Germany’s largest container shipping companies, loss makers Hapag-Lloyd and Hamburg-Sued, are exploring a merger to create a global player better able to survive the sector’s four-year slump.
A combined operator would rank as the world’s fourth-largest after Maersk, Mediterranean Shipping Company and CMA CGM with annual revenue over €10 billion, plus about 250 vessels and 11,500 staff.
“Hamburg-Sued would, in the long-term, run into difficulties in keeping up with the big industry players,” said Westend Brokers Research analyst Klaus Kraenzle. “It’s a good step, potentially giving Germany one global shipping player.”
Container shipping groups have been struggling through the worst slump on record, caused by a weak global economy, oversupply of vessels and low freight rates. – (Reuters)
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