Could you give us a brief overview of Maersk’s business and footprint in ASEAN?

Maersk’s business model is centered around our purpose to “Improve life for all by integrating the world”. Each day, we move over 1 million tons of cargo – more than a sixth of the world’s trade. After a century of history as an ocean carrier with a network of over 750 ships, we asked ourselves how we can stay relevant for the next 100 years. In 2016, we defined our strategy to become a global integrator of logistics with the ability to offer the speed, transparency, and green footprint demanded by our customers. Singapore is a home away from home for us, as one of our major global operations centers from where we handle vessel planning and cargo management. 75% of our shipping network goes through Asia, and Singapore is a significant shipping hub, connecting Asia with the West.

What are the latest achievements at Maersk in Singapore?

We are preparing to open two new warehousing facilities, one for multiple users and one dedicated to a global customer under the chemical vertical. These two new units, together with the recent acquisition of air freight company Senator International, and the acquisition of LF Logistics, once approved, gives us integrated capability to use Singapore as a base for multimodal logistics: By tapping into Senator’s airfreight network, Singapore becomes an important node for connecting Asia to Europe; with LF Logistics, we will expand our footprint of Asian warehouses and grow our inland logistics capabilities, gaining a very large presence in Singapore for omnichannel distribution. The warehouse and these additions bring us closer to becoming an end-to-end service provider, with the ability to offer “last mile” services, covering customers entire distribution in Singapore as well as using Singapore for regional distribution.

What are the main weaknesses that the pandemic exposed in global trade?

The last two years took major supply chain ecosystems through the grind, first by chocking the supply side when China went into lockdown in early 2020, and then slowing demand. The common thread across the supply chain is the lack of technology application to prevent and mitigate these disruptions. This gap has implications across three dimensions: digitalization, integration, and decarbonization.

The movement of goods leaves behind a very long paper trail, but if this was turned into data, it would amount to huge volumes of information available at the click of a button. Secondly, the number of interacting nodes within the supply chain for a particular good is very long, from factory to customs clearance, port, ship, and then in reverse order to reach the store and final customer. Integrating these nodes would create simpler, streamlined supply chains, which is why we invested passionately in warehousing, land distribution, and fulfillment centers to give customers a fully integrated offer. And finally, more customers pay attention not just to how goods are made, but also to how they are transported. Our top 200 customers have committed to net-zero carbon goals, and we are eager to support them in meeting their targets.

Could you introduce Maersk’s NeoNav and comment on the company’s wider digitalization approach?

NeoNav is our 4PL digital solution designed to integrate multiple information streams across the supply chain. Essentially, through NeoNav we can visualize, analyze, and measure different metrics within our data to improve forecasting. Data flow analysis can also help solve one of the biggest issues today – having the right inventory when you want it, where you want it. A more integrated and agile supply chain will require less inventory, lessening the costs and environmental footprint.

How is Maersk tackling decarbonization?

Last year Maersk advanced its net zero goal from 2050 to 2040, but we also set intermediate targets: By 2030, we plan to see 25% of our cargo shipped using green fuels and 30% of our air cargo using Sustainable Aviation Fuel (SAF). All of our investments are bound to our sustainability vision. For instance, both of our warehouses in Singapore received the BCA accreditation. Moreover, Maersk already offers EcoDelivery for green fuel ocean transportation paid for by customers. We have already ordered a large fleet that works on green fuel, investing in next-generation container vessels for green methanol.