Maersk rebrands North American e-commerce unit for “simplified and connected” logistics

Danish container logistics giant Maersk has rebranded its North American e-commerce business unit as it seeks to sign up more international retailers for its portfolio of ‘end-to-end’ connected logistics services, including transportation, warehousing and last-mile delivery.

In the re-branding move, Visible Supply Chain Management (Visible SCM) – a US-based parcel delivery and B2C fulfilment services company acquired by Maersk in August 2021 – will now be named as Maersk E-Commerce Logistics. Visible SCM was acquired for US$838 million alongside the US$86 million purchase of Dutch-based B2C Europe Holding last year.

The news follows a headline-making spree of acquisitions carried out over the past eight months as Maersk aims to become an end-to-end logistics provider with a more diversified revenue base.

International deals

In October the company also acquired HUUB, a Portuguese cloud-based logistics start-up specialised in technology solutions for B2C warehousing for the fashion industry, and in January this year the firm sealed a US$3.6 billion deal to acquire LF Logistics, a provider of omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region.

The acquisitions have been possible thanks to Maersk’s record financial results in 2021. Last year, revenue was up 55% to US$61.8 billion while EBITDA tripled to US$24 billion and free cash flow was US$16.5 billion.

Maersk is now finalising the acquisition of US transport and final-mile delivery firm Pilot Freight Services for US$1.68 billion. This acquisition is subject to regulatory review and approval which is expected to be obtained by Q2 2022.

Two become one

Since August 2021, Maersk and Visible SCM have combined their expertise and products and services to create one e-commerce fulfilment and parcel delivery company in North America. Visible SCM branding, including its subsidiary brands PC Synergy and TriCon, officially retired on March 18, and the nine fulfilment centres and various corporate offices across the region will now physically rebrand their facilities to Maersk.

Casey Adams, Head of E-Commerce Logistics for Maersk in North America, said: “We feel proud to contribute to the strength of the Maersk brand in North America with our reputation for excellence in e-commerce. The Maersk name is built upon a century of service and trust, which are values at the heart of our efforts to serve customers since 1992.”

Narin Phol, Regional Managing Director of Maersk North America, added: “The team at Visible is vital to realizing Maersk’s vision for simplified and connected supply chains. Visible’s integration into Maersk represents yet another level of opportunity for customers to optimize their supply chains for competitive advantage on a global scale.”

According to Maersk, the integrated products and services under its E-Commerce Logistics (ECL) portfolio will “help customers maintain the fast-changing consumer buying patterns by offering e-delivery and e-fulfilment products that will provide end-to-end transparency and competitive access to a global network.”

“With the complete integration and development of Maersk ECL, we will extend our integrated logistics offering deeper into our customers’ supply chains under one brand which ultimately helps our customers associate Maersk with an end-to-end logistics experience from factory to sofa,” added Charles van der Steene, Head of Sales & Marketing for North America.

According to the newly-launched ‘Maersk E-Commerce Logistics’ web page, the business will primarily offer ‘Maersk E-Fulfilment’ services using its warehousing networks and ‘Maersk E-Delivery’ services, in cooperation with “all major last-mile carriers’, including DHL and FedEx.

Expansion in UAE

Meanwhile, outside of acquisitions and growth in the US and Europe, Maersk is also strengthening its presence in the UAE with the opening of a new 10,000 sqm warehousing and distribution facility in Dubai. According to Richard Morgan, Regional Managing Director, Maersk West and Central Asia, the new facility strengthens Maersk’s commitment towards its customers in the Middle East.

The new facility, which opened last week (March 17), is located at DP World’s trade and logistics hub, Jafza, and will cater to commodities across petrochemical, retail and lifestyle, fast moving consumer goods (FMCG), technology and automotive sectors, amongst others. The facility is set to feature solar panels on its rooftop producing approximately 434 MWh/year of clean energy which will reduce more than 1,700 tonnes of carbon emissions over 10 years, according to Maersk.

The Maersk Integrated Logistics Centre in Dubai will be an addition to the existing global footprint of over 250 warehouses, 85 of which were opened in 2021 alone, covering 1.5 million sqm across 50 countries.

In addition, a separate US subsidiary, Performance Team, last week announced plans to open a large-scale cold storage facility for frozen and fresh commodities in Houston this coming August.