Maersk Shareholders Vote Down Proposal to Ban Arms Shipments to Israel
Management denies shipping weapons or ammunition to a conflict zone
At an annual general meeting held Tuesday, Maersk shareholders voted down an activist investor resolution that would have banned the company from shipping arms to Israel.
Earlier this month, shareholder activist group Kritiske Aktionærer filed a proposal to stop number-two ocean carrier Maersk from shipping military cargoes to Israel. The motion was opposed by Maersk's board, and when it was put to a vote at the company's annual general meeting Tuesday, it did not pass.
Maersk denies shipping weapons or ammunition to Israel. In a statement Tuesday, it noted that its U.S. subsidiary - Maersk Line Ltd. (MLL) - has never even filed a transportation plan to ship "classified or sensitive cargo, which includes weapons and ammunition." MLL is a U.S. Maritime Security Program (MSP) participant, and it operates U.S.-flagged vessels that carry federal cargoes, including the military assistance shipments that are a critical element of U.S. foreign policy.
However, Maersk's critics have differing opinions about which cargoes could be considered "weapons." Investigative journalism group Danwatch has obtained bills of lading that appear to show that more than a dozen Maersk-owned ships carried thousands of tonnes of militarily-useful goods to Israel since the beginning of the Gaza conflict. In one example of a complete system delivery, one bill of lading appears to show that MLL shipped seven armor-equipped Heavy Expanded Mobility Tactical Trucks (HEMTTs) to Haifa in November 2023. While HEMTTs are cargo vehicles, they meet EU definitions for military equipment, and Israeli forces have used armored HEMTTs inside of Gaza for logistics and prisoner transport.
The tabloid Ekstra Bladet also identified nine bills of lading with HTS code 9306.90 (explosive munitions and parts thereof), four with HTS code 9305.91 (cannon parts), and 31 with HTS code 9306.30 (cartridge components).
"The transport of cargo on behalf of the US government does not contain weapons or ammunition. These shipments contain military-related equipment and are derived from US policy under the US-Israeli security cooperation program," Maersk told Extra Bladet in response.
In its statement Tuesday, Maersk again denied transporting weapons to Israel and pushed back against "misrepresentations" about its business.
"The [activist] campaign is spreading inaccurate allegations and has in some instances involved assumptions presented as documented facts and what looks like misleading information through twisting of publicly available data," said Maersk in a statement. "Unfortunately, we have also experienced vandalism and illegal, aggressive demonstrations on our premises and against our employees. This will not change our position or our business practice, guided by international standards."
The company said that it has a strict policy of not shipping weapons or ammunition to active conflict zones, and that it complies with all international regulations. "We fully recognize our responsibility as a global logistics provider and that it is on us to always reinforce the internationally agreed responsible business practices – even more so when operating in areas of active conflict," the carrier said in a statement.
DP World to Expand Port of Santos Capacity Linked to Deal with Maersk
DP World signed a long-term strategic agreement with Maersk as part of its plans to expand maritime services at its terminal in the Port of Santos, Brazil. DP World operates one of Brazil’s largest private terminals at the Port of Santos and plans to increase capacity by 50 percent to support Maersk’s growth in Latin America.
Under the terms of the eight-year agreement, Maersk will introduce additional long-term services and maintain a minimum service level. In the first year, Maersk will launch six new services with eight weekly calls, increasing to seven services and 10 weekly calls in 2026 following DP World’s capacity expansion.
“This announcement is another strategic step for DP World in Brazil, reinforcing our presence at the Port of Santos, and accelerating new expansion opportunities in the country,” said Márcio Medina, Commercial Vice President at DP World in Brazil. He noted the agreement with Maersk “not only allows us to expand our operational capacity for container handling but also ensures long-term aces to Brazil’s leading port and logistics hub.”
Currently, the terminal handles 1.4 million TEUs annually. To accommodate growing demand, DP World is investing R$450 million (US$79 million) to expand its container-handling capacity to 1.7 million TEUs by the end of 2026. The company also plans to invest an additional R$1.6 billion (US$280 million) to further increase capacity to 2.1 million TEUs by the end of 2027.
“This agreement with DP World secures service capacity for Maersk at the Port of Santos,” said Paulo Ruy, Regional Head of Terminal & Port Procurement for Latin America at Maersk. “By having this commercial agreement with DP World, we are able to meet the growing demand for container handling and enhance our service offerings, ensuring that we continue to provide end-to-end logistics solutions, in addition to our stand-alone products.”
DP World reports it set a new record for container-handling volume at the Port of Santos in 2024, surpassing 1.25 million TEUs – a 14 percent year-over-year increase. The growth was driven by expanded container operations and the introduction of new services. The company recently invested R$50 million (US$8.8 million) in advanced port equipment as part of its ongoing R$85 million (US$15 million) terminal expansion project, which will increase capacity to 1.7 million TEUs. Additionally, DP World said it has strengthened its network through a new agreement with Rumo, Brazil’s leading railway operator, to develop a new terminal for grain and fertilizer shipments, adding 12.5 million tons of operating capacity per year.
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