Marine Link
Saturday, January 20, 2018

Hamburg Süd Seeks Options after Failed Hapag-Lloyd Merger Talks

Maritime Activity Reports, Inc.

June 18, 2014

Hamburg Süd's Cap San Nicolas in the South China Sea (Photo courtesy of Hamburg Süd)

Hamburg Süd's Cap San Nicolas in the South China Sea (Photo courtesy of Hamburg Süd)

Germany's second biggest container shipper Hamburg Süd is seeking options for the business after merger talks with bigger rival Hapag-Lloyd failed last year, Chief Executive Ottmar Gast said on Tuesday.

"We are working on alternatives," Gast told reporters at the results news conference of Hamburg-Sued parent Oetker Group.

Gast, who is part of the four-member management group of Oetker Group's holding company Dr. August Oetker KG, did not provide details, noting only that "size isn't everything".

Hamburg Süd and Hapag-Lloyd ended talks in March 2013 to create the world's fourth-largest shipper after failing to agree on which of the two should have management control.

Shipping groups have struggled with the worst slump on record, with a weak global economy, oversupply of vessels and low freight rates providing impetus for sector consolidation.

Hapag-Lloyd in April this year signed a deal with Compania SudAmericana de Vapores to take over the Chilean's shipping company's container business and create the world's No. 4 player behind Maersk Line, part of Danish conglomerate A.P. Moller-Maersk (MAERSKb.CO), Switzerland's Mediterranean Shipping Company and France's CMA CGM.

Hamburg Süd's revenue declined 4 percent to 5.25 billion euros ($7.1479 billion) last year, the Oetker Group said on Tuesday. The company does not disclose profit figures.

($1 = 0.7345 Euros)

(Reporting by Matthias Inverardi; Writing by Marilyn Gerlach, editing by David Evans)

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News