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THE
two leading German container carriers -
Hapag-Lloyd (HL) and Hamburg Sud (HS) -
are in tie-up talks to create the world's
fourth largest container carrier after Denmark's
Maersk Line, Switzerland's MSC, and CMA
CGM of France.
The
two carriers announced on December 18 that
they were investigating if and under what
conditions a merger would be beneficial
to each other.
If
the merger materialises, the new HL+HS group
will be a giant carrier with a fleet of
250 vessels with an annual revenues of more
than EUR10 billion (US$13 billion), according
to Germany's Der Spiegel.
The
combination seems naturally fit for both
carriers. Der Spiegel said the two carriers
would "complement each other well"
because Hapag-Lloyd specialises in major
Asia-Europe and transpacific trades, while
Hamburg Sud focuses on services to North
and South America, one of the fastest-growing
emerging markets today.
The
two shipping lines are among the top 15
carriers in the world. According to Alphaliner
Top 100, Hapag-Lloyd ranks sixth with a
container market share of 3.8 per cent,
while Hamburg Sud is 12th with 2.5 per cent
market share.
The
merger would create the world's fourth largest
container carrier.
Maritime
analyst Alphaliner said the combined capacity
of Hapag-Lloyd (634,000 TEU) and of Hamburg
Sud (416,000 TEU) would reach 1.5 million
TEU, accounting for 6.2 per cent of the
global capacity.
In
contrast, Maersk Line, the world's largest
carrier, currently absorbs 15.4 per cent
market share with a total capacity of 2.6
million TEU; MSC, the world's number two
carrier, possesses a market share of 13.3
per cent with 2.2 million TEU, and CMA CGM,
the number three carrier, has 8.3 per cent
with 1.4 million TEU.
Initial
comments from industry analysts are positive.
SeaIntel
analyst and CEO Lars Jensen told Denmark's
ShippingWatch that the merger of the two
largest German carriers would form a "formidable
player on the market to and from South America,"
as well as on the entire reefer segment.
"As
opposed to Hapag-Lloyd, Hamburg Sud has
an extensive order book, consisting of 40
per cent of the tonnage employed by the
shipping company. Over the next year, Hamburg
Sud will take delivery of a series of 10
ships, of just under 10,000 [TEU]. The shipping
company has a very high intake of reefer
containers, and thus the shipping company,
with 1,700 reefer outlets on its ships,
matches the major reefer-designated ships
that Maersk Line has acquired for the routes
to South America," Mr Jensen said.
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