Maersk’s Full Stack Strategy and the Risk of Owning Everything
In the last five years, A.P. Moller–Maersk has done something few legacy companies attempt: it tried to reinvent its entire business model.
Not by chasing software margins or outsourcing core operations—but by going in the opposite direction. But by owning everything.
From 700+ vessels that carry nearly 17% of the world’s container trade, to more than 450 warehouses, its own air cargo division, 60+ port terminals, and proprietary customs and visibility software—Maersk isn’t just participating in global logistics. It’s trying to orchestrate it. The company calls it “end-to-end logistics.” What they’re building is a global operating system—one that stretches from factory floor to retail shelf.
It’s one of the boldest bets in modern supply chain history. And like most bold bets, it’s starting to show cracks.
In 2022, Maersk posted a record $29 billion in operating profit. A year later, as freight rates normalized, that number fell to $3.9 billion—an 86% collapse.
The fixed costs that supported Maersk’s integrated empire didn’t vanish when the market turned. And with competition intensifying across every layer of the stack—from Amazon and Flexport to DHL and Alibaba—Maersk now finds itself in the middle of a different kind of race: not just for scale, but for relevance.
This is the story of how one of the world’s most asset-heavy logistics companies is trying to become its most agile. And whether integration is a moat—or a trap.
Historical Context and Timeline of Evolution
Maersk began in 1904 as a single steamship operation out of Svendborg, Denmark. Over the next century, it built itself into a maritime giant, capitalizing on containerization, port investments, and scale.
By the 1990s, Maersk was among the top global container carriers.
From 1999 to 2005, it cemented its dominance by acquiring Sea-Land Service and P&O Nedlloyd, two of the most recognized players in international shipping.
By 2005, Maersk had become the largest container shipping company in the world.
But by the early 2010s, container shipping had entered a phase of overcapacity and consolidation. Spot rates plummeted, new mega-ships entered service, and the gap between fixed operating costs and fluctuating demand eroded margins across the industry.
Between 2010 and 2016, the industry’s average operating margin hovered between 0% and 3%, with most carriers unable to cover their cost of capital. This forced Maersk to look beyond the vessel.
In 2016, Maersk formally announced its intent to become an integrated container logistics company. The idea: move from being a shipping vendor to being a full-service logistics partner. That same year, it restructured into two arms—Transport & Logistics and Energy—a prelude to divesting its oil and drilling businesses.
In 2017, Maersk sold Maersk Oil to Total for $7.5 billion, completing its pivot to logistics. The company stated publicly that the future of the business would lie in managing global supply chains—not in extracting hydrocarbons.
From 2020 to 2022, it went on a logistics acquisition spree:
Performance Team: U.S.-based warehousing and distribution firm (2020)
Visible SCM: U.S. last-mile logistics (2021)
Senator International: global air freight forwarding (2021)
LF Logistics: Asia-based contract logistics and fulfillment (2022)
Each acquisition filled a key capability gap—warehousing, final mile, air freight, and regional density—giving Maersk greater control over end-to-end cargo movement.
By 2022–2024, Maersk began transitioning from infrastructure builder to ESG leader:
It ordered 25+ methanol-powered container ships to reduce carbon output
Introduced carbon tracking dashboards and emissions offset services
Launched Maersk Flow and Twill, aiming to digitize the customer interface and serve both enterprises and SMEs
This phase marked Maersk’s transition into a platform-led logistics business with both physical and digital infrastructure under one roof.
Anatomy of the Full Stack in 2024
By 2024, Maersk’s logistics stack is unlike any other in the industry. It combines the global reach of a traditional carrier with the infrastructure footprint of a 3PL and the software ambition of a visibility platform.
Ocean Freight: Maersk operates over 700 vessels, making it the second-largest container carrier globally with a fleet capacity exceeding 4 million TEUs. It handles roughly 17% of global container trade.
Port Operations: Through APM Terminals, Maersk owns and operates more than 60 port terminals around the world, including major hubs in Rotterdam, Tangier, and Port Elizabeth.
Warehousing: With over 450 warehouses spanning 80+ million square feet, Maersk has built a dense footprint to support distribution, e-commerce, and value-added services like kitting, returns, and inventory management.
Air Cargo: Via Maersk Air Cargo, the company operates its own aircraft and leases capacity to support time-sensitive shipments across transatlantic and intra-Asia lanes. The unit connects major manufacturing zones in Europe and Asia with retail and pharma hubs in North America.
Customs Brokerage: Maersk provides customs clearance in over 100 countries, helping customers navigate complex cross-border regulations with digital documentation and in-house compliance experts.
Beyond the physical network, Maersk is also building a digital layer:
Maersk Flow: A visibility and supply chain management tool for enterprise shippers. It includes predictive ETA, order tracking, inventory status, carbon emissions reporting, and API integration into ERPs and TMS platforms.
Twill: A self-service booking platform tailored for SMEs. It simplifies freight quotes, bookings, and documentation—essentially providing a Flexport-style front-end backed by Maersk’s infrastructure.
The goal isn’t just to move freight. It’s to manage the flow of goods and data with full accountability, end to end. It’s an ecosystem that goes well beyond vessels—and it’s designed to lock in customers not just with service, but with integration.
Why This Strategy Made Sense
For decades, Maersk operated at the mercy of volatile global freight markets. Between 2010 and 2016, container shipping was locked in a brutal price war driven by overcapacity and falling demand. Operating margins across the industry hovered near zero, and Maersk—even as a dominant player—struggled to generate sustainable returns.
The economics of being “just a carrier” were no longer working. And Maersk knew it.
The move toward a full-stack model was as much a survival decision as it was strategic vision. Here’s why it made sense:
Margin Expansion: Ocean freight has historically generated EBITDA margins in the 5–10% range in non-peak years. Contract logistics and warehousing, by comparison, often deliver 15–20% margins with longer customer retention and more predictable demand.
Customer Stickiness: Maersk’s enterprise shippers were increasingly looking for fewer partners and greater control. By owning more of the supply chain, Maersk could reduce handoffs, offer better SLAs, and win longer-term contracts.
COVID-19 Catalyst: The pandemic exposed just how fragile global supply chains were. Shippers began seeking resilience, transparency, and redundancy. Maersk capitalized by offering exactly that—with assets already in place.
Data as Differentiator: Integration wasn’t just about physical flow—it was about data. By controlling the origin-to-destination pipeline, Maersk could offer customers deeper insight into inventory, exceptions, and carbon impact—something brokers and freight marketplaces couldn’t replicate.
Strategic Positioning vs. Amazon and Flexport: As Amazon scaled its logistics network and Flexport pushed a digital-first narrative, Maersk’s move toward owning infrastructure gave it a counter-position: dependable, global, and asset-backed. Rather than compete on UX or price alone, Maersk could compete on stability and comprehensiveness.
The result was a logistics business that aimed to be less cyclical, more resilient, and better integrated with customer operations. Between 2019 and 2022, Maersk doubled its logistics and services revenue—from $6.5 billion to over $14 billion—and showed the market that it was more than a container line.
Strategic Rationale Behind the Stack
Responding to Volatility: Fewer handoffs mean fewer delays. Maersk wanted control of the chain to improve reliability, predictability, and response time during disruption.
Ownership Unlocks Visibility: When Maersk owns every node—vessel, port, truck, warehouse—it has full data visibility. That powers better forecasting, delay prediction, and proactive planning.
Enterprise Focus: The strategy is built around multinational BCOs (Beneficial Cargo Owners) who value seamless integration and accountability over piecemeal services.
Customer Lock-In Through Integration: By embedding Maersk into inventory systems, WMS platforms, and order workflows, customers become less likely to churn. Integration becomes stickier than pricing.
The strategy was working.
Until the cycle turned.
What’s Working So Far
Despite macro headwinds, parts of Maersk’s full-stack strategy are clearly delivering. In 2023, the company generated $14.2 billion in logistics and services revenue, more than double its 2019 total of $6.5 billion. That line of business now accounts for over 40% of group EBITDA, showing how far Maersk has diversified from pure ocean freight.
More importantly, Maersk has secured long-term integrated logistics contracts with blue-chip customers like H&M, Walmart, and Novo Nordisk. These aren’t transactional spot deals—they’re multi-year agreements that link warehousing, transportation, customs, and visibility into one unified offering.
And while the hype cycle around ESG in logistics has cooled, Maersk has kept spending. The company has invested over $2 billion in green fuels, carbon tracking tools, and ESG compliance reporting. It was one of the first carriers to order methanol-powered container ships and remains on track to reach its 2040 net-zero target.
Financially, Maersk’s strongest performance came during COVID, when global dislocation played into their integrated model. From 2021 to mid-2022, the company delivered record margins and service stability when most of the industry struggled with port delays, carrier capacity shortages, and unreliable ETAs.
What’s Not Working
But the freight cycle giveth, and the freight cycle taketh away.
In 2023, Maersk’s operating profit collapsed by 86%, falling from $29 billion in 2022 to just $3.9 billion. The core driver? A rapid collapse in ocean freight rates—especially in transpacific and Asia–Europe lanes. The same vessels that were cash machines in 2021 suddenly became cost centers.
That’s the catch with owning everything: it works brilliantly when demand is high. But when rates fall, an asset-heavy model can’t flex down. Fixed costs—fuel, maintenance, labor, depreciation—don’t disappear when volume drops.
Warehouse utilization also took a hit. Internal estimates suggest some markets dropped below 70% utilization, well below profitable thresholds. Meanwhile, Maersk’s global scale created organizational complexity, making it harder to adjust quickly to shifting demand, especially in regional markets.
The result? A model designed for control—but slow to adapt when conditions change.
Competitive Landscape: Challengers from Every Direction
Maersk’s challenge isn’t just internal. It’s facing pressure on all sides—from asset-light tech firms to vertically integrated disruptors.
Amazon Global Logistics is offering end-to-end services to third parties, with faster delivery windows and deeper integration for e-commerce and SME clients.
Flexport continues to compete in the mid-market with a tech-first model and no ships or ports to manage.
Traditional powerhouses like DHL, Kuehne+Nagel, and DB Schenker operate globally with strong air/ground networks and lighter balance sheets.
Meanwhile, TMS platforms and API-based networks are giving shippers the tools to stitch together their own ecosystems—without needing a full-stack provider.
In this environment, owning infrastructure isn’t always a moat—it’s a strategic bet. One that has to be earned year after year.
The Software Gap
Maersk has built impressive digital tools—Maersk Flow and Twill among them—but these offerings haven’t yet broken out as market-leading platforms.
Flow offers multimodal visibility, carbon tracking, and ETA prediction, but it lacks the API richness and ecosystem pull of players like Project44 or FourKites. It’s a tool within Maersk, not an industry-wide layer.
Twill, aimed at SMEs, delivers booking and shipment management—but doesn’t compete aggressively in UX or functionality with forwarders or even Amazon’s interface.
The risk here is that Maersk over-indexes on physical ownership without investing enough in the digital experience that today’s shippers expect—especially mid-market brands and DTC players used to best-in-class tooling.
Environmental, Social, and Governance criteria as Long-Term Differentiator
Maersk is playing the long game on sustainability—and that may prove to be one of its most defensible advantages.
With a 2040 net-zero goal, a fleet of methanol-powered vessels, and advanced carbon tracking tools already in place, Maersk is positioning itself as the default logistics partner for ESG-conscious enterprises.
Regulated industries, public retailers, and European manufacturers under carbon scrutiny will need partners who can prove emissions compliance, not just promise offsets. This is a space Amazon and Flexport aren’t fully prepared to serve—at least not yet.
In a global freight market under rising regulatory pressure, Maersk’s investments could become a real moat.
Final Thought: Control or Collapse?
Maersk’s strategy is bold. It has taken the hardest path in global logistics—owning everything—and tried to wrap it in a narrative of control, visibility, and resilience.
When the market cooperates, it works. When it doesn’t, the weight of infrastructure becomes a burden.
The next five years will tell us whether vertical integration is a margin-expanding masterstroke—or an expensive hedge against chaos. Either way, Maersk is the best case study we have in what full-stack logistics really looks like when it hits scale.
And right now, the cost of control is showing.
