Maersk Reorganizes Logistics Segment as Profit Margins Disappoint

In a move to address underperformance in its logistics business, Danish shipping giant Maersk announced plans to reorganize its Logistics and Services segment into three distinct product divisions. According to a report from the *Journal of Commerce*, the reorganization reflects the 'sensitivities' around this division, which is a key component of Maersk's integrated end-to-end strategy launched in 2017. The company has struggled to meet profit margin targets for its logistics operations, which have fallen short of expectations. By splitting Logistics and Services into three product segments - Logistics, Terminals, and Services - Maersk aims to provide more transparency and accountability for this critical part of its business. The move comes as the company faces headwinds in the global logistics market, with supply chain disruptions, inflationary pressures, and softening demand impacting profitability. 'This reorganization signals that Maersk recognizes the need to sharpen its focus on logistics to drive improved financial performance,' said industry analyst Lars Jensen of Vespucci Maritime. 'As the company works to optimize its end-to-end offering, getting the logistics piece right will be essential.' The changes to Maersk's logistics division are the latest in a series of strategic moves by the shipping behemoth as it navigates the evolving global trade landscape. With this reorganization, the company is doubling down on its commitment to provide customers with seamless, technology-enabled logistics solutions - a key differentiator in an increasingly competitive market.