Hapag-Lloyd and UASC Makes Big Splash with Merger Agreement

Hapag-Lloyd Wide

Source: www.momentumshipping.net

 

The presence of a major player in the freight forwarding industry continues to grow stronger as we enter the second half of 2016. Hapag-Lloyd, already an influential company in the industry, merged with the Dubai-based United Arab Shipping Company this Monday, creating the world’s fifth-largest container shipping line. The merger is expected to be finalized by the end of this year.

This merger will result in a fleet of “237 vessels that offers a total capacity of an estimated 1.6 million 20-foot-equivalent units, an annual transport volume of 10 million TEUs and a combined revenue of approximately $12 billion.” As owners and operators of UASC, Qatar and Saudi Arabia will own 14 and 10 percent of the merged carrier, respectively.

Rolf Habben Jansen, CEO of Hapag-Lloyd, expressed his enthusiasm for the merger, explaining the benefits that both parties will gain. For UASC, they will gain access to the immense market coverage and strong customer base that Hapag-Lloyd has built up. On the other hand, Hapag-Lloyd will receive new access to the ultra-large container vessels offered by UASC.

This merger comes at an important time for Hapag-Lloyd, which faced a net loss in the first quarter of this year and had to lower this year’s earnings outlook to a more conservative value. Recent recovery rates in July were described as “insufficient and unsustainable”, which leads many to believe that this merger is the big play that Hapag-Lloyd is betting on to generate a more profitable 2017.

Additionally, this will strengthen the competitiveness of the newly-formed THE Alliance, which also includes members “K” Line, MOL, NYK Line, and Orient Overseas Container Line. According to the June 29 Alphaliner, the merger will bolster the alliance’s market share on the trans-Pacific trade to approximately 33 percent and the market share on the Asia-Europe trade to 28 percent. With the recent legal issues the NYK Line is facing on charges of ro-ro price fixing, the alliance will need all the help it can get.

SOURCE: www.joc.com

Additional Information:

Hapag-Lloyd Warns on Profit, Seals UASC Merger Deal (Reuters)

Hapag-Lloyd Announces UASC Merger (The Maritime Executive)

Hapag-Lloyd Drops as Forecast Cut Overshadows UASC Merger Plan (Bloomberg)

A Letter to Our Clients: Port of Oakland to Implement Extended Gate Fee

Client Advisory:

Port of Oakland Update

SSA Terminals OICT Berth 55- 59: OICT TO IMPLEMENT EXTENDED GATE FEE

Due to the severe congestion, the Oakland International Container Terminal (OICT) has been sponsoring extended gates with the assistance of the Port of Oakland’s Transition Assistance Plan (TAP). The current program, expiring during the last week of June was operated free of charge. This will be replaced with a “fee based” program which is detailed below.

In order to continue to operate four extended gates weekly, effective June 27, 2016, OICT Is implementing a $30 per container transaction fee for all LOADED import (local delivery and IPI cargo) and export containers for both the day and night shifts.

  • This will not apply to empty transactions.
  • There is no expiry date for this fee.

Topocean has established an account for the payment of this fee on behalf of our clients per request. Should you have any question please contact your sales representative.

 

If any clients would like to pay the fee directly the links to the options are listed below.

Wire Transfer Instruction Form: https://b58.tideworks.com/WireTransferInstructionSSAOICTB58.xls

 

Advance Payment Notifications: https://b58.tideworks.com/OICTAdvancePaymentNotification.pdf

 

FOR ADDITIONAL INFORMATION, please visit:

http://www.joc.com/port-news/us-ports/port-oakland/oakland-poised-levy-fees-pay-night-gates_20160606.html

 

Sincerely,

Topocean Group

HMM Begins Talk with 2M Alliance, Possible Future Purchase

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Source: www.shippingwatch.com

Earlier this week, Hyundai Merchant Marine (HMM) sent out a newsletter to its customers explaining that it has begun talks with Maersk Line and Mediterranean Shipping Co. (MSC) to join the 2M alliance. With HMM cutting down their recent debt issues and successful meetings with shareholders, the Korea-based shipping company has shifted focus onto forming an alliance for the future.

HMM is currently a part of the G6 alliance, which also includes APL, Hapag-Lloyd, MOL, NYK Line and Orient Overseas Container Line. The alliance’s standing contract is set to expire in March 2017 but due to the recent alliance shifts in the industry, HMM must plan ahead to avoid the risk of being unattended in a world predicated on partnerships. Both the Maersk Line and MSC are part of the most powerful and profitable shipping companies in the world – joining the 2M alliance would help HMM cut costs and improve both service and ratings.

Lars Jensen, CEO and partner of SeaIntelligence Consulting, believes that Maersk Line might be considering buying HMM in the future. Maersk Line surprised many analysts recently with their profitable first quarter despite the slow-down in the industry. By accepting HMM into the alliance and taking over in the future, Maersk Line is looking to further the gap between itself and its competitors.

SOURCE: www.shippingwatch.com

Additional Information:

HMM in Talks to Join 2M Alliance (World Maritime News)

Analyst: Maersk Could End Up Buying HMM (Shipping Watch)

Drewry: HMM Joining 2M Suggests Hidden Agenda (World Maritime News)

Hyundai in Talks to Join 2M Alliance (JOC)

Topocean New Website & Features

Topocean Logo (High Res)

Welcome to Topocean’s revamped website!

As a brief introduction, we hope that this post can help you better navigate the new website layout and offer you Topocean’s full services at your fingertips.

HOME – The Home page grants access to learning more about the services we offer as well as the latest news in the freight forwarding and logistics industry. Shipment tracking can also be done directly through this page.

ABOUT – The About page tells a little about the history of Topocean and who we are as a company today. From this page, users can view “The Topocean Group – We Care” video, an animation that sums up our service and qualities perfectly.

SERVICES – The Services page lists all the services we offer. Here, you will see just how Topocean takes care of our clients from “A” to “Z”.

BRANCH DIRECTORIES – The Branch Directories page has contacts and addresses for ALL our branches. Whether you need to contact someone at your nearest local branch or reach a branch office across the world, this page will have the information you need.

SAILING SCHEDULES – The Sailing Schedules page is used exclusively for checking the collective schedules for all the different carriers.

CAREERS – The Careers page lists all our current job openings within the company. Those who are looking for a career in a dynamic industry within a global environment are encouraged to apply here.

NEWS – The News page is a quick glimpse into the current events taking place in the freight forward industry. By following along these weekly posts, users can learn more about the major shifts taking place within the industry.

CONTACT US – The Contact Us page is the best way for users to communicate with the Topocean team. Just leave your message and contact information, and we will get back to you as soon as possible!

QUICK LOGIN LINKS – Located at the top of each page are quick login links for easy access to the databases you need, such as Shipment Management, Vendor Access, ISF, and many more.

Thank you for taking the time to learn more about Topocean’s new website. We hope you enjoy the interface and that it can streamline and improve your experience with us. If you have any further questions about the website, feel free to contact us via the Contact Us page. Topocean would like to thank its entire staff for their continuing, excellent work and thank you for your unwavering support.

THE Alliance Emerges from Scramble as HMM Continues To Struggle

Source: www.lloydslist.com

Amidst the alliance scramble that began in April, a new alliance has developed between six carriers. Known as “THE Alliance”, the efforts to form this alliance was led by German carrier Hapag-Lloyd and includes Taiwan carrier Yang Ming, South Korean carrier Hanjin, as well as the Japanese carrier trio K Line, NYK, and MOL. This five-year agreement is expected to take effect beginning April 2017.

It is important to note that former alliance carriers HMM and UASC were notably missing from this newly-formed alliance. However, the more-than-likely merger between Hapag-Lloyd and UASC is all but a guarantee that the Dubai-based carrier will join the alliance soon. Rolf Habben Jansen, the chief executive of Hapag-Lloyd, briefly discussed this topic, mentioning that “it is anticipated that UASC will become part of THE Alliance”.

Major concerns regarding the South Korean carrier HMM have developed further after news of this alliance broke out. The financially-struggling carrier issued a statement regarding its absence from THE Alliance, stating that the alliance is “tentative by its nature, and its member companies are yet to be finalised.” The carrier is looking to join the alliance in early June, following the scheduled completion of the company’s business normalisation.

HMM’s main creditor, Korea Development Bank (KDB), testifies to this notion, stating the HMM’s membership in THE Alliance is simply being postponed and that the carrier remains to have the bank’s full support. KDB have been actively appealing to all groups, including stakeholders and other financial institutions, to “join hands supporting HMM”, insisting their cooperation is essential to the success of the debt-ridden HMM. As the landscape of the industry continues to shift, all eyes are on HMM to see what actions the carrier will take in order to stay afloat and find success again.

SOURCE: www.theloadstar.co.uk

Additional Information:

Hapag-Lloyd Unveils THE Alliance (The Maritime Executive)

New Alliance Set to Take on 2M, Ocean Alliance (JOC)

Hapag-Lloyd and Asian Lines Form Six-member Alliance (Lloyd’s List)

HMM’s Joining to THE Alliance ‘Just A Matter of Time’ (World Maritime News)