsk bought container shipper Sea-Land Corporation (United
States) with 70 vessels, container terminals and liner service from the CSX Corporation.
The new name of the shipping company is Mærsk Sealand.
- 2002: Maersk bought the shipping lines Tom A/S (Denmark) and Smit Wijismüller
(Netherlands)
- 2003: Maersk bought the third largest marine carrier in the world Royal P&O Nedloy
NV (head based in Rotterdam (Netherlands)) for € 2.3 billion and bought Farrell Lines
- 2004: Maersk sold Maersk Data to IBM Danmark A / S
- 2005: MEARSK was officially launched in Vietnam as a 100% foreign-owned
company.
- 2007: Maersk had the sales of $51,218 billion and the profits of $3,427 billion.
- 2017: A.P. Moeller-Maersk A/S was the world’s biggest containership operator

3. PRODUCT RANGE
3.1 Shipping and Cargo Services

As the world’s largest container shipping company, Maersk moves 12 million

containers every year and delivers to every corner of the globe. Regardless of any
industry, any commodity, or any key markets, Maersk has solutions that offer both small
and large businesses the opportunity to grow.
Container transport and related activities are the largest business fields of AP Moller
- Maersk:
- Provide nearly half of Maersk group’s revenue annually.
- In fiscal-year 2018, the container shipping of AP Moeller-Maersk reported
revenue of over 28 billion U.S. dollars.
- Include worldwide container services, logistics, freight forwarding solutions and
terminal operations with brands: Maersk Line, Safmarine and Damco.
- The largest container shipping company in the world since 1996.
3.1.1 Ocean Transport
3.1.1.1 Dry Cargo:
3|Page
 Dry cargo commodities- be it retail, auto or electronic parts, paper, and
much more- are what Maersk ships most of.
Whether the cargo is complex or straightforward, Maersk can find the best
solution for customers’ commodity and business.
Maersk provides ocean transport for agriculture, apparel and footwear,
automotive, electronics, machinery.
3.1.1.2 Refrigerated cargo:

Having pioneered refrigerated transport since 1936, Maersk has the

knowledge, equipment and expertise to streamline customers’s logistics and
supply chain with optimal refrigerated transport solutions.
- Transport goods from door to door.
- In a sealed remote-controlled environment t to ensure the perfect condition.

Types of Cargo that Maersk provides services: Bananas and pineapples,

fruits and vegetable, protein, fish and seafood, pharmaceuticals.
3.1.1.3 Special cargo:

With more than 40 years of experience in transporting oversized and healthy

shipments and unparalleled global network, Maersk have the capacity to deliver
special cargo to any part of the world.
- Ship all types of special cargo.
- Exceed the proportions and capabilities of a single standard container to
provide suitable equipment.
3.1.1.4 Dangerous cargo:

Maersk is continuously innovating to provide solution that exceed

customer’s expectations when shipping dangerous goods.
- Verify booking information
- Inspect containers
- Ensure the highest safety standard.
3.1.2 Inland Services:

The cargo’s journey never begins or ends at the port and that’s why we have our
end-to-end shipping solutions to ensure supply chain performs like a clockwork.
Maersk’s inland services includes:
- Trucks: provide flexible point-to-point service, delivering small loads over
short to long distances over widely dispersed geographic areas.
- Rail: provides versatility, high carrying capacity, and speed making it a great
option.
4|Page
 - Barge: provides additional opportunities to utilize water service into point
not accessible by large main liner vessels.
3.1.3 Cargo and Financial Services:
As experts in global integrated logistics, Maersk can bundle Trade finance,
Customs House Brokerage and Value Protect with transportation solutions to meet
customers’ end to end supply chain needs.
3.2 Supply Chain Services
Maersk focuses on solving customer’s supply chain needs from end to end, taking
the complexity out of container shipping.
Maersk is at the forefront of developing innovative supply chain solutions, fusing its
global network and depth of expertise with pioneering digital innovations to enable
customers to stay ahead.
3.2.1 Supply Chain Management:
Provide visibility, consistency and optimization off the flow of the products,
documentation and information throughout your supply chain.
Maersk team becomes an extensions of customers, living their strategy and
maintaining operational exellend abroad.
Plan  execute optimize the flow of cargo, information, document.
3.2.2 Warehousing and Distribution:
Maersks’ strategic warehouseing locations combined with best in class design
tools, processes and systems ensure cost-efficient distribution solutions.
- Help customers adapt to rapid market changes while minimizing investment
risk.
- Warehousing Services include: fulfillment center, consolidation and
deconsolidation center.
3.2.3 Supply Chain Development:
Maersk helps customers identify key areas of improvement, thus creating a more
effective logistics network.
3.3 Freight forwarding

Maersk freight forwarding business is handled by Damco which is part of A.P.

Moller - Maersk. From specialized ocean shipments to airfreight and inland
transportation, its advanced solutions and extensive hub network ensure complete
control, fast transit times and seamless connections to the final destination.
3.4 Digital solutions:

Maersk tailored online services take the complexity out of the shipping but letting
customers instantly book, manage and track shipments and much more
3.4.1 Web solutions:
Maersk website: let customers take full control of shipping process and display
the data they need.

5|Page
 3.4.2 Mobile solution:
Maersk shipping app help to track cargo, schedule new shipments, receive
automatic notification.
3.4.3 MyFinance: let customers:
- Make payments electronically.
- Reduce paperwork
- Simple overview off invoices and account.
3.5 Retail operations:
Maersk has a 50% stake in the Danish supermarket complex. The complex currently
has nearly 1,200 supermarkets in Denmark and in Germany, the United Kingdom,
Poland and Sweden.
In addition, Maersk also has a 20% stake in the Danish Bank (Den danske Bank),
the largest joint stock bank in Denmark.

3.6 Other activities:

3.6.1 Petroleum activities:
Maersk Oil was founded in 1962 when Maersk was awarded a concession for oil
and gas exploration and production in the North Sea Danish region.
Today, Maersk Oil is involved in the exploration and production of oil and gas
in many place in the world.
- Total oil production is more than 600,000 barrels per day (95,000 m³ /days)
- Gas production amounts is about 1 billion cubic feet (28,000,000 m³) per day.

3.6.2 APM Terminals

AP Moller - APM Terminals- independent business unit of Maersk- is an
international container terminal operating company headquartered in The Hague,
Netherlands.
- One of the world's largest port and terminal operators as well as providing cargo
support and container Inland Services.
- The largest port and terminal operating company in terms of overall geographic
scope.
- Operates 74 port and terminal facilities in 40 countries on five continents, with
five new port projects in development, as well as over 100 Inland Services
operations providing container transportation, management, maintenance and
repair in 38 countries, for an overall global presence of 58 countries.

3.7 Maersk Vietnam Ltd’s product range

3.7.1 Transport:
- Dry cargo
6|Page
 - Reefer cargo
- Special Cargo
3.7.2 Digital services
3.7.3 Additional services
- Inland services
- Customs house brokerage: to ship cargo from A to B, it is important that
customers have “cleared” their cargo with customs on both sides.
- Value protect
4. ORGANIZATIONAL STRUCTURE
4.1 DEPARTMENTS

Maersk's organizational structure is divided into major departments, each of

which ensures a distinct function, undertaking business activities for each of the
company's key areas.
- Supply chain management department: manage and advise goods supply activities,
manage documents, bonded warehouses, monitor import and export flows
- Sea freight department: manage all activities related to sea freight forwarding services
- Air freight department: manage all activities related to air freight forwarding services
- Value added services: caring, answering questions, consulting work for customers
- Contract Logistics department: make necessary documents for customers' freight
forwarders such as bill of lading, customs declaration, tracking orders from the time of
signing the shipping contract with customers until goods delivered to the recipient
In addition, the company also has other departments to control the overall
operation of the company, manage overall resources including human resources and
finance as well as orient the long-term and sustainable development, those departments
include:
- Commercial department: look for customers in need of freight forwarding; look for,
contact, establish and maintain relationships with partners, agents, shipping lines; plan
business for the company.
- Continuous improvement department: monitor the overall operation of the company,
manage strategy, implement human resource training programs, develop human
resources in the company
- Human resources department: managing human resources, monitoring salaries,
bonuses, ensuring effective use of human resources in all activities of the company.
- Finance department: monitor, finalize expenses, revenue, profits of the company,
prepare quarterly and annual business reports

7|Page
4.2 MAERSK’S LEADERSHIP
4.2.1 The Executive Board of A.P. Møller - Mærsk A/S.

Søren Skou Carolina Dybeck Happe

Søren Skou has been CEO of A.P. Møller Executive Vice President and CFO Carolina
Mærsk - A/S since June 2016. As of Dybeck Happe joined A.P. Møller - Mærsk
October 2016, CEO of the Transport & A/S in January 2019.
Logistics division.

Vincent Clerc Søren Toft

Executive Vice President Vincent Clerc has Executive Vice President Søren Toft joined
worked for Maersk since 1997. A.P. Møller - Mærsk A/S in 1994.

Morten H. Engelstoft
Executive Vice President Morten H.
Engelstoft has been with A.P. Møller -
Mærsk A/S for 31 years.

8|Page
 In addition to the Executive Board, Maersk’s Executive Leadership Team includes:
- Adam Banks - Chief Technology & Information Officer
- Henriette Thygesen - Chief Executive Officer, Svitzer
- Caroline Pontoppidan - General Counsel and Head of Corporate Affairs
- Ulf Hahnemann - Chief Human Resources Officer
- Navneet Kapoor- Chief Transformation Officer

4.2.2 The Director Board of Maersk Vietnam Ltd

Since 1991, Maersk Vietnam Ltd. has represented Maersk, Sealand, Safmarine
and Damco. Here are the top people in the company:

Ms. Lam Bui Ms. Giang Nguyen

Country Manager Vietnam, Cambodia Area Head of Sales Maersk Vietnam,
Sealand - A Maersk Company Asia Cambodia, Myanmar

Mr. Marco Civardi Ms. Tuyen Nguyen

Area Managing Director Maersk Vietnam, District Managing Director - Damco
Cambodia, Myanmar Vietnam, Cambodia, Myanmar

9|Page
 5. MAERSK’S ACHIEVEMENTS
Maersk operates in many fields, mainly shipping (Maersk is the largest transporter
in the world accounts for more than 14.5% of the global market), offshore drilling and
exploitation, consumer retail business. Maersk is headquartered in Copenhagen and has
branch offices located in 130 countries. The group currently has more than 110,000
employees. In 2007 the group ranked 138th on Fortune Magazine's list of the 500 most
profitable businesses and is growing stronger. In 2018, A.P. Moller - Maersk reported
strong revenue growth: revenue increased by 26% to USD 39.0 billion (USD 30.9
billion), with growth in all segments. Non-ocean reports up to 32% (35%) of total
revenue.
5.1 APM shipping service
Compared to steam ships with a capacity equivalent to 325 containers, Maersk now
uses very large ships with a capacity of 20,000 containers. The Emma Maersk is 397
meters long, nearly 4 times the size of a football field, and higher than the height of the
Eiffel Tower. According to data released by Maersk Lines, the ship has a nominal
capacity of 11,000 TEUs, equivalent to the capacity of a 71km train; and if a 20
'container holds 48,000 bananas, this ship can hold 528 million, enough for each of the
entire US and European population.
In fact, many people believe that this ship can hold more than announced, even up
to 15,212 TEU as estimated by AXS alphaliner.

5.2 Maersk Line Named ‘Container Line Of The Year’

During a gala event in London’s Lancaster Hotel Maersk Line received the Readers’
Vote Award for Container Line of the Year at the 20th edition of Global Freight Awards
organized by Lloyd’s Loading List.

5.3 Maersk Gallant Sets New Record Of Drilling Depth On Norwegian Shelf

With a total depth of 5,941 metres, Maersk Gallant has beaten the record for deepest
well ever drilled on the Norwegian continental shelf.
On 31 July, Maersk Gallant drilled the Solaris ultra HPHT (high-pressure, high-
temperature) well to a total depth of 5,941 metres TVD (True Vertical Depth).
“We have broken a number of records during the Solaris operation. But this
achievement is second to none. There was a lot of cheering in the driller’s cabin that
day,” says Sadi Ozturk, Assistant Rig Manager on Maersk Gallant.

10 | P a g e
5.4 Maersk oil

Maersk Oil was founded in 1962 when Maersk was awarded a concession Ministry
for oil and gas exploration and production in the North Sea Danish region. Today,
Maersk Oil is involved in the exploration and production of oil and gas in many place
in the world. - Total oil production is more than 600,000 barrels per day (95,000 m³
/days) - Gas production amounts are about 1 billion cubic feet (28,000,000 m³) per day.

11 | P a g e