Maersk builds ‘Chinese walls’ as it begins its unified branding
Maersk is looking to build virtual ‘Chinese walls’ between some of its newly integrated brands ...
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By Mike Wackett
The surprising announcement last week of a “global co-operation agreement” between United Arab Shipping Co (USAC) and Hamburg Sud, so soon after the inking of the Ocean Three east-west trade alliance between the Dubai-based ocean carrier, China Shipping Container Lines and CMA CGM adds a new competitive ingredient into the mix of container liner shipping.
According to Alphaliner, the indirect entry of Hamburg Sud into the Asia-Europe and transpacific arenas later this year, via UASC’s involvement in Ocean Three, could add ...
Comment on this article
Andy Lane
October 01, 2014 at 4:54 amI would suggest that UASC has created the Master Strategy for a presently small player with huge ambitions.
The deal with HS will neither add capacity to the East-West trades, nor likely change the total capacity which UASC will hold within O3. UASC having “1/3rd” of the O3 capacity might have been more than it felt that it could realistically fill, so this move will greatly assist them to achieve the slot utilisation levels needed to be profitable.
For UASC to enter new trades on its own steam would have likely meant that it would have deployed small ships with (at least initially) poor utilisation. Access to the HS network which is comprehensive in Latin America provides it with lower costs and less risks.
We should have seen this coming probably, but few did. When the UASC new build orders were placed, it was difficult to see how they would actually get the best out of these. Now they will have one of largest average-sized vessel fleets, lowest costs, and expanding globally to diversify its trade portfolio.
Hats off to UASC, making all the right moves.
Mike Wackett
October 02, 2014 at 6:59 amThanks for your input as always Andy.
Agree the co-op appears like a smart move by both parties.
A marriage made in heaven maybe, but they will have to ramp up their sales & marketing ‘boots on the ground’ (as Soren Skou put it last week ).