Liners unveil Asia-Europe FAK price hikes to arrest steady rate decline
Container shipping lines are looking for a hike in Asia-Europe spot freight rates, announcing a ...
While many investors and financial analysts have their eyes on Kuehne Nagel’s (K+N) interim results, due to be published tomorrow, I’m still digesting the remarks of Klaus-Michael Kuehne, K+N’s honorary chairman and majority shareholder, following the recent rumours that CMA CGM had talked M&A with Hapag-Lloyd.
Mr Kuehne, who is personally invested in Hapag, reportedly said “Hapag-Lloyd would rather take over CMA CGM”, than the other way around.
And Hapag chief executive Rob Habben Jansen dismissed the market reports as speculation, adding he did ...
MSC Aries now bound for Iran, and crisis will be 'a catalyst for higher rates'
Urgent call for breakdown of cargo onboard as General Average declared on Dali
Hong Kong drops out of world's top 10 busiest container ports
Iranian troops seize MSC box ship while Somali pirates net $5m ransom for bulker
Flexport is 'back on track' – now it needs to start growing again
Bottlenecks and price hikes as airlines now avoid Iran airspace
Capture of MSC Aries will further drive up Indian export costs
Iran may now pose a threat to multimodal supply chains via Dubai
Alex Lennane
email: [email protected]
mobile: +44 7879 334 389
During August 2023, please contact
Alex Whiteman
email: [email protected]
Alessandro Pasetti
email: [email protected]
mobile: +44 7402 255 512
Comment on this article
Alan
July 22, 2018 at 6:24 pmIn a way it would be similar to the strategy that Maersk is currently pursuing, by integrating Damco, Terminals and Maersk Line.
But is there any reason why the forwarders need to give up their asset lite, high ROCE business model, to own all these assets? It seems to me that such a strategy will take many years, and a lot of further consolidation to pay off, and risks totally destroying profitability in the meantime, with no certainty of success.
Perhaps this is a necessary step to protect themselves from Amazon, but it is pretty risky to trash your whole business, in the hope of emerging with a credible business model in 5-10 years.
Ale Pasetti
July 24, 2018 at 6:34 amThat’s right, Alan, but relationships play a big part here, and nonetheless K+N, in its current form, runs the risk of destroying value for years to come. Its stock is only ~ 15% higher than seven years ago, ex dividends. Also, with Hapag it could boost ROE with more leverage, although looking at one single metric is seldom a good way to look at a business, and the same applied to ROCE. Btw, I have a follow-up column coming up later this week, where, alternatively, I argue in favour of horizontal integration for K+N… your feedback would be gratefully received. Best, A.