DENMARK's Maersk Line, world's biggest container shipping company, has handed over the management of 12 vessels to Bernhard Schulte Shipmanagement (BSM) and ER Schiffahrt, both of Hamburg.

Maersk has assigned ER Schiffahrt to manage three subpanamax and three postpanamax containerships of 2,500 TEU and 11,000 TEU. BSM will also manage six vessels from 2,500 to 11,000 TEU.

The contracts include crewing and technical operation, as well as measures relating to security, environmental protection and energy efficiency. 

"This management mandate from Maersk Line confirms to us that we are on the right path," said ER Schiffahrt new business board member Isabelle Rickmers. 

"We see our customers as our partners. Their requirements and needs are our main focus. With Maersk Line, we now have a strong customer at our side and look forward to a successful partnership," she said.

"Currently managed in-house by Maersk, the will be managed over the next five years from BSM's Ship Management Centre in Hamburg, Germany," said the Bernhard Schulte statement. 

"BSM will be responsible for all aspects of management including crewing, technical operations, safety performance, environmental performance, and energy efficiency," it said.

"We are proud to have been awarded this contract by Maersk in line with its aim to continuously improve management of its fleet," said BSM chief executive Norbert Aschmann. 

"This is a significant vote of confidence in BSM and reflects our commitment to safety, operational efficiency and transparency, and emphasis on the achievement of key performance indicators agreed with our business partners," he said.

BSM has more than 25 years of experience in managing container vessels, with more than 180 ranging in size from 13,500 TEU.

Container shipping lines continue to suffer from a weak freight market and overcapacity. They are looking for ways to reduce costs in order to combat the weak market and remain profitable, said IHS Maritime 360. 

By managing ships both in house and by using third-party management companies, owners can benchmark their own operations against those of a contractor.

Maersk Line has reduced its unit costs to US$2,246 per FEU in 2015 from $2,584 in 2014, $2,731 in 2013, and $3,054 in 2012, Maersk said in its second quarter results.

Maersk Line will reassign the crew members currently serving on the 12 vessels.