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

Thank You 500,000 readers

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...

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...

Germany and HAPAG - A Journey through History

HAMBURG-AMERIKANISCHEPACKETFAHRT ACTIEN GESELLSCHAFT - HAPAG or HAMBURG AMERICA LINE is reflecting, as Germany, the LLOYD of Bremen, two times of rsing and two times of devasting downfall and a third rise. BORUSSIA , 1856, First Day Cover 1956 of Deutsche Bundespost - own collection Once Germany´s biggest shipping line HAPAG / HAMBURG-AMERIKANISCHE PACKETFAHRT ACTIEN GESELLSCHAFT-LLOYD, merged with it former old Hanseatic rival NORDDEUTSCHER LLOYD in 1970, to now HAPAG-LLOYD, had its peaks and downs, but rose each time on its own to new hights, without any state subsidies. As German mail subsidiaries did never cover the costs for purchasing or mainting the vessels ordered for the specific German mail lines. by Earl of Cruise In this article I used most German Wikipedia links, as they proved to be mostly of better research quality, and surprisinf to me, some English lines and liners have only German written articles, for the others, English Wiki links are to ...

ss NORMANDIE 1935 - 1942 IX

s s / te NORMANDIE starting from cold Owners: COMPAGNIE GÉNÉRALE TRANSATLANTIQUE BUILDERS: PENH Ö ET, St. Nazaire, France by Stephen Carey © , editing by Earl of Cruise This document is almost exclusively about the engineering aspects of NORMANDIE , mainly on how to start her up from cold. If you are looking for photos of the passenger spaces, there is a plethora of them on the web, in Facebook groups - Admirers of the ss Normandie , ss Normandie photographic file , The French Ocean Liners / Les Paquebots Fran ç ais , ss Normandie , GREAT LINERS OF THE PAST & PRESENT , and others, Pinterest and in articles about NORMANDIE here in the blog, please see at the end of the article. Using "ss" for NORMANDIE is quite incorrect, as NORMANDIE was a Turbo Electric vessel and not a steamship, therefore NORMANDIE should be adressed as "te". by Earl of Cruise te / ss NORMANDIE berthed in Le Havre, Gare Maritime May 29th, 1935 - colouring courtesy ...

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...

HISTORY - HAMBURG the Space Ship

HAMBURG , HANSEATIC, stared as Britannic in ` Juggernaught ´, MAXIM GORKIY nicknamed Space Ship ts HAMBURG in DEUTSCHE ATLANTIK LINE colours - own collection, copy from a promotion broschure When HAMBURG was introduced a TV show aired with adventures in the space, their ship was the Enterprise which had a saucer shaped main section and three main arm like pillars holding the saucer as well the two engin sections. by Earl of Cruise The funnel of HAMBURG had quite a resemblance to that particular TV airship, created for STAR TREK by Gene Roddenberry . Axel Bitsch Christensen in front of the ts HAMBURG funnel - own collection, photo originaly owned by Anders Bitsch Christensen This funnel, as controversial it is and was, was only one reason why HAMBURG was nicknamed the Space Ship, but there was another reason, a real one, HAMBURG was the most spacious passenger shipp of her days. Constructing ts HAMBURG from 1966 till 1969 - own collection, copy from my bo...

Heritage - UNITED STATES LINES - a review

In my UNITED STATES LINES historic review I want to show the rise and fall of the last national shipping and post line of the United States of America. by Earl of Cruise © UNITED STATES LINES The UNITED STATES LINES has been at first a transatlantic shipping company that operated passenger, mail and cargo services from 1921 to 1989. The passenger service with oceanliners was offered until 1969 - most famously by ss UNITED STATES . The line became well known in the 1920s, when two valiant rescues were made. These ships involved have been the ss PRESIDENT ROOSEVELT in 1926, and the ss AMERICA in 1929 both under the command by Captain George Fried . 19th Century Since the dramatic ending of the COLLINS LINE in mid 19th century, after successfully crossing the North Atlantic, there has not been any major US American steamship line. The congress was not able giving a push to any new entrepreneur to come. So foreign companies got the main share in post trading and pas...

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 - PACIFIC MAIL STEAMSHIP COMPANY

The PACIFIC MAIL STEAMSHIP COMANY was existing for "just" one hundred years and was in her heydays a backbone for the development of the US West. The PACIFIC MAIL STEAMSHIP COMPANY was founded April 18, 1848, as a joint stock company under the laws of the State of New York by a group of New York City merchants, William H. Aspinwall , Edwin Bartlett, Henry Chauncey, Mr. Alsop, G.G. Howland and S.S. Howland. These merchants had acquired the right to transport mail under contract from the United States Government from the Isthmusof Panama to California awarded in 1847 to one Arnold Harris. The company was sold 1938 last to AMERICAN PRESIDENT LINES , existing only on the paper, was closed down in 1949. by Earl of Cruise CALIFORNIA , PACIFIC MAIL's first ship - Source: Wikipedia CALIFORNIAwas the first steamer built by the PACIFIC MAIL STEAMSHIP COMPANY and she was launched May 19, 1848. She sailed from New York for Panama, via Cape Horn, on October 6, 1848...

Search This Blog

Thank You 500,000 readers