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Maersk CEO Calls For End to Shipping Subsidies

Maersk CEO Calls For End to Shipping Subsidies
Costas Paris April 26, 2018

Soren Skou, head of the world’s biggest container ship operator, says government backing of carriers is creating overcapacity, distorting markets and pricing

AP Moller-Maersk AMKBY 0.64% A/S Chief Executive Soren Skou is calling for governments to withdraw their financial support for container shipping lines, saying subsidies and other backing are causing overcapacity and profit-crushing price reductions across the maritime industry.

“I don’t think any government needs to throw money at container shipping, building ships that are not needed,” Mr. Skou told a maritime conference in Singapore.

Denmark-based AP Moller-Maersk operates Maersk Line, the world’s biggest container shipping line by capacity, and a pioneer in the use of so-called megaships—massive vessels capable of carrying around 20,000 twenty-foot containers.