Maersk denies shipping arms to Israel during Gaza conflict

COPENHAGEN (Reuters) -Maersk on Tuesday denied shipping arms or ammunition to Israel during its war in Gaza in response to a shareholder proposal at its annual general meeting (AGM) but acknowledged shipping military-related cargo.

"Maersk has a strict policy of not shipping weapons or ammunitions into any active conflict zone," CEO Vincent Clerc told shareholders.

The proposal to ban Maersk from shipping arms to Israel was put forward by Danish shareholder group Kritiske Aktionærer.

Activist group Eko in a separate proposal called for Maersk to enact greater transparency in its human rights processes, particularly focusing on high-risk areas including arms shipments. 

"We are fully compliant with all applicable laws," said Clerc, adding that Maersk acts in accordance with United Nations guiding principles on business and human rights and OECD guidelines on responsible business conduct.

U.N. experts have called on countries to impose sanctions and an arms embargo on Israel, arguing that Israel's military campaign in Gaza since October 7, 2023, in which Gaza health officials say more than 48,000 people have died, amounted to genocide.

Israel has strongly rejected the U.N. report and says it is combating Islamist group Hamas, whose fighters stormed into southern Israel, killing 1,200 and taking 253 hostages by Israeli tallies.

Maersk ships cargo to Israel for U.S. government agencies with its U.S. subsidiary Maersk Line, Limited (MLL).

Both shareholder proposals were dismissed by shareholders. The family-owned holding company Maersk Holding owns 41.5% of the shares and 54.5% of the votes in the Danish company.

Investigative media outlet Danwatch and Danish tabloid Ekstra Bladet have reported bills of ladings from Maersk, which showed it had shipped armoured combat vehicles and other military hardware to Israel.

Clerc said Maersk does transport military-related cargo, albeit in accordance with all laws.

"When we draw a line between what we accept to transport and what we don't, it's done after a very careful assessment and considering recommendations and regulations," said Clerc. "We realize that our line may not coincide with the wishes of everybody."

Denmark, where Maersk is headquartered, does not currently have an arms embargo and has not imposed any restrictions on sending weapons to Israel.

(Reporting by Louise Rasmussen and Jacob Gronholt-Pedersen. Editing by Terje Solsvik, Mark Potter and David Evans)