Big increase in container volume handled by INTTRA
AUGUST 10, 2016 — Ocean shipping electronic marketplace INTTRA reports that it handled a 17 percent increase in container volume for the first half of 2016 over the same period in 2015.
AUGUST 10, 2016 — Ocean shipping electronic marketplace INTTRA reports that it handled a 17 percent increase in container volume for the first half of 2016 over the same period in 2015.
JUNE 23, 2016 —The Maersk Group Board of Directors today appointed Søren Skou as new Chief Executive Officer of A.P. Møller – Mærsk A/S, replacing Nils S. Andersen, who will leave the
JUNE 14, 2016 — NOL is now part of the CMA CGM Group and is getting new leadership. CMA CGM Group assumed control of NOL last Friday, and today NOL announced that
JUNE 6, 2016 — Consolidation in the container shipping industry is moving forward. Marseille, France, headquartered CMA CGM S.A. today launched an all-cash voluntary conditional general offer for all outstanding shares of
APRIL 21, 2016 — Hapag-Lloyd AG (HL) and United Arab Shipping Company SAG (UASC) say they are currently discussing forms of cooperation including a potential combination of their mutual container shipping operations.
MARCH 30, 2016 — Container shipping giant MSC is partnering with ocean shipping electronic marketplace INTTRA to introduce a customer-friendly solution to new container weight safety regulations. Under the agreement, MSC
FEBRUARY 18, 2016 – Ocean shipping electronic marketplace INTTRA has promoted Inna Kuznetsova to President and Chief Operating Officer. Since joining INTTRA in 2015, Ms. Kuznetsova has served as President of the
JANUARY 21, 2016 — Evergreen Group reports that founder and Group Chairman Dr. Yung-Fa Chang passed away peacefully at the age of 90 in Taipei at 11:05 a.m. on January 20, 2016.
The deal is subject to approval by antitrust authorities.
CMA CGM will make Singapore its Asian regional headquarters and will continue operations under the historic APL branding/
Rodolphe Saadé, Vice-Chairman of CMA CGM, said: “This transaction will represent a significant milestone in the development of CMA CGM. Leveraging the complementary strengths of both companies, CMA CGM will further reinforce its position as a leader in global shipping with combined revenue of $22 billion and 563 vessels. By bringing together the know-how of both teams, the enlarged group will be even better positioned to provide premium services to its customers across all markets. At a time when the shipping industry is facing strong headwinds, scale is more critical than ever to capitalize on synergies and capture growth opportunities wherever they arise. I firmly believe CMA CGM will enable NOL to address the industry’s new challenges. We recognize the strategic importance of Singapore as a key hub for the maritime industry and we are committed to reinforcing its regional leadership.”
Ng Yat Chung, CEO of NOL, said: “The combined market presence delivered by the transaction would achieve the scale needed to enhance competitiveness for NOL’s operations and offer a clear and sustainable long term direction for the combined entity. The transaction would enable NOL to grow as part of a larger entity with the resources of the world’s third largest container shipping line.”
Tan Chong Lee, Head Portfolio Management at Temasek, said: “We are supportive of this transaction as it presents NOL with an opportunity to join a leading player with an extensive global presence and solid operational track record. The combination of NOL and CMA CGM will create a leading shipping company that delivers reliable and efficient service to its customers. Their complementary strengths will yield mutually beneficial results. We also note and welcome the commitment of CMA CGM to enhance Singapore’s position as a key maritime hub and grow Singapore’s container throughput volumes.”
Created in 1978 by Jacques Saadé, CMA CGM is the world’s third largest container shipping firm, with 469 vessels and a global market share of 8.8%. In 2014, the Group handled over 12 million TEUs and generated $16.74 billion in revenues. A founding member of the Ocean Three Alliance with UASC and CSCL, CMA CGM is present across 160 countries, with 22,000 employees in 655 offices, and has a fleet capacity of 1,781 thousand TEUs.
NOL is a leading shipping company operating under the American President Lines (APL) brand. In 2014, the company’s revenues reached $7.04 billion. Currently, NOL has more than 7,400 employees in 180 offices across more than 80 countries and operates 94 vessels, representing 618 thousand TEUs in fleet capacity.
The acquisition will see CMA CGM emerge with a capacity of 2,399 thousand TEUs and combined fleet of 563 vessels, a market share of approximately 11.5% (vs 8.8% for CMA CGM and 2.7% for NOL) and a combined turnover of $22 billion.
CMA CGM has a leading position on the Asia-Europe, Asia-Mediterranean, Africa and Latin America routes, whilst APL is strong along the Transpacific, Intra-Asia and Indian subcontinent shipping routes. The enlarged entity will strengthen its position on strategic shipping routes, especially in key markets such as United States, Intra-Asia and Japan, and will boast a balanced trade portfolio. Following the transaction, the combined group would hold market shares from 7% to 19% on the routes on which it operates.
CMA CGM says it is looking forward to welcoming APL into CMA CGM’s world and intends to retain and develop the APL brand. With a historic presence in the U.S., APL will add to CMA CGM’s operations in this region.
Those initiatives will see it reduce network capacity, shed “at least 4,000” jobs by the end of 2017 and cut back on the ambitious shipbuilding plans announced earlier. It will not exercise previously announced options for six 19,630 TEU vessels and two 3,600 TEU feeders and will postpone its decision on an optional eight 14,000 TEU vessels.
Maersk Line says that, in light of lower demand, these moves will still allow it to grow at least in line with the market to defend its market leading position.
Over the next two years, Maersk Line expects to lower the annual Sales, General & Administration (SG&A) cost run-rate by $250 million with an impact of $150 million in 2016. SG&A savings will be derived from already initiated transformation projects and the standardization, automation and digitalization of processes.
“We are on a journey to transform Maersk Line. We will make the organization leaner and simpler. We want to improve our customer experience digitally and at the same time work as efficiently as possible,” says CEO Søren Skou.
Today, Maersk Line has 23,000 land based staff globally. Organizational transformation and on-going automation and digitalization will, it says, enable it to reduce the global organization by at least 4,000 positions by the end of 2017 with the aim of minimizing redundancies through managing natural attrition.
“We are fewer people today than a year ago. We will be fewer next year and the following year. These decisions are not taken lightly, but they are necessary steps to transform our industry,” says Mr. Skou.
As a response to the current market outlook, network capacity will be reduced in Q4 2015 and throughout 2016. As previously announced, the closure of four services (ME5, AE9, AE3 and TA4) has already been initiated over the last two months and plans are in place to further cancel a total of 35 sailings in Q4.