mai hien

Yang Ming enters into charter agreements for 10 newbuilds
Wednesday, 01 August 2018 01:51

TAIWAN's Yang Ming Marine Transport Corp says it has secured charter agreements with Shoei Kisen Kaisha for five 11,000-TEUers and another five 12,000-TEUers from Costamare.

The vessels are to be delivered from the second quarter 2020 through to the third quarter the following year, reports Bunkerspot of Adderbury, Oxfordshire.

Said the Yang Ming statement: "With respect to the enforcement of the upcoming IMO rule in 2020 concerning environmental protection, the vessels are designed in compliance with the regulations calling for efficient bunker consumption."

The chartered newbuilds will emit less carbon, use fuel oil containing limited sulphur, and will be equipped with a more efficient ballast water treatment system, said the company.

Yang Ming operates a fleet of 106 containerships of 600,000 TEU. To reduce operating costs and mitigate the environmental impact of older ships, the company has an ongoing fleet renewal programme to replace such ships upon the expiry of their charter agreements.

CMA CGM announces Asia-Africa rate hikes and low water surcharge
Monday, 30 July 2018 04:21

FRENCH shipping giant CMA CGM has announced intra-Asia and African rate increases and a low water surcharge that applies to cargo in eastern Canada.

The rate increase - US$200 per TEU and $400 per FEU - is effective August 1 and applies to cargo from China, South Korea, Taiwan, Southeast Asia and Bangladesh bound for Kenya and Tanzania.

There will also be new FAK rates on cargo originating in India and Pakistan bound for north European and Mediterranean base ports from August 1.

Again new FAK rates will apply on cargo from Asia to Red Sea ports at $300 per TEU from South Korea, Taiwan, southeast Asia and Bangladesh to Kenya and Tanzania.

CMA CGM also announced a low water surcharge from North Europe to Canada's east coast and from east coast Canada to north Europe of $150 per container regardless of size. Again from August 1.

A CMA CGM and Hapag-Lloyd merger - really?
Friday, 27 July 2018 01:35

A week ago we wrote that the latest round of consolidation in the container shipping sector appeared largely complete with regulatory approval for Cosco Shipping to buy Orient Overseas International Ltd (OOIL), but yesterday up pops the story that CMA CGM had approached rival Hapag-Lloyd on a stock-for-stock merger.

The Reuters story quoted financial sources that the idea was for a non-cash merger, as well as quoting a Hapag-Lloyd spokesman that. “These are market rumours without substance”. So is this just another silly season story, or could there be something here that makes a bit more actual sense?

The idea that CMA CGM approached Hapag-Lloyd about a merger does not seem out of the realms of possibility. The company has continued to be active consolidation on both a large scale acquiring Neptune Orient Lines (NOL) in 201 and on a smaller, niche scale recently announcing plans to buy Finnish line Containerships. CMA CGM chairman and ceo Rodolphe Saade has also made it clear the company sees a continued role in industry consolidation.

In addition industry sources indicate that over the last couple of years CMA CGM has continued to make approaches to other companies in the sector over possible M&A transactions.

With the rapid consolidation that the market has seen CMA CGM will actually slip to fourth in global rankings of container lines once Cosco Shipping’s acquisition of OOIL is complete. To further jump up the rankings in terms of size leaves increasingly limited options, particularly on any major scale.

As either the fifth or sixth largest container line, seemingly dependent on what month it is, Hapag-Lloyd in pure numerical terms makes a fairly obvious choice with the combined entity becoming the world’s largest container line with 4.23m teu in capacity, and 19% market share, based on figures from Alphaliner.

However, both companies have been through transactions recently – CMA CGM with NOL, and Hapag-Lloyd with CSAV and United Arab Shipping Co (UASC). Not only are both probably still digesting these moves it limits the ability to finance a major deal – therefore though an all-stock transaction would make sense.

owever, the mechanics of a merger get rather more complex. With the various consolidation moves both companies have undertaken the Franco-Germanic merger would in fact be a near global meeting of cultures spanning Asia, Middle East, the Americas and Europe.


Moreover both companies have been dominant in transactions they have undertaken while adopting different approaches to integration. CMA CGM has maintained brands such ANL and NOL’s APL brand, while names such as CP Ships acquired by Hapag-Lloyd simply disappeared.

Numerically CMA CGM would be the larger, therefore dominant party in a merger, would that be acceptable to Hapag-Lloyd and its shareholders? There would also be the issue of regulatory approvals.

The reality is it looks rather unlikely, but in the rapidly evolving landscape of container shipping the phrase “never say never” springs to mind.

<< Start < Prev 1 2 3 4 5 6 7 8 9 10 Next > End >>

Page 8 of 601