Freight News, Sea

Hapag-Lloyd and UASC unite to create fifth biggest line

[ July 19, 2016   //   ]

Hapag-Lloyd and United Arab Shipping Company (UASC) signed a business combination agreement to merge both companies on 18 July. The new Hapag-Lloyd will be among the five largest container shipping lines in the world, with 237 vessels and a total  capacity of around 1.6m teu and turnover of about US$12 billion. The combined line will be headquartered in Hamburg and with a regional centre in Dubai.

Hapag Lloyd chief executive Rolf Habben Jansen said the deal would combine UASC’s emerging global presence and young and highly efficient fleet with Hapag-Lloyd’s broad, diversified market coverage and strong customer base and give Hapag-Lloyd access to ultra large container vessels.

The company will also be the key player in the new “THE Alliance” – consisting of Hanjin, Hapag-Lloyd, K Line, Mitsui OSK, NYK and Yang Ming, which is scheduled to begin operation in April 2017 and will cover all East-West trade lanes including Asia-Middle East/Arabian Gulf and Red Sea.

Following regulatory and contractual approvals, the merger is expected to be completed by the end of 2016.


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