b'26American Journal of Transportation ajot.comMaersk announces a more integrated company(DERECHOcontinuedagreement,anationisnt from page 8) allowed to subsidize a specific to serve customers better gasolinedemand.Withinacommodity over a 5% thresh-year,biofuelpolicyallowsold of the total value in a single Maerskhascommuni- booking, pricing, customer ser- the end of the year. ethanolmandatestofallyear.InthecaseoftheUS, cated brand specific customervice and liner network aspects.Airfreight: Allairfreightwithunanticipateddemandthe USDA estimates that farm advisories related to the stra- The Safmarine team andcontractsremainintactanddeclines,cuttingdomesticsales in 2019 crop year will be tegicintegrationofSafma- its passion for customers willMaersks goal is to grow itsbiofuel use. Falling oil pricesapproximately $378 billion put-rine and Damco into MaerskbeinfusedintotheMaerskair freight business further toalsoprovideheadwindstoting the threshold around $19 to improve its customer expe- brand starting October 1, 2020strengthentheircustomersethanolexports. Asaresult,billion. While not all programs rienceandend-toendser- and the brand will be discon- air freight performance. corn used for ethanol produc- count against the cap,Agri-vicedeliverymodel.Thesetinued by the end of the year.LCL: Maersk wants to growtion for 2019/20 is the lowestculturalRiskCoverage,Price changesarealignedwiththis business through existingsincethedroughtyearofLossCoverage,cropinsur-Maersksgoalofbecomingd amCo channelsandwillintegrate2012/13, when corn suppliesance premium subsidies, MFP, the global integrator of con- Effective October 1st, Dam- LCLintoitsLogisticsandwerethelimitingfactor.andsomeCoronavirusFood tainerlogistics,connectingcos air and less than containerServices suite of products. Withoutsupport,switchingAssistance Program, or CFAP, NVOCC:SinceMaerskcropsistheonlyalternativepaymentscouldpotentially will be using its own assetsbut that doesnt take care ofcount, putting the US over the to offer unique value propo- the here and now. WTOcap.EstimatesputUS sitions, they will not pursueOfcourse,thereisthegovernment assistance to farm-the ocean full container loadlingeringproblemwiththeers at over $34 billion for 2019 (FCL) multi-carrier NVOCCChina-US trade deal: Beijingand the prospects for US farm productasageneraloffer- (or Washington) can turn offsubsidies exceeding the cap in ing. Where possible, currentthetapjustasquicklyasitthe 2020 crop year appear all NVOCCcustomerswillbewas turned on, leaving Mid- but assured.offered Maersk.com or Twill. westfarmersvulnerabletoWhiletheagricultural Maerskwillensureanyplantingforamarketthatsubsidies arent going to be up contractual agreements todaymight vanish overnight. Andfor WTO review until after the with its DAMCO customersfindingalternativestotheyear 2022 the first year when are met. China market wont be easy. the US will have to report the and simplifying their custom- load(LCL)offeringwillbeWhat is not changing as partAnotherconcernisthefigures. And it could be years ers supply chains. combinedwithMaersksof Maersks announcement: potential fallout from the farmbefore WTO makes a decision In North America, MaersklogisticsandServicesprod-While Maersk is presentingpayments themselves. While(considertheBoeingcase wants to summarize the changesucts to complement its end-to- a few changes, its also just asPerdue may want to weanagainst Airbus took 16-years). (andalsohighlight manyofend offering to customers. importanttohighlightwhatfarmersfromFedbailoutBut the fallout could be signif-their business areas that haveThisyear,thepandemicis not changing in the Northmoney both parties are intenticantastradepartnersunder no changes). hasclearlyshownthevalueAmerica region: on making sure the programsthe WTO would be allowed to The changes in SafmarineofDamcosstrengthinair Sealanda Maersk Com- continue unabated and well- put tariffs on a wide variety of and Damco are designed to:freight performance and LCLpany:Therearenochangesfunded.AswellintentionedUS exports such as vehicles,Strengthen its customers supplysothetimingwasrighttoto Sealanda Maersk Com- as the relief funding may be,drugs, electronics and even chains by removing handoffs. introduceamoresimplifiedpany organization and its ser- theprogramscouldleadtoagricultural products. Improve its customer expe- and customer centric ocean &vice to customers. problemswiththenationsAt this juncture, two years rience by simplifying multi- logistics organization to offer Brokerage: Maersk Customstrade partners.seems like a long time from ple connections points acrossastronger,moresimplified,HouseBrokerage,Vandegrift-Backin1994theWorldnow. And in the interim crops the Maersk organization. agilesupplychainserviceAMaerskCompanyandtheTradeOrganization(WTO)and markets could recover but Leveragethegeographicalto customers with less hand- KGH Brokerage acquisition.of which the US is a memberdown the line, there may well scale, trust and performanceoffs. TheDamcobrandwillW&D:MaerskWarehous- setanagreementthatcapsbe a price to be paid for prop-of Maersks ocean product. bediscontinuedandtransi- ing&DistributionandPer- trade-distortingsubsidiestoping up the agricultural sectorExpand its logistics and ser- tion to the Maersk brand byformance Team. agricultural.UndertheWTOin the Midwest.vices products to create more efficiency of use and compet-itive advantage.The Safmarine brand, busi-ness activities and organization willtransitionintoMaerskto becomeonefrontlineorgani-zation servicing our combined customerswithanintegrated product and service offering.Maerskisdoingevery-thing possible to continue the renowned Safmarine customer experience within the Maersk brand. In fact, the Safmarine North America customer ser-viceteamisalreadybased inTheWoodlands,Texas officein the same office as the Maersk customer service team so they have planned a smooth integration that keeps Safmarine talent.Safmarines success as an African regional line has been strongandconsistentthrough the years. The company already makes heavy use of the Maerskcustoms brokers&freight forwardersOceannetwork-soitwasa naturalfittointegrateitintowww . jfmoran.com: 800.944.1041the Maersk brand to achieve an easier customer interface from'