Disclaimer

The articles excerpted on this site report on the state of the industry as seen by mainstream media, and do not necessarily reflect the opinion of the officers of the ILWU Coast Longshore Division.

Maersk to get EU decision on Hamburg Süd deal by March 27

From World Maritime News:

Danish shipping giant Maersk Line is scheduled to receive the EU antitrust regulator’s decision on the company’s plan to purchase the Germany-based Hamburg Süd by March 27, according to Reuters.

The deal, reached at the beginning of December 2016 amid a consolidation period in the industry, was filed to the European […]

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Maersk slumps to only its second annual loss in seven decades

Excerpts from the Financial Times:

Shares in Maersk fell as much as 7 per cent on Wednesday as it reported only its second annual loss in seven decades and halved its dividend to try to protect its investment grade credit rating.

Maersk recorded a net loss of $1.9bn for 2016, compared with analysts’ expectations of […]

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CMA CGM and Cosco are most likely takers for OOCL, say analysts

CMA CGM and China Cosco are the two most likely carriers to buy OOCL, should its main shareholders decide to sell the company, according to Drewry Financial Research Services (DFRS).

DFRS claimed the acquisition of Hong Kong-headquartered OOCL and its parent company Orient Overseas International Ltd (OOIL) could represent “the final piece for CMA CGM” […]

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Japanese carriers NYK, MOL and ‘K’ Line merge container divisions into 5th largest box line

The major Japanese carriers NYK, MOL and “K” Line agreed to merge their container divisions, forming a brand new shipping company. The combined company will operate a fleet of 110 vessels with 1.4 million TEU, making it the fifth largest container line in the world. The decision was taken among crisis in the industry with […]

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South Korea’s Hanjin Shipping becomes symbol of industry in trouble

Excerpts from Bloomberg:

Hanjin assist

Hanjin Shipping Co. is hardly a bellwether in the world of container movers. As lenders halt all support this week, the South Korean company is now emerging as a symbol of the slump that has plagued the industry since the global financial crisis.

Creditors led by Korea Development Bank will […]

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Hapag-Lloyd to merge with UASC after secret talks with Gulf owners

Hapag-Lloyd is to merge with UASC. The news follows the Dubai-headquartered carrier being excluded from the new Ocean Alliance announced yesterday.

The merger was first reported online by German monthly business magazine Manager Magazin yesterday, saying “secret negotiations between the two sides are close to a conclusion”.

Hapag-Lloyd has a fleet capacity of around 920,000 […]

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China Shipping and Cosco merge to become China Cosco

From a Reuters report titled ”China launches new shipping giant to battle downturn”:

China on Thursday launched a challenge to global shippers AP Moller Maersk and Mitsui OSK Lines, but analysts said the giant company must slim down its workforce and order book to weather one of the industry’s worst-ever slumps.

Created from the state-driven […]

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Cosco merger may change industry dynamics

From Marine Link:

The merger between China Shipping group and the Cosco Group has given rise to a mammoth company that could trigger stability and extended consolidation in the global shipping industry, says a report in the WSJ.

The merger will free the two Chinese shipping groups from competing against each other at home and […]

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China Approves Merger of Cosco, China Shipping

China’s two state shipping giants will combine their container-shipping assets among other restructuring efforts, as part of a multibillion-dollar merger to strengthen the nation’s competitiveness in an industry battered by weak demand and persistent overcapacity.

China’s State Cabinet on Friday approved the merger between China Ocean Shipping (Group) Co., or Cosco Group, and China Shipping […]

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Analysis: Is shipping in double dip danger?

Drewry Maritime Research asks: will carriers repeat the same tactics that saved them in 2009, or will they wait until things reach boiling point, as the risk of a double dip recession rears its head?

Today’s market does share some similarities to the 2009 crisis: carrier staff redundancies, ultra-low freight rates and the rapid increase […]

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NOL being sold at a discount, Alphaliner says

Excerpts from the Journal of Commerce:

Alphaliner believes the failure of NOL’s shareholders to obtain a premium over its book value will have significant implications for the industry, especially for other potential sellers seeking to make an exit from the container shipping market.

“The discount to NOL’s book value reflects the impairment of the […]

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CMA CGM offers $2.4 billion to take over Neptune Orient Lines (NOL)

Bloomberg reports that, ”Neptune Orient, which has posted losses in five of the past six years, is among a number of shipping companies exploring mergers and acquisitions amid a glut of capacity, declining demand and lower rates that could make this the industry’s worst year since 2009.”

CMA CGM SA offered to buy Singapore’s Neptune […]

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Shares jump as NOL reveals exclusive talks on acquisition

Shares in Neptune Orient Lines (NOL) yesterday surged to their highest in almost seven months, after the container shipping giant said at the weekend that it is in exclusive talks for a potential acquisition by France’s CMA CGM.

NOL shares rose by as much as 6.25 per cent to S$1.19, the highest intraday level since […]

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Container shipping on the cusp of a major shakeup

Plagued by overcapacity and ongoing losses, the container shipping industry is rife with talk of potential mergers and acquisitions. The consolidation of the highly fragmented industry is long overdue, especially when contrasted with such other heavily capitalized transportation sectors as railroads and airlines.

The possibility that a new wave of M&A may be imminent was […]

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CSCL, Cosco in early stages of merger, FMC commissioner says

A U.S. Federal Maritime Commissioner said he was told earlier this week by representatives of China Shipping Container Lines and Cosco that the container lines are in the early stages of a merger.

FMC Commissioner William Doyle told JOC.com that China’s two largest container lines are working to be as transparent as possible regarding the […]

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