Bulletin of the Transilvania University of Braşov Series V: Economic Sciences • Vol. 9 (58) No.

1 - 2016 

Quality management in shipping. Case study: Maersk Line 

Denmark 
Anca MADAR1, Nicoleta Andreea NEACŞU2 
Abstract:  Quality  assurance  has  become  very  important  to  the  majority  of  production  or  service  companies  with 
international  activity.  Maritime  transport  companies  were  also  required  to  take  measures  to  implement  a  quality 
management  system.  Because  of  navigation  accidents  that had a significant impact on shipping, there was designed 
a  ship  safety  management  code.  To  put  into  practice the quality management system, each company adopts specific 
quality strategies according to their activity. 
Key-words: shipping, quality management, quality strategy, distribution, products 
1. Introduction 
Shipping  is  a  vast  and  complex  economic  activity,  both  in  the  volume  of goods in traffic annually and in 
material  value.  This  complexity  is  driven  also  by huge investments in high-tech, represented by means of 
modern  transport  and  ports  as  transhipment  hubs.  Meanwhile,  the  complexity  lies  in  the  specific 
environmental  conditions  in  which  they  take  place  -  the  seas  and  oceans  -  which  require  special  safety 
measures. 
In  making  huge  volume  movement  of  goods,  shipping plays a leading role, both quantitatively and 
as  efficiency.  The  seas  and  oceans  form  a  natural  bridge  undeniable,  unavoidable,  and  lasting,  effective 
and  necessary  between  and  among  different  countries  (Caraiani  and  Georgescu,  2012).  Among  the  most 
important benefits of shipping there are (Hollman and Handy, 1994): 
•  shipping  is  the  most  economical means of transport of goods, calculated either on the overall cost or per 
tonne transported, but especially tonne / mile, the advantage being highlightedon long distances, overseas; 
• reported on the distances to be completed, shipping routes require 
• incomparably lower than terrestrial facilities; 
1 Transilvania University of Braşov, [email protected]; [email protected] 2 Transilvania University of Braşov, 
[email protected] 
 
Bulletin of the Transilvania University of Braşov • Series V • Vol. 9(58) No. 1 - 2016 140 
• shipping allows the transport of goods in almost every area of the globe, including in areas with ice, 
without transshipment, customs operations and others, in terms of safety. Shipping and ship management 
companies face, over time, increasingly varied issues. New requirements and regulations worldwide come 
to strengthen this problematic spectrum. This raises the need to address the new guidelines and directions 
as (http://documents.tips/documents): 
- The protection and prevention of the marine and environment pollution; - Individual and collective 
security for vessels operating personnel; - Safer operating procedures of ships in the context of massive 
transport units tech ; 
- Response methods for identified or likely emergency situations; - Development of integrated 
management systems for quality - environment - safety; 
- Improving the personnel embarked aboard for safety, knowledge and respect of international rules 
and regulations related to environmental safety and protection. 
Using  the  quality  in  the  shipping  company's  management  system,  imposed  a  series  of 
organizational  and  design  changes,  making  the  transition  from  a  military-  style  management  to  a 
participatory, open one. 
In  this  way,  quality  assurance  has  become  a  real  management  tool  that  is  used  to  overcoming 
shipping  company  challenges.  Control  and  management  of  the  ISM  Code  (International  Management 
Code)  to  the  shipping  company,  required  training  and  specialization  of  a  person  in  this  area,  for  all 
situations and issues related to this Code. 
In  today's  market  it  becomes increasingly difficult to operate, if there is not practiced some form of 
quality  assurance.  Partners'  „charter”  often  have  QA  (quality  assurance)  clauses.  As  a  result 
(http://documents.tips/documents/): 
- Large oil carriers all have their own QA requirements; - Suppliers of products necessary for ships, find it 
increasingly difficult to enter a company without QA; 
- Maritime management companies need a recognized certificate in order to be considered their 
activity. 
QA  ubiquitous  factor  in  the  development  of  ISO  range  up  to  hybrid  codes  that  link  directly  to 
marine  management  has been relatively quick towards the traditional industry development.In addition, in 
their  development,  codes  each  have  a  slightly  different  purpose.  The  most  important  of  these  is  the ISM 
Code  of  IMO  (International  Maritime  Organization).  This  Safety  Management  Code  became  gradually 
mandatory  for  various  types  of vessels, from 1998 to 2002. ISM Code has affected almost any operator in 
the world and virtually became gradually the license which is compulsory to be used for operation. 
 
A. MADAR et al.: Quality management in shipping. Case study: Maersk Line Denmark 141 
2. Shipping quality management 
Functional  requirements  for  a  safety  management  system  of  the ship taken under debate, do not differ, as 
an  idea.  The  stipulations  relating  to  quality  policy  and  environment,  differ  from  those  of  a  quality 
standard  for  a  land  company,  on:  responsibilities  and  authority  of  the  company,  the  person  designated 
responsible  for  safety,  responsibilities  and  authority  of  the  skipper  and  other  officers  on  board.  The 
quality  requirements  in  a  company are determined by the place and importance of the quality factor in the 
overall  company’s  strategy,  as  well  as  on  the  ability and willingness of the employees to consider quality 
management as a continuous improvement process (Băltescu, 2010). 
Financial,  material  and  personnel  resources  involved in quality management and product safety are 
a  particular effort for a navigation company, but its benefits are very high in the long run. Development of 
plans  for  shipboard  operations,  preparing  ship  for  emergency  situations,  reporting  and  analysis  of 
non-conformities,  accidents  and  potentially  dangerous situations are very important issues for the ship, its 
equipment and its maintenance. 
The  documents  required  for  quality  management  system  certification  procedure  in  maritime 
transport  are  equally  important  for  the  ship  and  company,  because  in  some  countries  and  ports,  ships no 
longer  have  access  to  the  loading  or  unloading  if  these  documents  are  not  compiled  and  recorded 
properly. 
Quality  planning  and  environmental  management  system  objectives,  establishing  the requirements 
relating  to  environmental  managament  vessels  are  particularly  important  activities  for  the  shipping 
company  management. This should take into account a number of operational variables, the consequences 
of all measures to be taken and, especially, the degree of danger represented by ship and cargo carried. 
There  are  two  ways  to  improve the management quality and both are used in the shipping industry. 
They  are  not  mutually  exclusive,  but  there  are  differences  of  opinion  regarding  which of these should be 
implemented first. The two methods are: 
- quality assurance; - total quality management (http://documents.tips/documents). It is usually that a 
shipping company to obtain a certificate of compliance with quality assurance system and then, pass the 
implementation of a quality management system. It has become a normal practice to distinguish between 
navigation, navigational equipment as its object and management of land and the sea. 
In  almost  all  marine  accidents,  the  ship  and  shore  management  were  sharply  criticized  in  most 
reports.  The  interface  between  the  ship  and  shore  management  was  considered  the main weakness of the 
safe operation of ships and, therefore,it was given special attention. 
The International Maritime Organization response in matters relating to safety management was the 
adoption of a resolution by which to approve and promote 
 
Bulletin of the Transilvania University of Braşov • Series V • Vol. 9(58) No. 1 - 2016 142 
“IMO  recommendations  for  ship  safety  and  pollution  prevention.  “These  recommendations  have  passed 
since  the  voluntary  adoption  of  the  ISM  Code  and,  initially,  became  mandatory  for  certain  types  of 
vessels from the date of 1 July 1998. The implementation program of the code was as follows: 
• 1st July, 1998 - all passenger ships and all ships with a gross tonnage of 500 TR of the following 
groups: tankers, gas transport ships, ships bulk carriers and cargo ships, high-speed; 
• 1st July 2002 - all other cargo ships and drilling vessels with a gross tonnage of 500 TR. 
3. Maersk Line Denmark Company description 
A.P.  Moller  Maersk  Group is a Danish company founded in 1904 that operates in several economic areas, 
known  especially  for  its  transport  activity.  The  company's  headquarters  is  in  Copenhagen and it operates 
in more than 135 countries worldwide, with a total of 108,000 employees. 
AP  Moller  Maersk  Group's  activities  are  organized  into  several  segments:  container  transport  and 
related  activities;  APM  terminals,  tankers,  training,  offshore  activities  and  other  shipping  operations; 
business  in  the  oil  and  natural  gas;  retail  activities;  shipbuilding  and  other  industrial  companies, 
involvement  in  Danske  Bank  etc.  The  company  provides  transport  goods  and  services  under  the  brands: 
Maersk Line, Safmarine and Damco. Since 1996, Maersk is the largest container shipping in the world. 
Maersk  Line  is  the  world's  largest  container  shipping  company,  known  for  reliable,  flexible  and 
eco-efficient  services.  It  provides  ocean  transportation  in  all  parts  of  the  world.  It  serves  the  customers 
through  324  offices  in  115  countries.  It  employs  7,600  seafarers  and  23,200  land-based  employees  and 
operate  590  container  vessels.  It  markets  its  services  through  the  Maersk  Line,  Safmarine  and  SeaLand 
(Intra-Americas)  brands.  Maersk  Line  is  the holding company for MCC Transport (Intra-Asia) and Seago 
Line (Intra-Europe). 
Maersk  Line  is  part  of  the  Maersk  Group,  headquartered  in  Copenhagen,  Denmark.  The  Group 
employs  over  88,000  people  in  some  130  countries.  2015  revenue:  USD  40.3  billion 
(http://www.maerskline.com/ro). 
Maersk  Line’s  2015  result  was  USD  1.3 billion which is 44% lower than 2014 (USD 2.3bn) due to 
weak  demand  and  very  low  freight  rates.  Revenue  was  USD  23.7  billion  which  is  13.2%  lower  than  in 
2014 (USD 27.4bn). 
“2015  was  a  challenging  year.  We  delivered  a  record first quarter result and a strong first half year 
result.  However,  the  continued  lack of demand and over- capacity resulted in sharply declining rates from 
the  second  quarter  and  onwards.  At  the  end  of  2015,  rates  were  record  low  and  our  fourth  quarter  result 
was negative. In light of our expectations at the beginning of the year, our result is less than 
 
A. MADAR et al.: Quality management in shipping. Case study: Maersk Line Denmark 143 
satisfactory. But considering the market in 2015 it is a solid financial performance,” says Søren Skou, 
CEO of Maersk Line. 
In  2015,  Maersk  Line  improved  their  competitiveness  by  continuing  to  reduce  unit  cost.  They 
successfully  implemented  2M, the world’s largest vessel sharing agreement and launched a new container 
shipping line - SeaLand - in the Americas. 
Maersk  Tankers  is  involved  in  the  transport  of  oil  and  gas.In  July  2009,  Maersk  Tankers  had  140 
vessels:  20  crude  oil  carriers,  91 tankers and 21 gas transporters and eight LNG carriers (liquefied natural 
gas).  All  Maersk  tanks  are  double  insulated,  anenvironmental  requirement  imposed  after  the  ecological 
disaster  caused  by  Exxon in 1989 in Valdez. Since 2009, the company (along with other operators) used a 
low-speed driving to reduce fuel consumption. 
In  2007  the  Maersk  Romania  company  launched  the  first  maritime  transport  line  of  containers, 
between  Constanta  and  the  ports  of  Asia.  The  new  line,  shortened  by  15  days  the  transportation  time  to 
Asia  and  is  a  direct  link  between  Constanţa  and  ports in Russia, Ukraine, Bulgaria and Georgia. The first 
ship arrived in the Constanţa port on the new route, had 294 meters length and 5,000 containers capacity. 
Enterprises controlled by APM Group in Romania are: 
•  APM  Terminals  Romania  SRL  -  company  whose  main  activity  consists  in  the  provision  of 
inland  waterway  transport,  such  as  container  handling,  storage  containers,  container  repairs,  cargo 
handling  and  transport  containers.  In  addition,  APM  Terminals  Romania  conducts  terminal  operator 
within  the  territory.  According  to  the  classification  NACE  code  primary  business  of  this  company  is 
“handling” (NACE code 5224); 
• Maersk Romania SRL - company whose main activity is the “Other transportation support 
activities” (NACE code 5229); 
• Damco Romania SRL - company whose main activity is the “Sea and coastal freight” (NACE 
code 5020).(Http://www.manager.ro/articole). 
The  company  Maersk  Line  has  made  considerable  progress  in  terms  of  integrating  the  concept  of 
sustainability  in  the  business  (http://www.maersk.com/en).  This  strategy  extends  over  the  period 
2014-2018  and  aims  to  “increase  through  low  costs”  for  Maersk  and  society,  focusing  on  the three main 
pawns: 
• Trade development (volume growth); 
• Education (skilled workers, employment); 
• Environment (resource efficiency, reducing CO2 emissions). Trade development In this regard, the 
company will turn to three areas: 
•  Improving  the  business  environment:  the  development  of  trade  procedures  more  effective, 
efficient transport time, agreements with government institutions and other industries associated; 
• Improved ability to penetrate other markets; 
• Constraints at national level in terms of investing in infrastructure. 
 
Bulletin 144 of the Transilvania University of Braşov • Series V • Vol. 9(58) No. 1 - 2016 As regards 
investing in education (http://www.maersk.com/en/), the company aims again three directions: 
• Providing trainings and education in developed markets; 
• Developing social inclusion process-attracting low-income women and youth in trainings and 
internship programs; 
• Improving the supply - providing tools and equipment for the development of skills and 
capacities to provide certain products. 
Regarding the environment and energy efficiency, the company will focus on two directions: 
• Reducing CO 
2 

emissions - is expected that by 2020, Maersk will reduce with up to 40% such 
emissions. 
• With the aim of optimizing the overall transport chain and ensure a efficient cost, will 
implement a series of procedures to reduce fuel consumption. 
The  “Triple  E  Maersk”  class  defines  the  group  of  20  super  cargo  ships  belonging  to Maersk, built 
by  Daewoo  shipyards.  With  a  length  of  400  meters,  weighing  55,000  tonnes  without  cargo  and  165,000 
tonnes  including  cargo  on  maximum  capacity  and  priced  about  200  million  dollars  apiece, they were the 
largest  built  freighters  in  the world. They were surpassed recently by three Chinese cargo ships belonging 
to China Shipping. 
Maerskcompetitors 1. Evergreen Marine Corporation - one of the largest container shipping companies in 
the world.It owns a fleet of about 160 container vessels specialized in the perishable goods transport. 
Evergreen has more than 240 service locations covering approximately 80 countries. Its most routes are 
among Asia / Pacific and North America (http://www.hoovers.com/company-information/cs). 
2.  China  Ocean  Shipping (Group) Company - carrier of freight containers. It operates a fleet of 450 
vessels  serving more than 400 ports worldwide and maintains a network of approximately 650 facilities in 
approximately  150  countries.  CSC  offers  logistics  and  multimodal  services,  organization  of  transport  of 
goods  in  containers  on  rivers, rail and road transport. It also provides refrigerated containers and provides 
cargo dangerous goods transport (http://www.hoovers.com/company- information/cs/). 
3. Mediterranean Shipping Company - MSC does not limit its operations only on the Mediterranean 
Sea.  It  has  a  fleet  of  over  375  container  vessels  providing  regular  services  to  about  335  ports  on  six 
continents (https://www.cma- cgm.com/news). 
 
A. MADAR et al.: Quality management in shipping. Case study: Maersk Line Denmark 145 
4. Quality strategies implemented by Maersk Line 
Maersk  Line  is  concerned  to  be  seen  as  a  supplier  that  distributes  products  in  good  condition.  Thus,  the 
equipment  used  are  high  quality,  the  average  age  of  containers  is  less  than  7  years.  Also  it  handles  and 
clean each container before offer them to the customers. 
In  addition  to  investing  in  high-quality  equipment,  the  company  ensures  that  the  procedures 
throughout  the  distribution  process  to  be  affordable  and  professional.  Also  all  strategies  come  with  a 
policy of risks minimizing (http://www.maerskdrilling.com). 
In  order  to  be  a  successful  company  they  selectively  choose  their  suppliers  and  business  partners. 
The contracts signed are carefully analyzed and the focus is on professionalism. 
The  company  ensures  that  it  receives  an  explicitly  report of performance and is always looking for 
solutions  to  improve  everything.  Company’s  management  requests  feedback  first  from  employees,  from 
customers  and  investors.  With  every  extra  information,  they  are  getting  better  put  up  with  what  needs 
changing. 
Maersk Line is very much involved in the social area, points targeted in this area are 
(http://www.maersk-fpsos.com): 
- Carbon emissions and waste materials; - Risk management; - Commitment to local businesses; - 
Communication. In this connection, Maersk Line, not only was involved in various projects to help the 
community, but managed to make its own advertising. In 2011 they launched a magazine in which two 
pages were devoted to projects DEVELOPMENT HSE (health, safety and education) and at least one 
page was devoted to projects that have involved community. For these projects, Maersk has well prepared 
employees, giving a good example of how to lessen the chance of emerging risks at work through various 
methods of protection and safety (http://www.maersk-fpsos.com). 
Also  part  of Moller Maersk group was involved in the UN Global Compact (United Nations Global 
Compact).  This  is  a  strategic  policy  to  align  procedures  and  strategies  at  the  10  universally  accepted 
principles  in  the  areas  of  human  rights,  labor,  environment  and  anticorruption.  Moreover,  the  number  of 
employees trained in anti-corruption techniques reached 25,356 (http://www.maerskoil.com). 
Another  point  that  Maersk  has  treated  seriously  is  to  create  a  safe  and  balanced  environment 
workplace.  In this regard, the company assumes the responsibility to provide employees all the rights they 
are  entitled  to - there is no discrimination of gender, race, politics or sexual orientation. All employees are 
equal  and  there  is  no  preferential  treatment.  In the case of new employees, the company ensures that they 
receive training to work at full capacity and to ensure that 
 
Bulletin of the Transilvania University of Braşov • Series V • Vol. 9(58) No. 1 - 2016 146 
new employees understand the concept of quality and its importance (http: //www.maersk-fpsos .com). 
Since  Maersk  operates  globally,  it  has  provided  employees  a  voluntary  program  by  which  those 
who want to work in the company, but in another country, to learn the language in question. The company 
makes  also  available:  gym,  fitness,  psychologist,  medical  care,  benefiting  from  free  tests,  controls  and 
certain surgeries. 
Maersk  Line  has  noticed  that  it  is  among  major  polluters  in  the  world  through  its  mega  vessels. 
There  are  currently  containers  of  steel  and  covered  with  a protective coating of bromine, chromium, lead 
and  other  highly  toxic  materials  (http://www.archdaily.com)  to  protect  them  from  salt  water  to  grind 
metal.  Inside  some  containers  there  is  also  chemically  treated  wood,  which  can  affect  the  environment 
through  cut  wood  and  toxic  coatings  and  paints  used.  It  is  estimated  that  an  average  of  1,600  of  these 
containers are lost at sea annually (http://www.southernfriedscience.com), affecting the seas and oceans. 
In  2015,  Maersk  has  signed  an  agreement  on  carbon  emissions  with  the  Dutch  giant  Phillips  to 
reduce  these  unpleasant  effects  on  the  environment.  More  precisely,  for  each  container  manufactured  by 
Phillips,  the  carbon  footprint  per  built  container  must  be  reduced  by  20%  by  2020  through  the 
introduction  of  resistant  and  environment-friendly  materials  in  their  composition 
(http://www.maerskline.com/el). 
However,  through  the agreement signed, Phillips committed itself to increase the quality of engines 
and  propulsion  technologies  for  ships,  by  free  development  of  new  technologies  in  diesel-powered 
vessels. 
The  company  is  so  much  concerned  with  the  environment  that,  in  2014,  invested  5  million 
Danekroner  in  a  project  in  collaboration  with  German  engines  and  trucks MAN Diesel and University of 
Engineering  and  Mechanics  of  Denmark  towards  new  technologies  propulsion  and  refurbishment  of 
vessels  around  the  world  to  protect  the  environment.  New  ships  can  be  fitted  with  new  and  effective 
engines  but  there  are  tens  of  thousands  of  ships  in  the  world  that  use  old  engines  and  propellers. 
Therefore,  Maersk  Line  and  MAN  have  joined  efforts  to  develop  new  technology  in  propulsion  and 
propellers that can be adapted to old vessels. 
5. Conclusions 
Maersk  Line  implements strategies that can be used on global level. Thanks to the experience and level of 
development, it invests heavily in the employees and community interest. 
As  quality  strategies,  the  company  is  focused very much on customer satisfaction, speed in solving 
certain  requirements  and  risk  mitigation,  both  at  work  and  for  the  loss  of  customers.  The  target  of  the 
continuous improvement of quality is 
 
A. MADAR et al.: Quality management in shipping. Case study: Maersk Line Denmark 147 
the development of the company simultaneously with satisfying and attracting loyal customers (Boşcor, 
2015). 
In terms of sustainability strategy in recent years has been ready for a new phase involving gains 
both for business and for the community. 
In  order  to  be  considered  a  quality  provider  Maersk  Line  has  invested  heavily  in  quality 
equipment,taking  into  account  environmental  protection.  The  company  shall  ensure  that  the  distribution 
process  is  professional  and  accessible  and  environmentally  friendly.  Within  the  company, employees are 
trained and educated to minimize the rate of accidents at work and work safety. 
Regarding  the  environment  and  the  community,  Maersk  Line  has  participated  in  various  projects, 
has  signed  agreements  with  collaborating  companies  to  ensure  that  carbon  emissions  from  transport will 
be reduced. 
Maersk  Line  is  a  company  with  tradition,  know-how  and  well-structured  strategies.For diversified 
services,  Maersk  may  introduce  a  line  of  land  transport.  In  this  way,  they  can  meet  the  requirements  of 
several companies and the costs would be lower. 
6. References 
Banila, S.M., 2014. ANALIZA: Maersk, uriasul si marea. [online] Available at: 
<http://www.manager.ro/articole/analize/analiza-maersk-uriasul – and -sea- 57175.html> [Accessed 10 
April 2016]. Băltescu, C.A. 2010. Strategii de marketing în turismul montan românesc. Braşov: 
Editura Universităţii Transilvania din Braşov, p. 141. Boşcor, D., 2015. Export strategies adopted 
by the Romanian SME. Bulletin of the 
Transilvania University of Braşov 8(57), Series V, No. 1, pp. 227-232. Caraiani, Gh. and Georgescu, C., 
2012. Transporturi şi expediţii internaţionale. 
Bucureşti: Ed. Universitară, p.21. Hollman, M.E. and Handy, A., 2009. Book of shipowners and 
masters Review. 
Londra: Editura W.H. Maisey, p.233. Lucrare de disertatie, 2008. Management maritim si portuar. 
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at: <http://documents.tips/documents/aspecte-specifice-privind- 
managementul-calitatii-in-transportul-maritim.html> [Accessed 15 April 2016]. CMA CGM, 2016. News. 
[online] Available at: <https://www.cma- 
cgm.com/news/279/2013-third-quarter-financial-results?cat=finance> [Accessed 14 April 2016]. 
Evergreen Marine Corporation Ltd. Revenue and Financial Data. [online] Available at: 
<http://www.hoovers.com/company-information/cs/revenue-financial. 
EVERGREEN_MARINE_CORPORATION_(TAIWAN)_LTD.54fc34668bc d3166.html> [Accessed 14 
April 2016]. 
 
Bulletin of the Transilvania University of Braşov • Series V • Vol. 9(58) No. 1 - 2016 148 
Maersk. Our sustainability strategy. [online] Available at: <http://www. 
maersk.com/en/the-maersk-group/sustainability> [Accessed 16 April 2016]. Maersk. Investing in 
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