THE world's largest ocean carrier Maersk Line has started offering trade finance to shippers in six states in the United States after successfully piloting a similar programme in four countries in Europe and Asia.
The programme is designed to give Maersk customers an alternative to bank financing for shipping and trade-related services attached to their ocean freight, freeing those companies to reserve capital for other uses.
The Danish ocean carrier conducted what it called "successful" pilots in Singapore, India, the Netherlands and Spain and is now rolling the programme out to shippers in New York, New Jersey, Georgia, Texas, South Carolina, and Florida initially.
Customers who want to participate need to provide three years of audited financial statements, financial institution information, and Know Your Customer (KYC) paperwork, similar to that which banks require, American Shipper reported.
The programme is designed to quickly establish credit worthiness, considering both the shipper's financials and shipping history with Maersk Line. It is also designed as end-to-end digital solution, including the provision of an electronic bill of lading, with faster release of funds at gate-in as opposed to when documents are submitted. Shippers using the programme also don't need to provide collateral, other than shipping with Maersk or its subsidiaries.
The Danish shipping giant said the company is especially targeting sectors at the value end of business, including manufacturers, refrigerated products, chemicals, apparel/textiles, and appliances.
Maersk also noted that its global footprint allows it to have relationships and intelligence in markets where its customers and their banks might not have access.
