Tag Archives: mergers

Maersk Line to Pay $4 Billion for Hamburg Süd

More mergers in ocean carrier ranks. Payback out of savings in 8 years. And what does this do to alliances?  We’ll find out, won’t we?

Maersk has finalized its purchase of container shipping line Hamburg Süd from the Oetker Group after both boards approved a Sale and Purchase Agreement today.

Source: Maersk Line to Pay $4 Billion for Hamburg Süd – Supply Chain 24/7

By Mike Wackett (The Loadstar) – “Organised chaos” – that’s how one carrier describes the Asia-Europe schedules of the Ocean and THE alliances, believing there’s very little hope of vessels hitting itineraries before June. The source, an alliance member, told The Loadstar the transition of ships and containers from previous schedules to their new alliance hubs […]

screenshot-gcaptain.com 2017-04-28 10-03-26Source: New Shipping Alliances Bringing Chaos to Asia-Europe Tradelanes – gCaptain

EC clears the way for Maersk takeover of Hamburg Süd – The Loadstar

Maersk is one step closer to its proposed merger with Hamburg Sud. It required an agreement for Hamburg Sud to drop out of five other alliances it was a part of when the deal closes, possibly by the end of 2017.  Radical reorganization of the alliances is going to play havoc with shippers’ plans, of course, and require new contracts all around.  The transaction costs to shippers will be substantial.  And no one will defray this burden, unless Maersk and the other alliances cut rates accordingly to help convince shippers to go through the change.

Long term it might benefit shippers.  But in the shorter run it’s hard to see how.

There are still four countries that need to approve the deal, so it will be a while before we learn all the fallout from the merger.

Source: EC clears the way for Maersk takeover of Hamburg Süd – The Loadstar

The terminal connections maze

In the post there is a link to an article from a Drewry analyst about the possibility that more firms will make close relationships with their terminal operators.

If ocean lines and terminal operators consolidate, this would have the effect of improving coordination between that line and the terminal, but would disrupt coordination with other lines. It’s as if American Airlines and O’Hare airport in Chicago made a deal that there would be preferential loading and unloading there for American flights.  Easy to pick up or unload passengers, get baggage, priority for landing and takeoff slots, de-icing (I was just there!), lines for tickets, baggage checking, TSA clearance, and so on.  It would be good for American passengers and cargo, presumably (Perhaps American would drop the unpleasant $25 fee for domestic checked bags!)

So coordination of all air traffic and passenger or cargo handling for the other airlines would be disrupted.  Delays would occur. Any issues that appeared would take longer to settle.  And it would take me longer to get in and out of the airport.

Would it make me choose American if I had to go to O’Hare? Just maybe– but rather unlikely that it alone would be enough to sway me. After all, someone else might still be cheaper.

Coordination has to be horizontal in logistics to be truly better for all customers.

Source: The terminal connections maze – The Loadstar

The Terminal Connections Maze