Integrated logistics company A. P. Møller - Maersk has announced its board of directors has appointed Vincent Clerc as the firm’s new CEO, taking over for Soren Skou after over a decade.

Copenhagen-based Maersk is one of the world's biggest shipping and logistics companies, handling supply chains for large customers like Walmart and Nike. However, the announcement comes as declining freight rates in the brand’s main shipping business warn about a possible recession. 

With container demand slowing down, Clerc said to Reuters that he will focus on keeping costs down at a time when Maersk has been buying up warehouses and distribution centers to offer an end-to-end transportation service rather than just container shipping.

The newly appointed CEO also mentioned the receding pandemic and the conflict in Ukraine, along with the energy crisis currently affecting Europe as his main challenges facing the role. 

“Companies are rethinking their supply chains in this new environment, they are looking for more stability, and more support on their decarbonisation journey. This represents an incredible business opportunity for Maersk that we all are eager to seize,” said Clerc.

Vincent Clerc joined Maersk in 1997 and has since held several senior positions, including CEO for the group’s Ocean & Logistics division. He is set to take on the new role by January 1st.