A.P. Moeller-Maersk, an integrated container logistics company operating in 130 countries, announced the launch of Maersk Air Cargo this week.
The new air freight company is the result of the existing in-house aircraft operator, Star Air, which has transferred activities into Maersk Air Cargo. The new carrier will support existing and new customers and Maersk’s end-to-end logistics.
According to the Maersk website, the move came in response to customers’ global air cargo needs.
“Air freight is a crucial enabler of flexibility and agility in global supply chains as it allows our customers to tackle time-critical supply chain challenges and provides transport mode options for high value cargo,” Global Head of Logistics and Services, Aymeric Chandavoine, said.
As a standalone service, Maersk Air Freight is designed to make supply chain journeys more resilient and intuitive, helping customers make the most of opportunities by getting their air cargo to the right place at the right time, the company explains.
“Maersk Air Cargo is an important step of the Maersk Air Freight strategy, as it will allow us to offer customers a truly unique combination of air freight integrated with other transport modes,” Global Head of Air & LLC Torben Bengtsson said. “We see an increased and continued demand for air cargo both today and going forward as well as growing demand for end-to-end logistics, which is why it is important for us to strengthen our own-controlled capacity and advance further on our air freight strategy.”
A.P. Moller-Maersk is one of the holdings in the U.S. Global Sea to Sky Cargo ETF (SEA), which provides investors diversified access to the global sea shipping and air freight industries.
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Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Because the funds concentrate their investments in specific industries, the funds may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The funds are non-diversified, meaning they may concentrate more of their assets in a smaller number of issuers than diversified funds. The funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The funds may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the funds may diverge from that of the index. Because the funds may employ a representative sampling strategy and may also invest in securities that are not included in the index, the funds may experience tracking error to a greater extent than funds that seek to replicate an index. The funds are not actively managed and may be affected by a general decline in market segments related to the index. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, such as China and/or Taiwan, a regional ETFs returns, and share price may be more volatile than those of a less concentrated portfolio. Cargo Companies may be adversely affected by downturn in economic conditions that can result in decreased demand for sea shipping and freight.
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