Dismissals at J. Lauritzen, new cases in the wake of OW Bunker, and the crisis in the oil and gas sector leading to fresh firings at Maersk Oil – these were among the top stories on ShippingWatch this week.
Hapag-Lloyd has launched the process to streamline UASC and execute its redundancy plan. Rumors are circulating at the soon-to-be former HQ of the Arabic container carrier in Dubai. ShippingWatch can present the new regional manager who will effectively replace UASC CEO Jørn Hinge.
The new South Korean container carrier SM Shipping, built on the remains of Hanjin Shipping, will have to gather close to 90,000 containers if it wants to launch operations in March. A spokesperson from SM Shipping explains that the carrier is working at full steam to solve the problem.
Since the turn of the year, the share price in Orient Overseas Container Lines has skyrocketed by 20 percent, and the group's container carrier looks poised to become the container industry's next acquisition, according to Alphaliner.
Eimskip could be hit by a labor strike unless the carrier is able to settle an agreement with its seafarers before Monday. Negotiations are still underway and the Icelandic carriers remains optimistic about resolving the matter.
Seago Line, which is owned by Maersk Line, is changing the composition of its executive board, which will go from seven members to four. For the carrier, it will be "business as usual" going forward, says Maersk Line to ShippingWatch.
Remarkably few changes to the timetables announced by the two new and major container alliances set to launch in April 2017 come as good news for the major North European ports, of which several were hit by fewer calls last year, writes Drewry.
Investment bank Jefferies believes that Maersk Group's new strategy will create more value for shareholders. There are good opportunities for synergies in the transport division, while future divestments of the energy companies could free up billions of dollars, according to the bank.
Interview with Maersk Tankers' new CEO, Christian Michael Ingerslev, a new Asian container alliance, a surge in dry bulk shares, and rigs ready to be scrapped in the North Sea were some of this week's top stories on ShippingWatch.
Spot rates on the 11 major East-West routes between Asia and Europe climbed to a 20-month high this week, according to Drewry's World Container Index. Further rate increases are expected in the week to come.
SM Group, which is in the process of acquiring Hanjin's route network between Asia and the US, is considering establishing a new container carrier under the name SM Shipping. It has until now been thought that SM Group would place the network under its carrier Korea Line.
Two container vessels from APL and Wan Hai have collided off the port Pasir Guadang in Malaysia late Tuesday, report several media. Upwards of 300 tons of bunker oil were spilled from one of the vessels.
With the prospects of a prolonged trade slowdown and continued low freight rates, Asia's container lines look set for further consolidation in 2017, projects Hyundai Merchant CEO. Analysts point to possible Taiwanese container merger.
The board of directors at Korea Lines' owner, SM Group, has voted no to the acquisition of Hanjin Shipping's Asia-US network. But the transaction could still be cleared as it is not contingent on shareholders' approval, informs a spokesperson.
Hyundai Merchant Marine (HMM) is entering a new alliance with the two South Korean carriers Heung-A Shipping and Sinokor on intra-Asian services after recently failing in attempts to be included in the 2M alliance between Maersk Line and MSC.
Increasing pressure on all business segments meant that big decisions had to be made at Maersk Group's headquarters in Copenhagen, but stock market developments suggest that the outcome has been positive.
The world's two largest container carriers have expanded their Pacific network, most recently on Dec. 26, causing problems for ailing South Korean partner Hyundai Merchant Marine, which according to Alphaliner is now left with an unrealistic growth plan.
Mitsui OSK Lines was blamed for a dramatic 2013 wreck, Hyundai Merchant Marine lashed out at Maersk Line, while Kristian Mørch talked about his turnaround of Odfjell this week on ShippingWatch, which also brought news about Thorco, Rickmers Maritime, and the oil sector.
Bondholders' rejection of Rickmers Maritime's restructuring proposal for the crisis-struck carrier could mean "a long and painful liquidation of the company," says Søren Andersen to ShippingWatch. Divestments are a necessity.
The smaller and independent container carriers outside the alliances have a combined market share of 13 percent on the trade routes between the Far East and North America, and this could undermine attempts to increase the rates.
MSC has signed a deal to acquire Hanjin Shipping's stake in Total Terminals International, which covers the terminals in Long Beach and Seattle in the US. MSC will thus become sole owner of the terminals.
Bondholders in Singapore-based Rickmers Maritime have voted against a restructuring of the financially ailing company. The question of whether or not Rickmers Maritime will be able to survive is once again on the table.
Reuters reports that several banks will reduce their lending to Arabian carrier UASC in particular in relation to the merger with Germany's Hapag-Lloyd, which the two carriers are currently working to complete.
Credit ratings agency Moody's downgrades Maersk Group from Baa1 to Baa2 and outlook negative. The move is a direct consequence of the group's strategic restructuring, which means that the former conglomerate is being split into two parts.
Senior management at Hyundai Merchant Marine says that Maersk Line and MSC cast an unfavorable light on the South Korean carrier during negotiations concerning membership of the 2M alliance. The statement comes shortly after the three carriers have formed a strategic partnership.
A court has ruled that Japan's largest carrier, Mitsui OSK Lines, and not shipbuilder Mitsubishi, is responsible for the wreck of container ship MOL Comfort, in which the ship broke in two. A milestone in the case, says lawyer Jesper Windahl, Windahl Sandroos & Co., who anticipates several new claims.
Many of Maersk's oldest container ships sail under the Danish flag, according to a review done by ShippingWatch. As such, the carrier may have to make good on its threat of out-flagging if Indian shipbreaking beaches are not approved by the EU.
Maersk finally presented its plan for what the group will look like going forward, and what will be sold off. The group also received some rare criticism from Denmark's conservative government. A new shipping bank saw the light of day, and another wants to be global. Here are this week's top picks on ShippingWatch.
It is not okay for Maersk to flag out its vessels in order to be able to continue scrapping them in yards at Alang in India. However, it is not illegal, says Danish environment and agriculture minister Esben Lunde Larsen at a consultation in Parliament regarding scrapping.
"We're absolutely determined to stay investment grade," Maersk CFO Jakob Stausholm tells Bloomberg, after observers such as Danske Bank have warned that Maersk is at risk of being downgraded to a junk rating.
South Korea's Hyundai Merchant Marine is withdrawing its part of the bid on the Long Beach terminal in California alongside MSC, citing the company's low credit rating, reports the Wall Street Journal.
That Maersk Line and APM Terminals are completely independent of one another – a factor often stressed by Maersk Group itself – is now being questioned due to the new strategy. APM Terminals CEO Morten Engelstoft has started the task of calming down nervous customers.
Consultancy firm PwC has submitted its report concerning Hanjin Shipping's fate to the court in Seoul. The accountants have not spent time calculating the financial benefits of restructuring the carrier, currently under court receivership.
Closer cooperation, reduced investments, and increased efficiency. These are three of the key words in Maersk Group CEO Søren Skou's plan for how Maersk will be transformed, going forward, into a company operating exclusively in the container industry.
If Hyundai Merchant Marine is able to improve its business results within three years, the carrier could become a full-fledged member of the 2M alliance, HMM says at a press briefing on Monday. Maersk will only confirm, to ShippingWatch, that the parties will discuss a potential membership.
Maersk Line, Mediterranean Shipping Company (MSC), and Hyundai Merchant Marine (HMM) on Sunday announced a new strategic cooperation, Maersk Line informs. "It will enhance the 2M network in the Pacific," says Søren Toft, Chief Operating Officer, Maersk Line.
Things are far from as good as just a few years ago when consistent profits were the order of the day at intra-Asian carrier MCC. In an interview with ShippingWatch, CEO Tim Wickmann explains how a four-point plan is key to maintaining black figures.
Based on numbers from Brazilian analyst agency Datamar, Solve Shipping in São Paulo ventures a precise guess as to how big Maersk Line and Hamburg Süd will be on the crucial and profitable reefer market out of South America's large agricultural land.
SM group, which owns Korea Line, has abandoned its offer for Hanjin's share of terminal company Total Terminals International. Instead, Hyundai Merchant Marine and MSC seem to be the obvious candidates to buy the company, which covers the terminal in Long Beach, US.
The mere emergence of new constellations in the container industry – now that 20 carriers have shrunk to 12 in just two years – could have an impact on rates as soon as the next few months, writes SeaIntel in a new analysis.
South Korean Hyundai Merchant Marine's negotiations concerning the carrier's possible participation in the 2M alliance with Maersk Line and MSC have, according to a Korean news outlet, been fraught with problems. A meeting in Copenhagen on Tuesday could prove decisive.
Within the next two weeks, 2M carriers Maersk Line and MSC will be able to present an agreement with South Korea's Hyundai Merchant Marine, say sources with knowledge of the process to ShippingWatch. The South Koreans believe that HMM will join the 2M alliance.
Singapore-based carrier APL has improved its performance after being acquired by CMA CGM. Freight volumes in the third quarter of the year grew 9.9 percent, aided by more than 20 partnership agreements with CMA CGM.
Last call is approaching for large container carriers looking to join in on the consolidation wave, says analyst Lars Jensen of Seaintelligence about Maersk Line's acquisition of Hamburg Süd. He also thinks that the deal could lead to Maersk closing one of its specialized brands.
Even though Maersk Line's acquisition of Hamburg Süd is seen as the last remaining piece of the consolidation puzzle taking place in the global container sector, there is sure to be more on the way, says Maersk Line CEO Søren Skou, who plans to maintain Hamburg Süd's brand and Hamburg headquarters.
International container carriers have to a large extent picked up Hanjin Shipping's market shares on the key Asia-US routes. This applies to Maersk Line and MSC's 2M alliance and Chinese Cosco, in particular, according to data from Busan Port Authority.
French CMA CGM is, despite the carrier's extremely high debt burden, a serious challenger for Maersk Line in the takeover of Hamburg Süd, although the price of approximately USD five billion is high, notes Alphaliner.
SM Group, which owns Korea Line, wants Hyundai Merchant Marine to join the acquisition of Hanjin Shipping's terminal in Long Beach, California. The transaction remains subject to state-owned Korea Development Bank agreeing to lend the money to Hyundai.
The EU Commission will definitely take a critical stance on the size of the market share that would potentially befall a combination of Maersk Line and Hamburg Süd, says Lars Jensen of Seaintelligence Consulting.
While alliance partner Maersk Line is prepared to change flags in order to dodge the EU's coming shipbreaking regulations, Italian-owned MSC opts for a different stance. Maersk Line is also not backed by its major competitor CMA CGM.
Hundreds of dockworkers from various countries will travel to Aarhus, Denmark on Dec. 2 to demonstrate against Unifeeder in a conflict about lashing, informs the European Transportworkers' Federation (ETF).
On Dec. 13 when Maersk Group presents more details in the conglomerate's new strategy at its Capital Markets Day, topics at the top of the agenda will include transport, digitalization, and the divestment of Maersk Oil, reports Danish media Berlingske.
Rickmers Maritime Trust is considering sending a Panamax vessel of only 7 years to be scrapped. In 2009, the youngest vessel to be scrapped was 24 years old, but overcapacity since then has pushed the scrapping age to drastically decline. A positive sign, according to one analyst.
State aid and cheap public financing for ailing shipping companies damage natural market forces, say both shipping organizations and carriers in critical statements after Taiwan announced a large subsidy scheme for the country's shipping sector.
The 2M alliance between Maersk Line and MSC has increased its capacity by 30 percent on the Pacific since the collapse of Hanjin, but the partnership between the two carriers is starting to show some cracks in the foundation, notes Alphaliner.
Consolidation of the container market could be delayed by governments providing aid to their struggling carriers. Most recently, Taiwan came forward with a large loan package, while South Korea is also working on a fund to finance vessels.
For Hapag-Lloyd to get the desired advantages out of the merger with UASC, approximately every tenth position will have to be eliminated from the two carriers' total current staff, says the CEO of the German carrier, Rolf Habben Jansen, in an interview with ShippingWatch.
As South Korea's Hanjin Shipping moves towards a complete shutdown, the carrier's many employees stand to lose their jobs. The company's CEO is now asking competitors such as Hyundai Merchant Marine for help to find work for the many employees.
2M partners Maersk Line and MSC are believed to have completely given up on reaching a vessel sharing agreement with South Korean carrier Hyundai, as had been flagged by the three carriers in July just before Hanjin's collapse.
Trouble for the ailing tax structure in Singapore-based Rickmers Maritime will not have consequences for Rickmers Holding. The company is completely separate from Rickmers Holding, maintains the German shipping group.
After container carrier Hanjin's Pacific activities have been set to be sold to Korea Line, the decision concerning what will happen with the rest of Hanjin's assets was expected before Christmas. This decision has now been pushed back to February, reports Yonhap.
Container carrier CMA CGM has significantly increased revenue as well as transported volumes following implementation of the NOL acquisition. But a profit in the third quarter last year transformed into a massive deficit this year.
Speculations about an upcoming sale of Hamburg Süd have intensified, and Maersk Line is but one potential buyer, albeit the most likely. The price may seem high but the biggest obstacle could be the internal power struggle in the Oetker family. ShippingWatch has delved into the story.
DFDS delivered another strong quarterly result during the past week of financial reports from several carriers, Maersk got burned by its own restructuring, and both bulk and tanker saw more setbacks. These were just some of the top stories this week on ShippingWatch.
Wan Hai – the world's 17th largest container carrier – has been brought to its knees by the dire market for container shipping, according to Lloyd's List, as profits shrunk significantly in the third quarter this year. The carrier has rejected a merger proposal.
It has now been confirmed that South Korea will get a new deep sea container carrier by the name of SM Line. The carrier is owned by SM Group, which purchased Hanjin Shipping's Asia-US service network last year.