\Maersk is full of confidence in the Chinese market, and the strong competitiveness and resilience shown by Chinese companies in both domestic and overseas markets are key factors for Maersk to continue investing in Chinese customers.\ On May 27th, Maersk Greater China President Ding Zejuan made the above statement during a group interview with media outlets including The Paper.

Maersk Greater China President Ding Zejuan

This year marks Maersk's 101st year of service in the Chinese market. According to Ding Zejuan, Maersk currently has offices in more than 70 cities along the coast and inland areas of China, with approximately 16,000 employees. It has also established three major global information sharing centers in Chengdu, Chongqing, and Qingdao. In 2024, the Greater China region's related revenue (including shipping, logistics, and container terminals) exceeded 20 billion US dollars, with business covering various fields such as automotive, retail, cross-border e-commerce, high-tech, and energy chemicals.

The recent fluctuations in China-US tariffs have continuously impacted the stability of the trans-Pacific shipping network. During the period of tariff increases, some shipping companies, due to a significant decrease in cargo volume, took measures such as withdrawing ships and suspending voyages. After the tariffs were reduced in mid-May, the US routes quickly experienced a surge in bookings, leading to a doubling of freight rates, posing challenges for shipping companies in terms of flexibility in adjusting their capacity.

Ding Zejuan introduced to the reporter of The Paper that currently, the China-U.S. cargo volume accounts for a relatively small proportion in Maersk's global volume, about 5%. Since April this year, the impact of tariff fluctuations on the U.S. line has gradually become apparent, with the cargo volume on Maersk's route at the end of April dropping by 30 to 40 percent compared to the beginning of April. To ensure customer and supply chain stability, Maersk did not arrange empty or withdrawn ships on the U.S. line during this period, but instead replaced large ships with smaller ones, and alleviated the shortage of empty containers by increasing the intensity of empty container return transportation and market rental boxes, to meet customer needs.

Ding Zejuan further revealed that after the \May Day\ Golden Week, the booking volume for the American line has increased significantly. In the process of drastic market changes, although Maersk has already initiated adjustment measures, it is limited by the lag in capacity allocation, resulting in some containers being left behind or booked positions that cannot be executed. It is expected that in the coming weeks, the company will reasonably increase capacity to transport the backlog of goods for customers, while strictly controlling the scale of the positions. \The most important thing is that we do not want to carry goods that cannot be transported out, so we will strictly control the positions during this period.\

\The adjustment of Maersk's capacity will inevitably lag behind customer demand. In adjusting the capacity for the US route, we will closely follow customer needs, take one step at a time, and adjust in a timely manner.\ Speaking of capacity planning for the US route during periods of tariff fluctuations, she pointed out that the adjustment of ocean transportation capacity is mainly based on two considerations: one is the duration of sustained demand, and the other is the scale of effective market supply and ship repositioning efficiency. In mid-May of this year, Maersk informed reporters from The Paper that they are increasing capacity for the US route, and the number of bookings is also continuing to increase.

Additionally, Ding Zejuan pointed out that during the period of tariff fluctuations, the cargo volume in Latin American and African markets, especially in Southeast Asia and the Middle East, has increased significantly, effectively hedging the impact of fluctuations in a single route, and the overall cargo volume has not been significantly impacted. Regarding the buffering mechanism under tariff fluctuations, she stated that Maersk prioritizes ensuring the timely shipment of customers' goods to avoid the multiplication of logistics costs due to delays in time nodes. At the same time, the team will assist customers in optimizing industrial layout and logistics network planning, and by providing mature case references, help customers build a more complete, long-term, and strategic logistics network layout system.

Ding Zejuan emphasized that Maersk had established a strategy of \no longer blindly expanding capacity\ seven or eight years ago, focusing on the replacement of old ships, energy efficiency improvement, and investment in carbon-neutral ships and low fuel consumption technology. At the same time, in response to the dynamically changing market environment, companies will make flexible tactical adjustments to capacity.

\Meet the soldiers with generals, and the water with soil; no one can predict the future, but what we can do is to closely follow our customers and adjust at any time.\ Speaking of the future development of shipping, Ding Zejuan said that in the face of uncertainties such as tariffs and geopolitics, Maersk's core strategy is to ensure stable transportation with high punctuality and to improve service efficiency through digitalization.

\Punctuality is our core competitiveness,\ Ding Zejuan revealed that Maersk's specific goal this year is to improve the punctuality rate of east-west trades to over 90% through cooperation with Hapag-Lloyd's Gemini Network. The alliance officially launched in February this year and has now fully completed the transition, with the expectation of achieving a punctuality rate of over 90% in the second half of the year. However, judging from the punctuality rate data in the first few months of this year, the goal has essentially been achieved ahead of schedule.

Ding Zejuan introduced that improving the on-time rate can significantly reduce the backlog of unsold inventory and capital accumulation for companies. Maersk has also clearly observed that many high-end electronic product and consumer goods customers are shifting from air transport to sea transport, considering switching to Maersk's sea transport services and products. In terms of regional layout, in addition to deeply cultivating the Chinese market and deepening coastal and inland services, Maersk will also focus on connecting with overseas networks, concentrating on cross-border customer needs, and not engaging in pure domestic trade business.

In the air freight business, Ding Zejuan told reporters from The Paper that the United States canceled the duty-free policy for small packages from China in May, which has had a certain impact on Maersk's air freight market in China. Given that China's e-commerce exports account for a higher share in the global e-commerce market, this policy adjustment directly changed the market supply and demand relationship, leading to a downward trend in air freight rates between China and the United States.

Ding Zejuan also pointed out that due to the tariff policy still being in a dynamic adjustment phase, there is a possibility of market demand rebounding in the future, and Maersk is adopting a dynamic strategy to cope with changes.

Despite facing multiple uncertainties, Maersk still plans to increase its air freight capacity layout in China to match market demand. According to Ding Zejuan, on the one hand, it will strengthen the expansion of routes from the South China and West China markets to emerging markets such as Latin America, the Middle East, and Southeast Asia; on the other hand, it will continue to optimize internal operational processes, enhance transportation efficiency, reduce operational costs, and strengthen its competitiveness in the air freight market.

\The current global supply chain is longer and more complex, showing a trend towards regionalization and fragmentation, becoming increasingly complex and unpredictable.\ Ding Zejuan believes that companies are integrating their supply chains within the region or diversifying their layout, tending to disperse risks.

When it comes to the reaction of customers to tariffs, Ding Zejuan said that, according to her observation, during the recent period of tariff fluctuations, most Chinese foreign trade companies are in a passive state of waiting, waiting for the final results of the China-US negotiations; a small number of companies have actively laid out, adjusting their industry and logistics networks, such as planning multiple supply chain solutions. Maersk, through close communication, provides customers with \alternative plans\ to help them quickly switch paths according to policy changes.