Shipping - Oetkers mull HAMBURG SÜD sale

HAMBURG SÜD will go to MOELLER-MAERSK till the end of 2017. The shipping arm of Danish conglomerate A.P. MOELLER-MAERSK A/S, the world's biggest shipping company, is to buy smaller rival HAMBURG SÜD (HAMBURG SÜDAMERIKANISCHE DAMPFSCHFFAHRTSGESELLSCHAFT), joining a wave of M&A in the industry just over two months after the Danish company revealed plans to bolster its transport operations. While it has bought or chartered ships from distressed peers like Korea’s Hanjin Shipping Co., which declared bankruptcy in August, Maersk’s last full-scale acquisition was in 2005 when it bought P&O Nedlloyd. The container market is in turmoil since the finance crisis of 2007. Rates for shipping containers fell significantly near sero.

Ottmar Gast CEO of Hamburg Süd - courtesy HAMBURGER ABENDBLATT

According to Ottmar Gast HAMBURG SÜD was courted like a beautiful bride with a big dowage.

The deal, announced by parent A.P. Moller-Maersk (MAERSKb.CO) on Thursday, is the group's first full takeover in more than a decade and highlights a consolidation drive in container shipping, which has been grappling with low freight rates and oversupply. It also follows Maersk's new boss Soren Skou's move to focus on transport and logistics and spin off the company's energy operations. Maersk shares rose more than 5 percent.

Hamburg Süd - courtesy HAMBURGER ABENDBLATT

Hamburg Süd vessel - courtesy HAMBURGER ABENDBLATT

HAMBURG SÜD, part of the OETKER GROUP, is the world's seventh largest container shipping line and operates 130 container vessels primarily in trade between the northern and southern hemispheres. MAERSK has a fleet of more than 600 ships.

"This will provide us with a very strong platform in Latin America," Skou, chief executive of MAERSK LINE and the MAERSK GROUP, said on a conference call, noting "significant" cost benefits from combining the companies' network.

Skou declined to disclose the value of the deal, as OETKER did, but said it would be a cash only transaction, and that MAERSK did not need to sell other assets to ahead with the purchase. He also said MAERSK would be looking at a "light-touch integration" of family-owned HAMBURG SÜD, keeping both the brand name and the company's headquarters in Hamburg. "I would imagine that more consolidation can happen in the future. Even with this acquisition, the market is still quite fragmented, and I would be surprised if this was the final piece," Skou said.

With the acquisition, MAERSK LINE will increase its container capacity to around 3.8 million TEU (20-foot Equivalent Unit), boosting its market share to 18.6 percent from 15.7 percent, it said. MAERSK's combined fleet will consist of 741 container vessels with an average age of 8.7 years, compared with 9.2 years before the deal.

The transaction will help MARSK LINE to boost its presence in global trade, especially in Latin America where HAMBURG SÜD has had a strong presence since its foundation in 1871 by representatives of Hamburg merchant houses.

"It's a smaller and more niche player – it's a good strategic fit for MAERSK," analyst Michael Jorgensen at Alm. Brand Bank said. He described the acquisition as a defensive consolidation. Alm. Brand has a "buy" recommendation on MAERSK.

HAMBURG SÜD has 5,960 employees in more than 250 offices across the world. Last year, the OETKER GROUP's revenue was $12.73 billion and of that $6.26 billion came from its container line activities in HAMBURG SÜD, MAERSK said. Hopefully the strong ties of the employees will stay, as the OETKER GROUP had a very specific employment philosophie which guaranteed loyality. And MAERSK announced not to change it. Therefore with the sale all HAMBURG SÜD employees will get a "Thank you gratification" for being loyal to the company. OETKER GROUP is involved in shipping, banking, luxury hospitality, food and beverages. There had been speculation in the shipping market that the OETKER-family would opt to sell its container business.

Top and below OETKER beverage portfolio beer - courtesy OETKER

OETKER beverage portfolio sparkling wine - courtesy OETKER

Top and below OETKER kitchen aid and conveneance products - courtesy OETKER

OETKER chemistry portfolio - courtesy OETKER

OETKER portfolio banking BANKHAUS LAMPE - courtesy OETKER

The Lanesborough Oetker Collection - courtesy Oetker Hotelmanagement

The sale is not an emergency sale, but to be fit for the future in an uncertain market, massive investments had to be made, which the family could not make on its own, or with his own bank - BANKHAUS LAMPE. "Giving up our engagement in shipping after an 80 year-long ownership in HAMBURG SÜD was not an easy decision for my family," said August Oetker, chairman of the advisory board behind the management holding company of the OETKER GROUP. HAMBURG SÜD has made no losses as some reported, but HAMBURG SÜD was a single in a merging market and alone without any cooperation or alliance. But a well reputated market leader in the South Atlantic trade.

CAP SAN DIEGO, today a preserved Cap San Class vessel, The White Swans of the South Atlantic - own collection

Other container lines have been looking to do deals to build scale. Family-owned French group CMA CGM sealed an acquisition this year of Singapore-based NEPTUNE ORIENT LINES, which has given it market leadership on trans-Pacific routes.

Building scale is behind the growing of OETKER COLLECTION since 2010 when there had been moves to sell the 5star top luxury hotels. Amoung these are the HOTEL CAP EDEN ROC, LE BRISTOL, Paris and others, amoung the new hotels is FREGATE ISLAND in the Seychelles.

International a synoym for South America trading HAMBURG SÜD - poster copy own collection

Last week, the European Commission gave conditional approval to a merger between German container shipping line HAPAG-LLOYD (HLAG.DE) and the UNITED ARAB SHIPPING COMPANY. In 2012/13, a planned merger between HAPAG-LLOYD with rival HAMBURG-SÜD was called off some time as terms could not be agreed. In first place the younger family members had been disagreeing. This solution but was the wish of the politics in the interest of saving employment and taxes in Hamburg, but without a further financial engagement of the city of Hamburg, as in HAPAG-LLOYD. But too the HL puchasing of the Chilenean CSAV was a reason not to merge.

MAERSK containers - courtesy MAERSK LINE

MAERSK said the deal would be subject to final agreement and regulatory approvals, and would have no impact on MAERSK's outlook for 2016. A.P. MOELLER-MAERSK said it expected to give more details following approval of the purchase agreement which is expected early in the second quarter of 2017.

History - HAMBURG-SÜD and the CAP express liner

Comments

Ocean Liners in Movies or Films at Sea (updated Nov 2017)

For liners and the shipping companies movies and films had been a top marketing tool Movies or Films and liners at sea, had been intriguing me since I have read about in my youth in LUXUSLINER - BILDER EINER GROSSEN ZEIT by Lee Server ( THE GOLDEN AGE OF OCEAN LINERS ). But earlier, mot only since my first crossing, I was keen watching movies with liners in it, and disapointed, which was an understatement, when I realized the films have been made in a set ashore in some movie "factory". That was after my first crossing. by Earl of Cruise an essay in progress `Sabrina´, Humphrey Bogart in the office, while LIBERTÉ is sailing out of New York harbor - screenshot Ocean liners, especially those of the luxury category, had been the location of dramas, love stories, thrillers, suspense and catastrophies sinde film was born, or nearly. In this list, the most descriptions are taken from Wikipedia, as I guess no one can expect having seen all these films ... otherwise I w...

Thank You 500,000 readers

Books - Liner scale drawings the story of a long journey to LINERS

Dr. Tamás Balogh told me his long journey with his new book `LINERS ´ of scaled liner drawings. Dr. Tamás Balogh, president of the Hungarian Association of Maritime History ( sorry only in Hungarian ) , Modeling and Tradition, member of the R.M.S. TITANIC Hungarian Research Group start to prepare a graphical presentation of the history of transoceanic passenger liners by scale drawings in 2002. The author leads us through the story from 1838 to the present day using more than 500 profile drawings of 280 liners from 40 shipping companies, with descriptions of the individual liners and the operating companies ( FaceBook LINERS ), which made the collection exceptionally abundant. The collection represents such rarely discussed topics as the history of the late Austro-Hungarian ocean liners or the planned, but ultimately cancelled giant passenger steamers. Earl of Cruise talked with the author, Dr. Tamás Balogh From info to digital art work, here shown for the KOAN MARU - digital ...

HISTORY - FRENCH LINE - COMPAGNIE GÉNÉRALE TRANSATLANTIQUE, a review - Part II Belle Epoque

The COMPAGNIE GÉNÉRALE TRANSATLANTIQUE, known since the Belle Epoque as FRENCH LINE in the English speaking world (or TRANSAT or CGT), had its origins in 1861. by Earl of Cruise E mperor Napoléon III. wanted strengthening the French primacy on the oceans and an adequate mail line for the French mail. The 1855 established COMPAGNIE GÉNÉRALE MARITIME of the Péreire brothers was the core for the new company. This company´s headquarter was, as any major business in France, situated in Paris, while the homeport of the vessels had been Le Havre for the North Atlantic and Marseille for the route to the Orient and Africa. Houseflag of COMPAGNIE GÉNÉRALE TRANSATLANTIQUE S.A. - soure: ebay "On limited space, we put our country on display", a crewmember declared once. And no other line put in more of its national personality into its product than COMPAGNIE GÉNÉRALE TRANSATLANTIQUE . After the French - Prussian/German war of 1870/71 France had to sig...

Luxury Expedition - PONANT has reached 30 years

PONANT , France's number 2 cruise company and world leader in polar expeditions celebrates 30 years of existence. It was on 1 April 1988 that the adventure began in Nantes, where 14 young Merchant Navy officers aged 23 to 29, including Jean-Emmanuel Sauvée, still active as CEO, and Philippe Videau, decided to create the company, which first took the name COMPAGNIE des ÎLES du PONANT (it became COMPAGNIE du PONANT in 2009 and simply PONANT in 2014). PONANT is the only cruise company in France flying the Tricolore. by Earl of Cruise based on an article by Vincent Groizeleau at Mer et Marine LE PONANT in the port of Bonifacio, Corsica - Sourece: Wikipedia ( original seize ) The first ship, built in Villeneuve-la-Garenne, was born in 1991. It is the sailboat and cruise vessel LE PONANT , a modern three-masted ship of 85.5 meters long with 32 cabins, still in service. LE PONANT´s sails became the logo of PONANT. LE LEVANT - Source: Wikipedia ( original seize ) ...

ss NORMANDIE 1935-1942 XIII - Le NORMANDIE the great triumph and tragic end of the greatest ship of France

NORMANDIE at sea - courtsey coloured by Daryl LeBlanc Le NORMANDIE , the greates ship of France, was a great triumph for the French industry, economy the most gracious ambassador of France - a symbol of cultur and Savoir de Vivre. NORMANDIE never surppassed by any liner. But whom the gods love, they beat him to a tragic ending. In case of NORMANDIE the gods let do their dirty job by careless, ignorant and arrogant US Navy officials and their sub contractors. by Earl of Cruise NORMANDIE had 4 years of living and the chance to bring Glitz, Glamour and Luster into a world that was just in front of an abyss since October 1929. Sailing with NORMANDIE , created to cater primarily the First Clas clientele, and enjoying life on board seems to me today, as a Dance on the Volcano, that errupted in 1939. Longitudinal cutaway of PARIS - own collection copy from a CGT broshure ÎLE DE FRANCE , Cie Gle TRANSATLANTIQUE provoking ART DÉCO liner - own collection ...

HISTORY - The CUNARD - WHITE STAR Liner rms QUEEN ELIZABETH (1938-1972)

Over years, in my early youth, the QUEEN ELIZABETH was shaping my mind for the perfect ocean liner, despite having made my first experiences with a liner onboard the HANSEATIC (1), ex EMPRESS OF SCOTLAND, ex EMPRESS OF JAPAN. When leaning at the rail of HANSEATIC entering the port, my eyes where every where and I wished to by a camera, I took all in. And when seeing the QUEEN ELIZABETH with my own eyes, the nice behaving young boy turned into a tomboy, that my grandmére was no longer able to tame ... I did draw quite a lot of looks, back then. I found, while on research, this article and thought it interesting publishing in my blog: written and published by John Sheperd at liverpoolships.org editing and comments by Earl of Cruise I ( John Shepard ) joined the CUNARD LINE in March 1962 as an Assistant Purser and sailed the QUEEN ELIZABETH throughout that year, before transferring to the Liverpool-based CARINTHIA in November, where I remained as Crew Purser for the next five...

HISTORY - EUGENIO C. a masterpiece of Italian design and engineering

EUGENIO C., later EUGENIO COSTA, was a masterpiece of Italian design and is an example of beautifully integrated ship design. Her naval architect, Nicolò Costanzi, and her interior designer, Nino Zoncada, worked side by side, or hand in hand, to create a perfect balance and continuity between the vessel's interiors and the exterior profile. EUGENIO C. became a masterpiece of the 60s design and elegance. by Earl of Cruise Some readers had been asking for interior photographies ... here they are. Eugenio C. Tourist Class A pool, looking aft into the wake line - own collection, copy from my LINEA „ C ‟ broshure EUGENIO C. entered service a little more than 50 years ago in 1966. EUGENIO C. was a child of the swinging 60s, when we had the first jet setters, and still style and elegance. And travelling by jet in those days was still an expensive way to travel for few. I am not the only one wishing the same intent and sensibility would be a guide line for present sh...

HISTORY - SPIRIT OF PROGRESS the Australian luxury day express train

The Australian luxury day express train SPIRIT OF PROGRESS was the most important express train of VICTORIAN RAILWAYS , a state corporation of Victoria , and one of the most important trains in Down Under. The train is a masterpiece of ART DÉCO design from Down Under. The widely unknown train was in service from 1937 till 1986. First the SPIRIT OF PROGRESS did run from Melbourne to Albury , because of the broad gauge of VICTORIA RAILWAYS (1,600 mm). At the boarder between Victoria and New South Wales the passengers had to leave the SPIRIT OF PROGRESS and go on with their trip to Sidney on the standard gauged (1, 435 mm) train of the New South Wales Railway system. In 1962 the SPIRIT OF PROGRESS could run straight to Sydney. But was withdrawn in 1986, caused by the lack of paying passengers. by Earl of Cruise VICTORIAN RAILWAYS S Class steam locomotive 302 EDWARD HENTY trajecting the SPIRIT OF PROGRESS - courtesy © Weston Langford The late 1930's saw a new era in ...

HISTORY - ts / ss BREMEN and ts / ss EUROPA

Germany’s two luxury liners, BREMEN and EUROPA , have not only played an important part in their country’s mercantile revival, but have added also an immortal chapter to the history of transatlantic travel. Copy from Shipping Wonders of the World From part 6 , published 17 March 1936 editing by Earl of Cruise ss / ts BREMEN in her early years - Source: Shipping Wonders of the World/Bundespresse Archiv The PRIDE OF A NATION - the NORDDEUTSCHER LLOYD quadruple-screw turbine express liner BREMEN . The keel of this ship was laid in June 1927. Her launch took place in August, 1928. In less than a year later, the Bremen made her first voyage to America, when she crossed the Atlantic from Cherbourg to New York in four days seventeen hours forty-two minutes, thus setting up a new record and gaining the coveted “Blue Riband”. During the passage the Bremen attained an average speed of 27.83 knots. ss / ts BREMEN in her early years - Source: W ikipedia For the pop...

Search This Blog

Thank You 500,000 readers