Hapag-Lloyd merger comes at a risk

The acquisition of Chilean CSAV will strengthen Hapag-Lloyd on key South American routes, but the German carrier stands to face a massive fleet from the competitors.

Regardless of the economies of scale and savings worth an estimated USD 300 million, the merger between German Hapag-Lloyd and Chilean CSAV still comes at a risk.

The primary goal for the two carriers are the services to and from South America, but the two carriers will face a massive fleet of existing ships and newbuilding orders from the two Maersk Line partners in the P3 alliance, MSC and CMA CGM, along with Hamburg Süd. The three carriers have more than 50 ships similar to the seven 9,300 teu vessels that CSAV has in the pipeline, set for delivery in 2014 and 2015, and many of these 50 vessels are aimed at the same South American routes, says Alphaliner on Tuesday.

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