It’s the end of the year, and we’re all super busy with the holiday season, so here’s a wrap up (pun intended) of all the shipping news you need to know from the past month:
Mergers & Acquisitions
In surprising news, South Korean shipping company Korea Line Corp., who filed for bankruptcy protection just five years ago, has emerged as the winning bidder for some assets of collapsed Hanjin Shipping Co. K-Line beat out Hyundai Marine Merchant Co. in the bid. Another unlikely pairing is Rolls-Royce and VTT Technical Research Centre of Finland Ltd, who announced a strategic partnership to design, test, and validate the first generation of remote and autonomous ships.
Hapag-Lloyd is set to secure EU antitrust approval for its merger with United Arab Shipping Company. In other consolidation news, the Ocean Alliance will be the biggest of the three vessel-sharing alliances come April 2017. It has published its pro-forma network, including port rotations for each service loop.
The government of Taiwan is outlining a $1.76 billion rescue package for the local shipping scene. This comes after consolidation across the container sector has left the industry wondering what will happen to the island’s main lines.
Earlier this month there was speculation around two companies possibly going to sell - ZIM & Hamburg Sud. ZIM Integrated Shipping Service Ltd., is looking at sale possibilities of its entire global container network. The latter has since been acquired by Maersk Line. More sales are on the way as JOC.com predicts mid-sized liners to be next in line.
Signs of Shipping Growth
Hapag-Lloyd saw a net profit in the third quarter of EUR 8.2 million, which is a strong standing, considering the state of the shipping industry. On the way eastern starboard of the USA, PortMiami had a record-breaking year for both cargo and cruise passengers. Following that news, $33 million in state grants has been allocated to the port over the next five years to help the port better respond to cruise and cargo business.
The Philadelphia Regional Port Authority has announced plans to spend $300 million revitalizing port facilities. The goal? To double container capacity for the city. The plans call for new cranes, warehousing, and storage facilities.
It is a buyer’s market. Maersk Line’s 11 second generation Triple-E class vessels could become the first containerships to break the 20,000 TEU barrier. The vessels are due to be delivered from April next year through May 2018. Let's hope the market is ready to accommodate by then, but this seems to be a longer term investment.
Growth in the shipping industry is not linear. The pace at which the market is evolving is exponential. Read our CEO’s blog post post that explains how this is the case and what port leaders ought to consider to prepare. Technology waits for no one.
General Shipping News
The American Association of Port Authorities sent port platform recommendations to president-elect Donald Trump’s transition team. Trump has put forth a goal of investing up to USD 1 trillion to rebuild America’s infrastructure. The jury is still out as to whether his election will be good or bad for the industry.
Lastly, and in case you missed the Caribbean Shipping Association’s 46th Annual Conference, our latest blog post shares our tech takeaways coming out of the event.
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