Shipping group Maersk to buy US warehousing firm

Danish shipping giant to buy Performance Team in $545m deal

A Maersk Line shipping container. AP Moller-Maersk is looking to generate more of its income from inland logistics. The company earned 80 per cent of its revenue in 2018 from ocean transport. Reuters

Danish shipping group AP Moller-Maersk said on Wednesday it had agreed to buy US warehousing and distribution company Performance Team as part of plans to deliver more customised logistics solutions.

Maersk said the the value of the deal is $545 million (Dh2bn), including lease liabilities of around $225m.

The world's largest container shipping company aims to boost its earnings from its inland logistics operations, or non-ocean business. In 2018, the ocean transport business accounted for almost 80 per cent of core earnings.

"This will strengthen our ability to deliver products and solutions that meet our customers' end-to-end supply chain needs," said Vincent Clerc, chief executive of Ocean & Logistics at Maersk.

While Maersk moves around one in five containers shipped at sea, it handles land transportation from ports to warehouses and distribution centres for less than a quarter of its customers.