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Maersk to make more from P3 than partners on ship size: Macquarie
MAERSK Line could save up to US$1 billion in operating costs on the Asia-Europe trade lane if the competition authorities approve the P3 Network, according to Macquarie Research.
The Australian financial house said the gain accruing to the Danish shipping giant will be derived from the fact that it will have the largest ships vis-a-vis and thus benefit more from the economies of scale than the other partners, Mediterranean Shipping Co and CMA CGM.
Vessels larger than 10,000 TEU are most likely to be used on the Asia-Europe and Asia-Mediterranean trade lane. The average size of Maersk's Asia-Europe fleet would increase from 9,600 TEU at present to 14,100 TEU by the end of 2015. That would reduce Maersk Line's unit costs on the trade lane by as much as 34 per cent, Macquarie said.
"[Our] analysis suggests the average vessel size available to the P3 partners on these trade lanes would increase significantly compared with the status quo - most notably on Asia-north Europe and Asia-[Mediterranean], where we estimate average vessel capacity will increase by 2,500 TEU and 3,100 TEU, respectively," said Macquarie.
This, Macquarie said, "suggests that Maersk Line will see a greater reduction in unit costs from the P3 Network than both of its partners". This could provide an overall cost saving of at least $1 billion, equating to a return on invested capital increase of around five percentage points, Macquarie said.
The Australian financial house said the gain accruing to the Danish shipping giant will be derived from the fact that it will have the largest ships vis-a-vis and thus benefit more from the economies of scale than the other partners, Mediterranean Shipping Co and CMA CGM.
Vessels larger than 10,000 TEU are most likely to be used on the Asia-Europe and Asia-Mediterranean trade lane. The average size of Maersk's Asia-Europe fleet would increase from 9,600 TEU at present to 14,100 TEU by the end of 2015. That would reduce Maersk Line's unit costs on the trade lane by as much as 34 per cent, Macquarie said.
"[Our] analysis suggests the average vessel size available to the P3 partners on these trade lanes would increase significantly compared with the status quo - most notably on Asia-north Europe and Asia-[Mediterranean], where we estimate average vessel capacity will increase by 2,500 TEU and 3,100 TEU, respectively," said Macquarie.
This, Macquarie said, "suggests that Maersk Line will see a greater reduction in unit costs from the P3 Network than both of its partners". This could provide an overall cost saving of at least $1 billion, equating to a return on invested capital increase of around five percentage points, Macquarie said.
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