Maersk willing to pay price for long-term dominance

Copenhagen

THE chief executive officer of the world's largest container line says he's willing to lose money in the short term in exchange for longer-term market dominance.

Maersk Line's decision to go for market share in an unprofitable third quarter might "seem strange", but "you need to consider the alternative", CEO Soren Skou said in a phone interview. "The industry is consolidating and in such a situation you have to make sure you keep growing so you don't lose your market-leading advantage." "In the long term, the winners in this business will be those with the lowest costs, and low costs are achieved through scale," said Mr Skou, who's also the CEO of Maersk Line's parent, Copenhagen-based AP Moller-Maersk A/S. "We want our market share to grow organically every year."