Germany’s Hapag-Lloyd AG has agreed to merge with United Arab Shipping Company (UASC), creating the world’s 5th largest shipping group. The industry is suffering from one of its worst downturns, and the sector has seen a number a mergers and acquisitions. The group will have an estimated value of $7.5-9 billion.
Fuelled by the downturn, a number of alliances have been formed. Hapag-Lloyd AG is part of the The Alliance, that also includes Taiwan’s Yang Ming, South Korean Hanjin and the three Japanese carriers, namely K Line, NYK and MOL. The 2M alliance includes Maersk and MSC; while The Ocean Alliance, comprises of CMA CGM, China Cosco Shipping, OOCL and Evergreen. The three alliances move roughly 90% of worldwide ocean freight; with alliances changing over time.