AP Moller-Maersk has seen a 90% jump in the use of its digital platforms as a result of the Covid-19 pandemic.

But only a proportion of that will be handled by its latest shipments portal, which the leading liner operator has just introduced to the container market.

This is because the Danish carrier is investing in a range of digital portals designed to appeal to shippers of different sizes and interests.

The carrier currently operates five or six digital portals under different guises, including Maersk Spot, Twill and Captain Peter.

These have been joined by a further offering, Maersk Flow, which was unveiled in late July.

The new portal targets medium-size shippers as the carrier rejects a one-size-fits-all approach to digital needs.

Maersk argues the portal will simplify container transport, reduce turnaround time, cut costs and boost transparency.

But that is a familiar refrain, according to Sea-Intelligence Consulting chief executive and partner Lars Jensen.

It has been used to justify every kind of transportation tool launched by carriers over the past 20 years, he argues.

The challenge for the next generation of portals, such as Maersk Flow, comes down to their execution of container shipments.

"Is there something tangible it does that is better than the predecessors?" he asked.

Lars Jensen, chief executive and partner at SeaIntelligence Consulting. Photo: MartimeSecurityTraining.com

Homework

Maersk believes it did comprehensive research before the launch of its latest digital tool.

It asked about 100 midsize shippers about the challenges they faced.

Maersk Flow targets medium-size businesses that typically ship between 200 and 2,000 containers per year.

"It’s a journey started a year ago when we saw these medium-size companies were really struggling," said Martin Holme, Maersk's global head of supply chain management and e-commerce logistics.

"Shipping and logistics is not their core business — so often they didn't have any tools."

"They were using emails and Excel to manage supply chain. It was time-consuming, error prone and reactive."

"It led to poor visibility, lack of control over their supply chain, and negative surprises for themselves and customers."

Coronavirus boom

The pandemic has reconfirmed the view that small and medium-size shippers need a tool to control their shipments.

Many of Maersk's container shipping clients initially went into crisis management after the outbreak of coronavirus, but have since re-emerged to find they needed more control over their shipments, Holme said.

Some of Maersk's portal portfolio

Maersk.com: Maersk’s official website is a single platform for online quotes, instant booking confirmation, managing and tracking shipments, free time calculation, tariff enquiry and live chat.

Maersk Spot: Digital pricing for guaranteed loading, which turns out to be extremely important in current uncertainties.

Twill: Designed for smaller and less experienced shippers.

Maersk Shipment and MyFinance mobile apps: Enable customers to perform all necessary transactions remotely while on the move.

Maersk Flow: Launched in July for midsize shippers handling between 200 and 2,000 containers a year.

Captain Peter: A 'visibility tool' launched in December to help shippers track what is happening to reefer cargoes throughout their journey.

"With Covid-19, you need to be able to respond and take action quickly, and to do that you need the control and visibility that shippers were lacking," he said.

This is reflected in the use of Maersk's various digital portals, which are estimated to have increased by about 90% since last year.

Measured by revenue generated, Maersk's portfolio of digital portals is among the largest online business-to-business offerings in the world, Maersk spokesman Christian Kjaergaard-Winther said.

It faces plenty of competition from other carriers in the race to build a door-to-door container shipments network, not least from CMA CGM, which last year acquired Ceva Logistics.

Last week, Hapag-Lloyd rolled out its own product designed to deal with problems of cargo being rolled.

A rival to Maersk Spot, it promises to avoid rolled cargo, which leads to disadvantages such as delayed cargo, more administrative work and additional commercial cost.

Diversity

The bewildering array of digital portals reflects the diversity of shippers.

Carriers have discovered they need to provide multiple tools directed towards different customers with different needs.

"Whether you are a Nike, a Kuehne & Nagel or an auto mechanic importing one box a year, your needs are different," Jensen said.

It is unlikely Maersk Flow will appeal to larger shippers, who will focus on managed contracts, Holme said.

Neither does it target smaller shippers that only import one or two boxes a year, for whom the Twill portal is designed.

But taken together, the bevy of portals contribute to Maersk's long-term strategy for the digitalisation of its supply chain.

Some see that as a response to the perceived threat from players from outside shipping.

There has been speculation for some time that a major shipper, such as Amazon, may take on the job of being its own carrier.

But Maersk has strengthened its position against that threat by acquiring relevant businesses.

This includes the US-based warehousing and distribution company Performance Team and KGH Customs Services of Sweden, a specialist in trade and customs management services in Europe.