Maersk to Merge Logistics Units
The A.P. Moller-Maersk Group will merge its two supply-chain management subsidiaries, Damco Sea & Air and Maersk Logistics, into one company on July 1 under the single brand name of Damco.
The new Damco, which will be headquartered in Copenhagen, will have a global network of local branch offices with some 3,600 employees in more than 90 countries offering ocean freight, air freight, and land-based services such as trucking, customs clearance, and document management.
The A.P. Moller - Maersk Group acquired Damco Sea & Air in 2005 in connection with the acquisition of P&O Nedlloyd. Damco Sea & Air was the forwarding arm of P&O Nedlloyd and was established in 1988.
Besides supply-chain management services, Maersk Logistics has been providing freight-forwarding services for a number of years, since 2001 under the name of DSL Star Express. Together with Maersk Logistics" air freight and land-based services, DSL Star Express will be renamed Damco on July 1.
Damco's customers include prominent multinational companies from the retail, apparel, electronics and chemicals industries, as well as small independent importers and exporters.
Maersk Logistics and Damco last year handled 587,000 TEUs of ocean freight and 60,294 metric tons of air cargo. Their combined revenue in 2008 was almost $3 billion.