extending maersk's reach southbound
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IN THE MILITARY WORLD, IT'S CALLED 'COLLATERAL DAMAGE,' MEANING UNINTENDED CASUALTIES SUFFERED DUE TO AN OTHERWISE PLANNED ASSAULT OR AIRSTRIKE. THE RESULTS ARE PREDICTABLE; SENIOR OFFICERS APOLOGIZE, CASH PAYMENTS ARE MADE TO SURVIVING FAMILY MEMBERS, AND AN INVESTIGATION IS PROMISED.
IN THE AFTERMATH OF HANJIN'S AUGUST'S BANKRUPTCY, BOTH SHIPPERS AND CARRIERS TURNED TO MAERSK TO SEE WHAT THEY WOULD DO – BUY HANJIN ON THE CHEAP? PICK UP A FEW HANJIN SHIPS?
INSTEAD, MAERSK SENIOR MANAGEMENT ISSUED A MILD STATEMENT THAT SAID THAT WHILE THEY HAD NO IMMEDIATE PLANS TO EXPAND, THEY WOULD LOOK AT OPPORTUNITIES IF AND WHEN SOMETHING WAS AVAILABLE THAT MADE LONG-TERM SENSE.
WHILE MAERSK IS THE WORLD'S LARGEST BOX LINE, THEIR STRENGTH IS THEIR US AND EU ROUTES AS WELL AS THEIR CUTTING-EDGE AND LOW-COST 19,000+ TEU TRIPLE E'S.
FOLLOWING THE HANJIN SHUTDOWN, INSTEAD OF RUSHING TO PURCHASE
THEIR SHIPS AND/OR ROUTES, THEY IMMEDIATELY
RE-CONFIGURED THEIR SCHEDULES IN ORDER TO TAKE ADVANTAGE OF THE
SHIPPER'S 'FLIGHT TO SAFETY' IN LOOKING FOR SPACE (EVEN AT HIGHER
RATES) IN CARRYING PRE-HOLIDAY CARGO
KOREA-EU / KOREA-US ON A CARRIER THEY
TRUSTED.
FORMED IN 1871 BY ELEVEN HAMBURG-BASED TRADING HOUSES TO CARRY THEIR CARGO TO-FROM
LATIN AMERICA, RUDOLF A. OETKER KG BOUGHT HAMBURG SUD IN 1955,
AND EXPANDED IT'S CARGO SERVICES TO WHERE IT'S CONTAINER BUSINESS RANKED IN 2015'S 7TH-RANKED BOX
CARRIER. INTERVENE?
HAMBURG SUD OPERATES 130 CONTAINER SHIPS (2015: 48 OWNED, 82 CHARTERED). THE OWNED SHIPS HAVE A LOAD CAPACITY OF BETWEEN 1,100 AND 9,630 TEU, INCLUDING 21-24% REEFER PLUGS.
THEY ARE PRIMARILY DEPLOYED IN-OUT OF SOUTH AMERICA, WHERE THEY SPECIALIZE IN ADDED-VALUE REEFER CARGO SUCH FRUIT, VEGETABLES, FISH AND MEAT.
THE REMAINING SLOTS WERE FILLED WITH MORE TRADITIONAL LATIN AMERICAN CARGO SUCH AS AUTOMOTIVE PARTS AND TEXTILES.
GLOBAL CONTAINER LINER SHIPPING HAS BEEN GENERATING LOSSES FOR YEARS IN THE
FACE OF RISING OVERCAPACITY. NEVERTHELESS, HAMBURG SÜD HAS
PERFORMED WELL COMPARED WITH ITS COMPETITORS...THE OWNERS AND
MANAGEMENT OF HAMBURG SÜD MUST, HOWEVER, RECOGNIZE THAT ACTIVE
PARTICIPATION IN THE CONSOLIDATION PROCESS OF THE SECTOR CURRENTLY TAKING
PLACE WOULD ENTAIL AN EVEN HIGHER CAPITAL REQUIREMENT.
THEIR DECEMBER 1 PRESS RELEASE ON THE SALE TO MAERSK EXPLAINED
THAT'S WHAT MAKES HAMBURG SUD COLLATERAL DAMAGE TO THE HANJIN DEBACLE; THAT THEY NEEDED TO INVEST IN FLEET OF MEGASHIPS IN ORDER TO REMAIN COMPETITIVE AND (PERHAPS) PROFITABLE.
MAERSK INCREASES IT'S SHARE OF THE WORLD BOX BUSINESS FROM 15.7% TO 18.6%, WHILE INCREASING IT'S VALUE-ADDED REEFER AND PROJECT CARGO, WHILE RUDOLF A. OETKER KG GRACEFULLY EXITS (SUBJECT DUE DILIGENCE) WITH U.S. $ 5 BILLION. ONE HOPES ALL FUTURE CONSOLIDATIONS END SO WELL.
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