The company’s competitors can hardly boast of the same business areas.
Danish Maersk is one of the largest shipping companies and will celebrate its 93rd anniversary this year. Peter Märsk Möller and his son Arnold Peter Möller started their business by shipping cargo, their descendants added air transportation, an IT company, medical equipment Production and so on.
Therefore, in October 1976, his son Arnold was born in the family of Dane Peter Möller and his wife American Chastain McKinney. From a young age, I knew what ship he was rumored to be-his father Peter was the captain of that ship.
In 1904, Peter Möller founded Aktieselskabet Dampskibsselskabet Svendborg in Svendborg, Denmark, and purchased the first steamboat with a displacement of 2,200 tons, calling it Svendborg.
There is a seven-pointed star on the ship, which will be famous all over the world with the Maersk logo in the future. In 1910, Melers already owned 6 ships.
In August 1912, when Arnold was already involved in the family business, he and his father founded the second shipping company Dampskibsselskabet, founded in 1912 and headquartered in Aktieselskab, Copenhagen. The Meles people had no philosophy, they decided to use the same seven-pointed star for their second cause and put it on the flag.
In 1913, Arnold’s wife Christina gave birth to a son named Mersk McKinney Meller. But a year later, when the First World War broke out, many private companies ended, but Melles continued to operate the shipping business, and by the end of the war, they consolidated their position in the maritime market. Although the company continued to operate, Arnold realized that a one-way flight would not have a huge economic impact, so he began to consider how to increase traffic.
He believes that maintaining the production line is the road to prosperity for shipping companies. In 1928, Arnold was awarded a contract to provide auto parts to the fast-growing Ford Company. In July 1928, the first Maersk with auto parts sailed from Baltimore to the Far East. In the same year, the company started using the name Maersk, the maiden name of Peter Möller’s mother.
While Arnold Möller was developing his business, his son Mersk grew up and joined the family business, and became a partner of the company in 1940, when he was 26 years old. After working in his father’s company for three years, Mersk became a true leader. In 1943, he founded Interseas Shipping Co., Inc. in the United States. In the United States, Mersk worked for a long time-World War II began, and in 1947 he had to return to Denmark to work in a family business.
The shipbuilding division of AP Moller got a boost in the mid-1950s when the contract built a 50,000-ton tanker for a California transportation company. However, the Oden factory was too small to accommodate ships of this size, so Mellers began building a new factory in 1957.
Although shipping is still at the core of AP Moller’s business, the company began to diversify in the 1960s. The first step in this direction is the acquisition of auto parts supplier Roulunds Fabriker. For APMøller, it is even more important that the company obtained an exclusive concession for oil and gas exploration and production in Denmark in 1962.
The company established a new subsidiary, Maersk Oil and Gas, which has formed a joint venture with Texaco and Shell, called the Dansk Undergrunds Consortium (DUC). By 1972, DUC managed to start commercial production, the level of which exceeded 500,000 barrels per day in a short time, and the natural gas output was 1 billion cubic meters per day. Olie og Gas then started working in Qatar and Algeria.
In 1964, AP Moller developed a new business direction by purchasing the F. Salling A/S supermarket chain. The division was renamed Dansk Supermarked and became the second largest retail group in Denmark.
Arnold Peter Möller died in 1964 and was succeeded by his son Mersk in the same year, who continued to diversify AP Moller.
In 1968, the company acquired Phama-Plast, a manufacturer of disposable plastic medical products, and renamed it Maersk Medical after the deal was concluded.
Two years later, AP Moller founded Maersk Air, which switched routes from Falk Air. Maersk Airlines entered the air travel market in 1970 with three new Fokker F-27 Friendship aircraft. In 1973, its air fleet added five Boeing 707-720B aircraft.
No one thought that AP Moller would shift from the logistics field to the IT field, but in 1973, Maersk-IT appeared in Denmark.
In 1972, the company added to its list of activities the production of drilling rigs owned by AP Moller for the development of oil and gas fields.
The development of natural gas production led to the establishment of the entire fleet of special tankers.
Ten years later, AP Moller went public, bringing Aktieselskabet Dampskibsselskabet Svendborg and Dampskibsselskabet Svendborg and Aktieselskab’s stock after 1912 to the Copenhagen Stock Exchange, but the control of AP Moller still belongs to the Meller family.
The company continued to expand throughout the 1980s. For example, in 1985, AP Moller acquired Norfolkline, a door-to-door logistics company. In 1988, with the increasing popularity of container transportation, AP Moller built new Panamax container ships in Odense, hence the name because they can pass through the Panama Canal.
Mersk Möller retired in 1993, and APMöller continued to expand.
The company acquired the Baltic Shipyard in Lithuania in 1997 and the Volkswagen plant in Stralsund, Germany in 1998.
The downturn in the global shipping market in 2001, coupled with the oversupply of containers due to lower shipping prices, led to fewer flights, and Maersk was in trouble. In order to cut costs, AP Moller announced plans to divest many non-core assets including auto company Roulunds and subsidiary Maersk Medical.
In 2009, the company closed the shipyard in Odense and sold the Lithuanian shipyard, and then withdrew from retail. The last 19% of the supermarket chain Dansk Supermarked Group’s shares were sold in 2014.
In 2011, Maersk ordered 20 container ships with a length of 400 meters and a capacity of more than 18,000 tons from South Korea’s Daewoo Shipbuilding and Ocean Engineering Company. The contract value is US$190 million per ship. This is one of the largest orders in the company’s history.
Six years later, AP Moller sold its oil production subsidiary Maersk Oil to the French company Total SA for $7.45 billion, and Maersk Tankers (which was engaged in tanker transportation) sold to AP Moller Holding for $1.17 billion.
In 2019, AP Moller-Maersk’s revenue fell by 0.9% compared with 2018, reaching 38.9 billion U.S. dollars, and it has a fleet of 708 ships. By the end of the second quarter of 2020, the company’s revenue had fallen by 6.5% to US$9 billion. This was due to the reduction in container shipping business and the number of tankers and ships unchanged.