Latest merger - WHERE WILL IT END

The latest mega deal in the container shipping business is another stunner.

The Chinese state shipping company COSCO Shipping Holdings Co Ltd  has bid $6.3 bn to acquire OOIL (Orient Overseas International Ltd) owners of OOCL (Orient Overseas Container Line). 70% controlled by the Tung family, OOCL was a leader in many areas of the industry but a relatively small player compared to the giants. However its acquisition by COSCO vaults COSCO into third largest line after Maersk and MSC and ahead of CMA CGM.

The last (ever?) OOCL ship to call in Halifax, OOCL Kuala Lumpur was winding up the old G6 Alliance service. OOCL was not included in a new group called THE Alliance.

But it is not over yet! A 24% owner of CMA CGM, the Yildrim family, is tendering its shares (through a Chinese bank) and it is expected that COSCO will snap them up. Should that be the case they will become the world's second largest container line.  There is speculation by the experts that indeed COSCO's goal is to take over top spot from Maersk.

Paying a bewildering 31.1% over market value of OOCL shows that COSCO is not playing on the same playing field as private industry. Surely someone has to put a halt to this.

OOCL to be part of COSCO 

CMA CGM, (including APL) soon to be part of COSCO

Maersk then to be  #2 ?

Lets hope the various national regulators have the guts that tiny South Africa did recently when it condemned the much less contentious Japanese K-Line, MOL, NYK alliance. That Alliance will not be able to call in South Africa as a result, even though other nations' regulators approved or turned a blind eye to it.

Regulators should find a way to put a halt to either the OOCL buy or the CMA CGM buy. As it is now there is barely enough competition (even though with historically low rates, lines are still competing, but hurting in the process). 

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Bigger ships on the way for H-L

Think this is big?  Wait 'til next month.

 1. Los Angeles Express squeezes through the Narrows, March 29.

There will be bigger ships arriving on the Hapag-Lloyd - OOCL Atlantic Express service starting next month. Transferred from the Pacific Northwest services, where even bigger ships are now being introduced, these ships will be significantly larger than the current post-Panamax ships we see now.
The new ships, Dalian Express and Yantian Express will be 20 meters longer and carry up to 2750 more TEUS.
Here are the numbers:
Los Angeles Express 75,590 gross tons, 85,930 deadweight tonnes, 6750 TEU, 300m long x 40 m wide.
Yantian Express 88,493 gross tons, 100,006 deadweight tonnes, 7506 TEU, 320m long x 42m wide.

With the Narrows now even narrower, due to the pier 9C extension work (about 30 meters narrower I reckon) will we soon be reaching the limit?

E.R. Denmark arrives for Hapag-Lloyd

The post-Panamax container ship E.R. Denmark arrived this morning for Hapag-Lloyd. The 65,792 gross ton ship was built in 2002 by Samsung Shipbuilding and Heavy Industries of Koje for E.R. Schiffs of Germany. (E.R. orginally stood for Ernst Russ)
It was launched as E.R. Denmark, but immediately entered into a ten year charter to APL Lines and was renamed APL Denmark. APL (formerly American President Lines) is the Singapore based subsidiary of Neptune Orient Lines, and provides transPacific container services.
In July 2012, following completion of the charter, the ship was handed by to ER Schiffs and reverted to its original name. Its hull was obviously repainted, and is now a very deep inky blue, almost black.
The ship has a capacity of 5762 TEUS (656 refrigerated) and is typical of the post-Panamax ships operated by Hapag-Lloyd and OOCL on their service from the Far East to Halifax via the Mediterranean..

Vietnam - startlingly clean hull

Vietnam Express sailed this afternoon with a surprisingly clean hull. The ship must have just come out of the shipyard, because there was scarcely a mark on it. A few tug scuffs on the stern and a bit of wave action forward was it. A beautiful sight.
Despite its Hapag-Lloyd sounding name, the ship still displays its OOCL colours and banner. It is actually owned by Nissen Kaiun of Imabari, Japan. It is a post-Panamax ship of 66,462 gross tons, 5888 TEU (including 586 reefers) built in 2007 as OOCL Italy and renamed in 2010.
The re-naming to H-L pattern was apparently to give H-L some of its own presence in the joint service with OOCL,  since H-L is not contributing any post-Panamax ships to the rotation.

Canada Express

Last year a number of the OOCL post-Panamax container ships were renamed from traditional OOCL names to Hapag-Lloyd names. The ships did not change appearance, so the changes were made so that Hapag type names would appear in schedules. It is also likely that the charters were transferred from OOCL to Hapag, thus better reflecting the balance of activity in the service.

One such ship is the former OOCL Dubai, which arrived yesterday as Canada Express, with many Hapag-Lloyd containers visible.

The ship is a typical post-Panamax OOCL vessel, built by Koyo Dockyard in Mihara, Japan in 2006. It measures 66,426 gross tons and carries 5888 TEU. It is owned by Nissen Kaiun of Japan, but managed out of Hong Kong by Fleet Management Ltd (OOCL).

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Thailand Express

The latest addition to the Grand Alliance flotilla arrived in Halifax Monday May 31. Thailand Express, recently renamed and the former OOCL Seattle is holding up Hapag's part of the OOCL/HAPAG/NYK service. Japanese owned, Panamanian flag, this post-Panamax ship, built in 2007, and rated for 5888 TEU now carries a Hapag name, but still shows full OOCL livery.

She sailed late afternoon. That's the tanker North Point anchored off her stern.