MADCAP Global Versus Maersk
Crews battle flames aboard Maersk Frankfurt, July 2024.
In July 2024, the shipping vessel Maersk Frankfurt caught fire mid-journey near Karnataka in the Arabian Sea.
Aboard Maersk Frankfurt was a consignment of flexible intermediate bulk containers (FIBCs) from one of MADCAP Global’s Indian suppliers. This cargo, classed as Fast-Moving Consumer Goods (FMCG), was destined for some of our clients in the Australian meat processing and stockfeed manufacturing industries.
Once the flames were extinguished and Frankfurt was docked indefinitely for extensive damage assessment and repair, concerns were immediately raised about the condition of the goods. Though designed and manufactured to be durable for rigorous transit, FIBCs are susceptible to degradation from moisture and extreme temperature fluctuations if not stored correctly.
FIBCs, designed to store and transport goods like grain.
Maersk gave initial reassurances the freight had not been damaged in the fire, but as months passed, no further updates were given as Frankfurt and its doomed cargo lingered in logistical limbo.
MADCAP Global requested the goods be returned to port of origin in Mumbai. Instead, Maersk, in their infinite wisdom, shipped the container to Australia before eventually forwarding it on to the correct return destination.
This ridiculous round-trip for a single 40ft container came at the cost of $9000, on top of the $4000 it cost to originally ship it. Given pressure to meet an already extended delivery schedule, the FIBCs were reordered and shipped at full cost to MADCAP Global and its supplier. The potential loss to the manufacturer totals US$62,000.
Meanwhile, the accountability and communication response from Maersk leaves much to be desired. Maersk supposedly operates with a customer-first policy yet assumes no responsibility for damage to or loss of goods while in transit. Repeated requests to return the cargo were ignored, as well as multiple phone calls and emails. To this day, Maersk has not responded.
Insurance companies outright refuse going against Maersk, which stands behind a legal team that promises a prolonged and costly legal process to remedy any grievances brought against the company. It literally isn’t worth the trouble.
And herein lies the problem: Maersk, like many corporations and global enterprises, are simply too big to be concerned with the tribulations of its customers.
Instead, we are treated with disdain and reproach, as if our single container of goods is less important or vital than any other onboard. Maersk boasts as a major player in the global supply chain, yet in this instance, they have failed to deliver.
Maersk’s actions in the wake of Frankfurt fire highlight glaring inefficiencies in its model of operations and an atrocious customer response coupled with a belligerent attitude. Up to 1,382 containers at lost at sea each year globally, according to data collected by the World Shipping Council. It’s very much a drop in the ocean.
Clearly, the losses to MADCAP Global and its suppliers resulting from the Frankfurt fire mean little to Maersk in terms of its bottom line. A single container overboard, lost in transit or in this case, needlessly diverted from its desired course at great cost to the customer is considered an acceptable loss. But when that single container along with its contents represents the livelihoods of manufacturers, suppliers and customers, no level of loss is acceptable.
Nor is it acceptable for a service provider like Maersk, no matter its size or influence, to ignore customers in distress. When flames took hold of the Frankfurt, fire and rescue crews responded in a timely manner. Yet, Maersk afforded no such assistance when they were called upon.
Rethink your packaging and transport solutions with MADCAP Global Commodities & Agri-Business.
