Hamburg's city parliament approves MSC purchase of stake in HHLA
Hamburg City parliament yesterday voted to approve MSC’s acquisition of a 49.9% stake in the ...
MAERSK: CROSS-BORDER BOOST MAERSK: NIGERIA TERMINAL EXPANSION FDX: 'NON-EVENT' CORPORATE STRUCTURE UPDATE XPO: WINNERS AND LOSERS ODFL: 'SOFTNESS'XPO: FEEL THE PAINKNIN: VOLKSWAGEN IMPACT GAUGEKNIN: VOLKSWAGEN WOESHLAG: US STRIKE VIEWXPO: POSITIVE READ-ACROSSBA: ONE OF THE WORST PERFORMERS XOM: ADNOC DEALXPO: CHALLENGING READ-ACROSS
MAERSK: CROSS-BORDER BOOST MAERSK: NIGERIA TERMINAL EXPANSION FDX: 'NON-EVENT' CORPORATE STRUCTURE UPDATE XPO: WINNERS AND LOSERS ODFL: 'SOFTNESS'XPO: FEEL THE PAINKNIN: VOLKSWAGEN IMPACT GAUGEKNIN: VOLKSWAGEN WOESHLAG: US STRIKE VIEWXPO: POSITIVE READ-ACROSSBA: ONE OF THE WORST PERFORMERS XOM: ADNOC DEALXPO: CHALLENGING READ-ACROSS
UK hauliers have welcomed the news that Maritime Transport has been acquired by MSC subsidiary MedLog, with other box lines expected to review contracts.
“It is clear from the announcement we have seen that Maritime is trying to play this very cool, and that it will continue to operate under the new owner as it operates today,” said one haulage executive.
“However, everyone knows that this change of ownership is a major conflict for a huge number of Maritime’s clients.
“I expect those clients will be seriously reviewing their contracts for termination opportunities. I would imagine they do exist in a change of ownership position such as this, and especially when there is such a conflict of interest, going forward.”
A logistics executive added that the deal had “opened up a world of interest and speculation”, and added: “What will other shipping lines do with their transport, taking into account that neutrality has now evaporated.
“Where will that leave the container haulage sector? If you are Maersk, you probably won’t want MSC doing your container haulage.”
Maersk has worked closely with Maritime Transport for a long time, and observers say the carrier is likely now to seek a new provider. Maersk declined to comment on its vendor strategy.
The acquisition has also prompted interest in MSC’s strategy. The logistics executive asked: “What is MSC’s game plan? To become a full integrator, like the FedEx model, that Maersk has attempted to replicate in surface freight?”
The haulier added: “Medlog [with parent MSC] has not acquired this business to leave it untouched. They have ambitions to deliver an integrated container service and will no doubt look to utilise the services of Maritime to support their clients first and foremost.
“An acquisition of this type can only lead to change in the industry, which can hopefully lead to a stabilisation in prices and the ability for hauliers to achieve a return that actually covers costs – and potentially even delivers modest profit to owners.
“Carriers will be left with few alternative providers that can really support them.”
More than 460 UK haulage companies went bust last year, with big names such as Knights of Old and Youngs Transport exiting the market, while Wincanton was acquired by GXO.
Rivals to Maritime Transport, who will no doubt be racing to sell their wares to MSC competitors, include names such as James Kemball, Pentalver and Swain.
While many of the smaller companies have struggled, others have managed to invest. Swain Group, in a fortuitous move, last week rebranded its Express Freight Services as Swain Container Solutions, while also expanding its operational footprint.
James Kemball, meanwhile, is set to expand its fleet to more than 400 trucks with an order for 61 new Volvo FH 460s.
One observer wondered how being acquired by the world’s largest shipping line might affect family-run Maritime.
“Will this drive new start-ups – and an exodus of staff?”
Comment on this article
Haulier Cat
September 05, 2024 at 7:05 amI wonder if MSC will let the nepotism and management greed continue? Maritime is very top heavy and issues with insurance probably accelerated the sale. Sad to see it no longer owned by John.