The potential break-up of the current structure of vessel sharing agreements as illustrated by yesterday’s announcement of the Ocean Alliance and, having squeezed fuel use down to the minimum with the trend toward slow steaming being the norm, the box carriers need to find alternative ways to fill the ultra-large vessels that seemed to be an inspiration when their plans were drawn up.
If this latest potential merger becomes reality for the two companies involved, negotiations in their currently proposed form would leave Hapag-Lloyd shareholders holding 72% of the new group with UASC’s owners holding 28%. Hapag Lloyd is the world’s 6th largest container shipping company with a 4.5% share of the global market, Qatari based UASC come in 10th with a 2.7% share. A merger between the two would result in the new group becoming the world’s 5th largest such group. The German registered company’s shares rose to a three month high upon the news breaking.
Photo: Credit Scandi Models.
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