AMKBY AP Moller Maersk AS (PK)

By Costas Paris 

While the world scrambled for personal protection gear in May to shield from the coronavirus pandemic, the Canadian government managed to secure an order for tens of millions of face masks from Chinese suppliers. But getting the masks to Canada was more difficult than procuring them.

With no flights coming out of China, Canadian authorities had to improvise. They turned to Maersk Special Project Logistics, a unit of Danish shipping and logistics giant A.P. Moller-Maersk A/S that handles complex supply chain operations, often in hazardous conditions.

"We leased three Antonov cargo planes and a Boeing 747 and set up an air bridge from several locations in China to Edmonton in Alberta," said Robin Townley, the head of Maersk SPL. "Ten days after we first talked with Canada, we delivered 45 million masks, more the entire Canadian population."

The flights were part of widespread efforts by relief groups and logistics providers to bring medicine, protective equipment and other supplies to countries even as major transportation networks, including passenger flights that provide critical freight capacity, were pulled down.

Emergency relief logistics has become a growth industry in recent years as governments and private groups have raced to provide food, medical supplies and shelter following natural disasters and other humanitarian crises that have devastated communities.

The steps made by private companies, including big cargo transportation and logistics providers, to organize standards for relief response accelerated in the aftermath of the Southeast Asia tsunami in 2004 that killed more than 200,000 and triggered an enormous, often ad hoc aid effort across a broad geographic area.

In the U.S., the American Logistics Aid Network was established in 2005 following what the group called a "logistics nightmare" to deliver aid following Hurricane Katrina. Supported by donations, the group connects logistics and transport providers to groups including the Federal Emergency Management Agency to get supplies to disaster zones.

ALAN estimates that 80% of all crisis spending by humanitarian organizations goes to logistics and as much 40% of that may be wasted as groups often don't have the right freight equipment, knowledge or connections at their disposal.

Maritime operators have been crucial in rebuilding supply lines to hard-hit areas. In 2017, Jacksonville, Fla.-based Crowley Maritime Corp. set up shipping operations to get relief supplies through to Puerto Rico's damaged main port in San Juan following Hurricane Maria.

Maersk SPL seeks to embed such dedicated logistics services in its operations with a permanent staff of around 100, based in the U.S., Europe, Asia and the Middle East. The unit works mainly with Maersk clients, but also with bodies such as the World Health Organization, the U.S. military, large private relief groups and the United Nations' relief and peacekeeping operations.

"We do high-risk jobs and we are highly profitable, but we also provide humanitarian services free of charge," Mr. Townley said.

The unit often uses its parent's assets, as it did in April 2019 in Mozambique, where refrigerated containers were used to distribute 900,000 vaccines to control a cholera outbreak in the aftermath of Cyclone Idai.

"There was no electricity in large parts of the country and the WHO asked us for cold-chain support during the vaccine distribution. The vaccination campaign was very successful and cut the outbreak off at the knees," Mr. Townley said.

Mr. Townley, a former U.S. marine involved in intelligence collection, paramilitary operations and combat search and rescue, says stepping into crisis situations requires teams with both local knowledge and global relationships to cut trough red rape and other obstacles.

His team is made up of workers from 10 nationalities, including logistics veterans, doctors, former military personnel and an Egyptian pizza-joint owner who Mr. Townley said was looking for adventure and is now a senior leader in the operation.

"Our diversity is a big part of what allows us to operate in any context, on any continent, and expect to succeed," said Mr. Townley. "We all row together."

Write to Costas Paris at costas.paris@wsj.com

(END) Dow Jones Newswires

June 26, 2020 14:32 ET (18:32 GMT)

AP Moller Maersk AS (PK) (USOTC:AMKBY)
Historical Stock Chart
From Dec 2024 to Jan 2025

AP Moller Maersk AS (PK) (USOTC:AMKBY)
Historical Stock Chart
From Jan 2024 to Jan 2025