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Saturday, February 22, 2020

United Arab Shipping Co News

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What next for THE Alliance? - Drewry

Hanjin’s bankruptcy leaves the proposed carrier grouping THE Alliance at a size disadvantage to both its future rivals. Might a replacement be called up? The container shipping industry is in a state of flux at the moment and nobody can honestly say they know for certain what the landscape will look like in six months from now. Even before Hanjin Shipping filed for bankruptcy protection the industry was preparing itself for big changes to the make-up of the major shipping alliances, which from April next year are scheduled to downsize from four to three.

Photo: United Arab Shipping Co

UASC, Hapag-Lloyd Merger: No Layoffs?

Will there be a layoffs after United Arab Shipping Co (UASC) merging with the German container shipper Hapag-Lloyd? Middle Eastern enterprise UASC expects most of the tie-up’s $400 million cost savings to come from operations rather than layoffs, The National reports quoting UASC chief executive Jorn Hinge. UASC's initial hypothesis is there will be fewer layoffs than many people would normally expect in a merger, he said. The largest portion of this amount comes from deploying the optimal size ship for each of the trades where the combined company will operate, he added.

Photo: United Arab Shipping Co

UASC to Sell Chemical Tanker Unit

United Arab Shipping Co (UASC) is considering the sale of its stake in United Arab Chemical Carriers (UACC) for oil and petrochemicals  as part of its plans to merge with German container line Hapag-Lloyd, says Bloomberg. UASC hopes the sale will fetch over $600m, but deliberations are ongoing. Bank of America Corp has been tasked with finding buyers for the holding, says the report. The company held 95 percent of UACC according to the chemical shipping firm’s 2012 financial report, the most recent one available on the company’s website.

Photo: United Arab Shipping Co

UASC Shareholders Back Hapag-Lloyd Merger Talks

The Middle East container shipping group United Arab Shipping Co. (UASC ) met with shareholders at the company's corporate office in Dubai to discuss a possible combination with German rival  Hapag-Lloyd, but no decision was finalized. According to sources, Shareholders in Ocean carrier were supportive during extraordinary general meeting (EGM), but no decision on merger. "While the shareholders' representatives at the EGM were generally supportive of the ongoing discussions with Hapag-Lloyd and recognised the strategic value of a potential combination of both businesses…

Photo: China Cosco Shipping

China Cosco Shipping to Maintain Alliances until Expiry

China Cosco Shipping plans to retain its current container alliances until they expire, after which it plans to sign a new deal, it said on Monday. The group's spokesman, Yu Zenggang, did not say when the current alliance agreements were due to expire. China COSCO , a unit of COSCO, is part of the CKYHE alliance with Kawasaki Kisen Kaisha, Yang Ming Marine Transport, Hanjin Shipping and Evergreen Marine, while China Shipping Container Lines , a unit of China Shipping Group, CMA CGM CMACG.UL and United Arab Shipping Co make up the Ocean Three alliance.

Photo: CMA CGM

CMA CGM Expects Market-beating Container Volumes Again This Year

French-based CMA CGM, the world's third-largest container shipping firm, said on Monday it expects its volume growth to outperform the market again in 2016 after strong expansion last year helped it cushion a slide in freight rates. CMA CGM, which is in the process of acquiring Singapore's Neptune Orient Lines (NOL) for $2.4 billion in its biggest-ever deal, has been pursuing economies of scale to ride out a shipping downturn linked to vessel oversupply and faltering economic growth.

Image: China Cosco Shipping Corporation

Consolidations to Reshape Ship Alliances

Several of the world’s top container lines are entering in different vessel-sharing alliances following the current wave of mergers and acquisitions among carriers, reports China Daily. There has been reports that had shocked the containership transport industry - the possible mega-alliance between French liner CMA CGM and China Cosco Shipping (COSCOCS), the recently merged China’s biggest shipping line. Formed by Denmark's Maersk Line and Switzerland's Mediterranean Shipping Co SA…

Photo: China Shipping Container Lines Co

China Shipping Line to Buy 10 Vessels

China Shipping Container Lines Co is planning to buy around 10 ultralarge container ships for around $1.5 billion, despite the shipping industry struggles with a capacity glut, reports WSJ. The company wants to fulfill capacity commitments in its Ocean Three alliance with France’s CMA CGM SA and the United Arab Emirates’ United Arab Shipping Co. The new ships would add to an estimated 30% excess capacity in the water between Asia and Europe. The glut has led to falling freight rates that often don’t even cover the fuel cost of vessels.

Photo: CMA CGM Group

China, France Sign deal Shipping

Industrial cooperation is high on the agenda during Premier Li Keqiang's stay in France. China's deals with the world's third largest container shipping group - CMA CGM was highlight. "July 1st will be a milestone in our Group’s history. The Chinese Prime Minister’s visit is a great recognition of the unique links our Group has developed with China, a strategic country in the Group’s development history. Those two agreements signature reinforces those links and offer new perspectives. We are proud of the honor and of the confidence that this visit demonstrates," said Jacques R.

Ocean Three service

Ocean 3 launched at the AGCT, Rijeka

China Shipping Container Line’s (CSCL) Xin Qin Huang Dao recently made its maiden call at the Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.’s (ICTSI) container handling facility in the Port of Rijeka, Croatia, which marked the launch of a service of the Ocean 3 alliance, connecting Rijeka and other European ports to Asia and North America. The vessel arrived at the AGCT last 18 February and is deployed to Ocean 3’s Phoex / AMX8 / AMC4 weekly service. In September 2014, shipping lines CMA CGM, CSCL and United Arab Shipping Co.