Freight Shipping News



UPS has abandoned its proposed €5.2 billion takeover of TNT Express after the two companies were advised on Friday that the EC would reject the deal

In a statement early this week, TNT said: "The case team informed the companies that, on the basis of UPS's current remedy proposal, it was working towards proposing a prohibition decision. "Subsequently, UPS informed TNT Express that UPS sees no realistic prospect that EC clearance can be obtained and that UPS will not pursue the transaction on any other basis."

The Shanghai to Rotterdam element of Drewry's World Container Index jumped 13.8% last week, to US$2,727 per feu, after falling back by a similar number around the Christmas period

The rise is evidence that the lines' strategy of stalling ships in Asia to squeeze out supply has worked. The blanking or voiding of voyages seems to have had the desired effect. Reports are coming in that ships are leaving Asia for Europe around 95% full in the cargo rush ahead of Chinese new year commencing February 10.

More carriers eye Mega Ships:

K Line is looking at opportunities to acquire ultra-large containerships in a move that could see the Japanese shipping giant become the final CKYH member to join the mega-ship club. Meanwhile, United Arab Shipping Co (UASC) has approached a number of shipyards about a huge shipbuilding order that could include vessels of up to 18,000teu. Talks are at a very early stage but if the line does decide to order ships with a nominal capacity of 18,000teu, it would be the only one to have followed Maersk Line, which will take delivery of the first of its Triple-E ships this year."

Hapag Lloyd and Hamburg Sud in merger talks

Germany's two premier ocean carriers are in merger talks to create the fourth largest container line in the world. The executive boards of Hapag-Lloyd and Hamburg Süd issued a brief statement this morning saying they were investigating if, and under what conditions, a merger of both companies would be of interest.

Talks are thought to be at a very early stage, with due diligence just starting, and no guarantees that agreement will be reached to combine the pair. Neither is it clear yet whether this would be a 50:50 merger, or a takeover. The two lines have come close to merging in the past but could never agree on terms and who would have ultimate control.