Cost reduction 'not sustainable'

Cost reduction was at the centre of Maersk Line’s recorded profit of US$1.5bn for 2013, SA MD Jonathan Horn told FTW last week. The line was able to reduce costs by over 8% while freight rates decreased by 7.4%. “We have therefore been successful in taking out cost faster than rates have gone down through efficiencies of our vessels,” said Horn, “but it’s not sustainable in the long term.” Read more about Maersk Line’s outlook for the shipping industry in the year ahead on page 6. CAPTION Jonathan Horn