Maersk plans to boost capacity in Asia, driven by trade growth and supply chain diversification, according to Bhavan Vempati.
Bhavan Vempati, Head of Asia Pacific Ocean Business at Maersk, has stated that Maersk is optimistic about the significant long-term growth potential of the Asian regional market and plans to deploy additional capacity.
According to Alphaliner's September data, Maersk has deployed over 343,000 TEUs in the Asian regional market - the world's largest container shipping market - making it the carrier with the highest capacity deployment in the region. Alphaliner noted that Maersk's capacity expansion within Asia has been aided, in part, by the hub-and-spoke structure of the 'Gemini' network. Maersk currently operates 108 container vessels in the Asian regional market, with an average vessel size of 3,176 TEUs, placing it ahead of other operators.
However, Bhavan Vempati noted that the 'Gemini' partnership is not the only reason for Maersk's accelerated expansion in Asia.
Bhavan Vempati stated that intra-Asian routes currently account for approximately 22% of global trade. Growth in this segment has been primarily driven by supply chain diversification, the continued expansion of manufacturing in Southeast Asia, and increasingly close economic ties among Asian economies. He expects that key factors - including diversification of origin locations - will continue to support growth in the intra-Asian market over the coming years, and that Maersk will deploy additional capacity accordingly.
Bhavan Vempati remarked: 'Maersk sees enormous long-term growth potential in the Asian regional market and anticipates that Maersk's network will evolve in line with customer demand and trade patterns.'
He cited Malaysia as an example of Maersk's strategic positioning. Maersk is working with glass manufacturer Kibing Group to strengthen connectivity between its production hub in Sabah and Malaysia's major port of Tanjung Pelepas by increasing sailing frequency and reducing transit times. At the same time, services between Tanjung Pelepas and other routes have also been expanded. In addition, Maersk has increased the weekly sailing frequency on its China-to-Cambodia route from one to three sailings per week.
Bhavan Vempati noted that tariff and geopolitical uncertainty has prompted companies to consider supply chain diversification and to spread production across Asia - a development that has made regional cargo flows more complex while simultaneously creating more business opportunities for carriers.
Maersk is not the only leading global carrier to place greater emphasis on growth in intra-Asian trade. Bhavan Vempati stated: 'As supply chains become more complex, intra-Asian trade will continue to grow. We believe this will create enormous growth potential, and Maersk plans to actively participate by investing in reliable transportation and integrated logistics solutions to help customers grow their businesses across the region.' He added: 'We are unable to comment on market share, but customer feedback has been encouraging and has further reinforced our confidence.'
Meanwhile, on 13 October local time, Maersk and Hapag-Lloyd resumed the FM1 service to strengthen connectivity between Asia and the Middle East. Maersk stated that the resumption of the FM1 service will provide customers with additional direct access to Khor Fakkan in the UAE, while necessary safety precautions will continue to be observed during operations in the Middle East region. The inaugural sailing will be carried out by the vessel 'Maersk Athabasca', which is expected to depart from Qingdao, China on 17 October.