Hapag-Lloyd, Hamburg Süd merger

German carriers Hapag-Lloyd and Hamburg Süd have  confirmed that they are exploring the benefits of a possible  merger. If the marriage goes ahead, what might it mean for the  two companies’ customers and does the move suggest more  industry consolidation to come?

On the face of it a straight 50-50 merger looks like a very sound  idea with few obvious downsides aside perhaps from some staff  attrition where the organisations overlap, such as reefer and Latin American trades.

 

The cultural fit is good and the service networks  complementary. Hapag-Lloyd is predominantly East-West trade  oriented as a member of the Grand Alliance (G6 in Asia- Europe) and Hamburg Süd being a non-alliance affiliated North-

South trade specialist. This should not upset the competition authorities.

Drewry counts seven joint Hapag-Lloyd / Hamburg Sud services: one transatlantic; two Europe-West Coast South America; two North America-Oceania; one Asia-Oceania; and  one Europe-Mideast/Indian subcontinent. Meanwhile, both  carriers share a presence, either in a ship operating or slot charter basis on 13 more liner strings within their individual  service networks. This partial service alignment would help to smooth the network integration if a deal goes ahead this time.

The merged entity would become the world’s fourth largest container operator with a ship capacity of approximately 1.05 million teu, based on each carrier’s existing fleet. Moreover, the merged company’s orderbook would consist of 32 newbuilds with an aggregate capacity of about 220,000 teu.

Apart from the operational benefits, a merged entity will be able to achieve higher cost efficiencies from procurement, bunkers, chartered vessels, as well as route and network optimisation.Perhaps more importantly, the merged $12 billion revenue company would get better access to both bank debt and the capital market.

The German tryst is not the only merger under discussion. Talks have also been on-going between Chinese carriers Cosco and China Shipping Container Lines (CSCL), leading some to wonder whether these year-end flirtations herald a new round of industry consolidation.

Regardless of how these discussions proceed, Drewry does not believe they will spark off a new wave of M&A activity. Shipping lines do not have the resources to fund such deals, nor the will to take on complex organisational integrations. Besides, valuations will be a challenge, as no target company will appreciate the lack of value an acquirer would be duty bound to attribute to it.

Drewry believes that consolidation in the industry will only take two forms: either corporate failure, or an acceptance that exit from liner shipping is the only sensible strategy; or a defensive merger. The Hapag-Lloyd-Hamburg Süd merger fits the latter.  The fact that there have been no significant takeovers in over six years since AP Moller-Maersk purchased P&O Nedlloyd and  Hapag-Lloyd bought CP Ships, suggests that there isn’t much of an appetite for such deals.

Fuente Drewry

Cosecha de cerezas chilenas afectada por lluvias

Fuente: Portal Fruticola

20 de Diciembre de 2012

Una primavera compleja para la fruta

El año pasado Chile exportó 14.5 millones de cajas con cerezas. Estimaciones iniciales para la actual temporada se ubicabnn en 16 millones de cajas cifra que, debido a factores climáticos – falta de frío invernal, granizos y lluvias en floración y pinta – se ha reajustado a 10 millones.

Y es que el clima ha mantenido en alerta a los productores de la fruta, los cuales han debido hacer frente a diversas precipitaciones en las zonas productivas.

“Hemos tenido 7 lluvias de flor a cosecha, entonces todo ha ido mermando”, comentó a www.portalfruticola.com Antonio Walker, productor de la fruta. “Hemos tenido una primavera complicada para la cereza”, agregó.

Walker catalogó como “gravísima” la situación que se registra en la VI y VII regiones del país, las cuales se vieron afectadas por un nuevo sistema frontal durante la jornada de ayer y que se presentan en plena época de cosecha de la fruta.

“Estamos viendo los primeros efectos de las lluvias y son muy malos”, dijo. “A la VI región el día de ayer (martes) le quedaba un 10% de fruta y este frente afectó muy fuerte a la VII región y al sur”.

“Nosotros llevábamos un 50% de nuestra cosecha y el efecto que estamos viendo ahora, lo que nosotros tenemos medido en los huertos es que hay un partidura muy importante, realmente grave”, dice, detallando que ya se ve un 25% de partidura en lo que hay en los árboles.

A pesar de los efectos de las precipitaciones el productor señaló que hay ciertas variedades menos afectadas, como es el caso de la Regina, la cual es más resistente a las partiduras. Por otro lado indicó que este sistema frontal va a tener un impacto en la Sweet Heart.

Exportadoras como Exportadora La Purísima Ltda – que concentra su producción en la VI y VII regiones, desde Rancagua hasta Río Claro – nos comentó que están tomando las medidas necesarias para llevar la producción controlada, disminuyendo casi a cero las nuevas pérdidas al minuto de la cosecha luego de las lluvias.

Por factores climáticos, como la falta de horas de frío entre otros, la empresa experimentó una caída del 50% en los volúmenes totales, reflejado desde la floración y por ende en la cosecha.

Actualmente La Purísma maneja las variedades Bing, Lapin, Sweet Heart, Kordia y Regina. La fruta tiene como destino Lejano Oriente, EE.UU y Europa.

Respecto a que pueden esperar los importadores de la fruta, Walker destacó que Chile es muy profesional en lo que hace, por lo que se les puede asegurar que contarán con fruta de “muy buena calidad”.

Por medio de un comunicado la Federación de Productores de Frutas de Chile (FEDEFRUTA) también manifestó su preocupación ante las intensas lluvias en plena época de cosecha en la zona centro sur de Chile.

La entidad informó que mientras en la VI región el adverso clima podría afectar entre un 10% a 20% de la producción, en la VII y VIII región, las pérdidas oscilarían entre un 25% a 80%, según estiman los productores afectados.

Cristián Allendes, presidente de FEDEFRUTA lamentó esta situación y explicó que “era una temporada en la cual los productores tenían muy buenas expectativas. Se estimaba un crecimiento en torno al 10% respecto de la campaña anterior, equivalente a 16 millones de cajas de exportación, sin embargo, las condiciones climáticas ocasionaron serios daños e hicieron que las estimaciones para este temporada disminuyeran hasta los 10 millones de cajas”.

“De la zona cordillerana de San Fernando, hacia el sur, queda bastante cereza por cosechar y ésta ha debido enfrentar, al menos, 50 milímetros de lluvia. Estimamos que en estas zonas, quedan por cosechar unas dos millones de cajas, de las cuales entre un 50% a 60%, podrían verse afectadas”, comentó Hernán Garcés, presidente de Agrícola Garcés.

FEDEFRUTA hizo un llamado a los productores a adoptar todas las medidas necesarias a fin de minimizar en lo posible las pérdidas ocasiones por las inclemencias del clima, especialmente, en los huertos frutales por la amenaza de ataques de hongos ocasionados por la alta temperatura y humedad que se espera se registren en los próximos días en las zonas de producción, al tiempo que el presidente de la entidad expresó su solidaridad con todos aquellos productores que están enfrentando este duro momento y ratificó su apoyo en todas las acciones que se pueden emprender en conjunto las autoridades, la industria frutícola y auxiliar para enfrentar de mejor manera este adverso momento.

“Las cerezas son el principal factor de preocupación. Han sido golpeadas por el clima repetidamente y son naturalmente susceptibles a la intemperie. Las lluvias han hecho que muchos productores hayan perdido 30-40% de su producción y creo que con las lluvias de esta semana podría acabar siendo el 50% de la producción total proyectada a comienzo de la temporada”, comentó Bill Lewis, representante en Chile de Crown Jewels.

En el caso de otras frutas, como los arándanos, Lewis indicó que no se espera un impacto mayor. “En el Valle Central no veo más que un retraso en la cosecha de la fruta por un par de días y la lluvia no tendrá un impacto significativo sobre la fruta”, dijo.

En un plano general Lewis indicó que están muy confiados con la temporada frutícola de Chile, debido a la gran demanda que hay por la fruta chilena. “El consumo de uva en EE.UU es increíble y hay mucho interés.

“Las uvas fluirán por los canales de marketing sin ningún problema, siempre y cuando no presenten problemas de condición”.

Precipitaciones ¿anormales?

Rodrigo Cazanga, encargado del área de producción agrícola y clima del CIREN, explicó a www.portalfruticola.com que el fenómeno climatológico que ha afectado las últimas semanas a la zona centro-sur de Chile se debe principalmente a la retirada del Fenómeno de La Niña, el cual estuvo presente por casi cuatro años y mantuvo los niveles de precipitaciones por debajo del promedio en un año normal.

“La llegada del Fenómeno de El Niño, que comenzó durante el invierno ha hecho que esta temporada hayan mayores precipitaciones que en los años anteriores, sin embargo, este aumento en las precipitaciones, que muchos lo ven como algo inusual, no lo es tanto, ya que aún con estas lluvias “inusuales”, seguimos estando bajo el promedio de un año normal”.

Cazanga nos explica que el equivalente al promedio de un año normal es la media de las precipitaciones de los últimos 30 años.

“Si uno entonces ve esas cifras por ejemplo en Curicó es normal que caigan lluvias del orden de 20 mm sólo en diciembre y en Temuco que las lluvias sean mayores en diciembre, con un promedio de 50 mm”.

“Esto que está ocurriendo es sólo un acercamiento a las condiciones normales que deberían darse en el país. Aún no alcanzamos el promedio de precipitaciones del año normal, por lo que no es algo inusual”, detalla.

Respecto a la agricultura, el experto comenta que esta situación no es la ideal para la época de cosecha de frutos como el arándano y las cerezas.

“Lo que está pasando en cuanto a clima, es que este va a ser un año que se aproxima a las condiciones normales, lo cual no es lo más óptimo del punto de vista de producción agrícola de frutales que se cosechan en esta época”.

“Para los agricultores las condiciones de clima seco en primavera seca eran muy convenientes para la cosecha y la calidad de la fruta, ya que al no haber humedad ni agua líquida sobre la superficie de los frutos, no había partidura ni desarrollo acelerado de hongos, pero esta era una condición climática anormal”.

“Lo que van a tener que hacer ahora es aumentar el número de aplicaciones de fungicidas y tratar de manejar de mejor forma los momentos propicios de cosecha”, dice, por ejemplo a través de una coordinación con los trabajadores.

De mantenerse estas condiciones climáticas, Cazanga dice que lo más probable es que la calidad de los frutales se vea afectada, por enfermedades o partiduras, especialmente en las cerezas.

Weekly Report of China Export Container Transport Market

CCFI Commentary in Issue 48, 2012

Rates Dived Widely since Weak Demand

As Christmas shopping spree starts in China and western markets, China exports box market has headed into slack season in overall.

Without volume support, utilization remained at a low level and rates on major trades continued to dive. On the Persian Gulf and Red Sea service, the rate surged significantly last week, but plunged this week.

On Dec.7, the China Containerized Freight Index (CCFI) issued by Shanghai Shipping Exchange (SSE) stood at 1106.28 points, down by 2.1% from last week; while the Shanghai Containerized Freight Index (SCFI) marked 1052.99 points, down by 2.8% from last week.

On the Europe trade, volume shrank during the slack season, leaving the average slot utilization rate of service from Shanghai to Europe just around 70% with weakening spot rates.

In contrast, at least one carrier engaging in Mediterranean service axed massive capacity this week, helping the utilization rebound to over 85%.

Nevertheless, oversupply is still out there and rates continued to decline this week, hitting as low as $600/TEU in some cases.

On Dec.7, the CCFI showed that the freight index of Europe and Mediterranean service marked at 1412.29 points and 1177.11 points, respectively down by 3.0% and 5.6% against last week.

To restore rates, many lines are planning to lift rates since from mid-Dec. with an increase of $500/TEU

The impact of the strike in USWC ports that lasted one week have eased, so volume are gradually picking up on the North America service.

In the past two week, the average slot utilization rate for the USWC service remained at around 80%.

On Dec.7, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of USWC stood at $2019/FEU, down by 1.3% from a week ago.

According to statistics, trading volume in LA-LB ports accounts for 40% of the total volume in U.S. Affected by the strike, ships in laden were unable to call terminals to discharge boxes, which resulted in economic losses estimated $1billion per day.

Volume on the USEC service was stronger than that on USWC service, with the average slot utilization rate hitting above 80%.

Rate decline slowed on the North America service, and carriers have to delay rate adjustment plan as the approach of rate increase in mid-Dec.

On Dec.7, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of USEC stood at $3071/FEU, almost unchanged from last week.

According to insiders, although the end of strike in USWC ports, workers in USEC ports are planning to strike at the end of this month.

On the Australia and New Zealand service, due to the low demand during the slack season and carriers’ reluctance to contract capacity, the average slot utilization rate of this service fell below 80% and rates declined at a quicker pace this week.

On Dec.7, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of Australia and New Zealand marked $954/TEU, down by 4.7% against a week ago. This compared to a decline of 3.3% last week.　The Australia and New Zealand component of CCFI also fell, down by 1.6% from last week to1072.73 points.

Carriers collectively lifted rates for boxes from Asia to Persian Gulf last week, despite the insufficient cargo. The achievement of last week’s rate increase was partly eroded with rate of utilization hovering around 60%.

On Dec.7, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports in this region plummeted by 13.2% to $749/TEU.

Volume on the South America trade shrank this week. Some carriers started to carry on winter capacity adjustment. As a result, the average slot utilization rate of ships leaving Shanghai for ports in South America rebounded back above 80% with falling spot rates.

On Dec.7, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of South America dropped by 1.9% to $2055/TEU. The South America component of the CCFI saw a 1.1% week-on-week decrease to 1097.28 points.

On the Japan trade, volumes out of Shanghai rose moderately this week, with the average slot utilization rate of ships from Shanghai to Japan standing above 75% with stable spot rates.

On Dec.7, the CCFI showed that the freight index of this service quoted at 790.90 points, almost unchanged from last week.

CCFI Commentary Issue 47, 2012

Weekly Report of China Export Container Transport Market Weak Demand Forced Carriers to Mull Year-End Rate Restoration China exports box market felt the chills of winter season this week. To maintain the utilization, carriers widely used low-rate strategy to canvass cargoes. However, such efforts can’t reverse the downside. Therefore, lines are mulling rate increases on many trade lines to gain the lost ground. The Persian Gulf and Red Sea service took the lead, where rates surged by over $200/TEU in average this week. On Nov. 30, the China Containerized Freight Index (CCFI) issued by Shanghai Shipping Exchange (SSE) stood at 1,129.90 points, down by 1.3% from last week; while the Shanghai Containerized Freight Index (SCFI) quoted at 1,082.82 points, almost unchanged from last week. Demand fell sheer on the Europe and Mediterranean service during the slack season. Moreover, the decline of demand well outpaced the contraction of capacity. The average slot utilization rate of ships leaving Shanghai for ports in North Europe struggled to maintain 70%. The utilization was even as low as 60% on the Mediterranean service. Carriers’ announcement of capacity cut this week failed to stop the rates from falling back to the level before increased ahead of November. On Nov. 30, the CCFI showed that the freight index of Europe and Mediterranean service marked at 1,456.03 points and 1,246.80 points, respectively down by 2.9% and 3.5% against last week. Considering the weak condition, some carriers postponed the rate increase plan by Mid-Dec. In the North America service, the labor union of office staffs in LA-LB ports organized strike on Nov.28 local time with the support of local stevedores, which disrupted most terminal operations in two ports. Many lines had to adjust the schedule temporarily. The average slot utilization rate of the USWC service quoted at below 80% this week and rates continued to drop. On Nov. 30, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of USWC stood at $2,046/FEU, down by 2.1% from a week ago. Liftings on the USEC service were also weak, where the average slot utilization rate hit around 80% and rates kept slip. On Nov. 30, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of USEC tumbled by 1.5% to $3,099/FEU. The Australia and New Zealand service is about to head into the slack season, where the average slot utilization rate reported at 90% below as demand declined. Rates went down this week again in a slower pace. On Nov. 30, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of Australia and New Zealand marked at $1,001/TEU, down by 3.3% against a week ago. On the Persian Gulf and Red Sea service, demand slid further as the social unrest in destination market. The average slot utilization rate decreased to around 60% this week. To restore rates, most carriers carried out the rate increase plan. As a result, the booking rates hiked over $200/TEU in average this week. On Nov. 30, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports in this region surged by 37.9% to $863/TEU. Exports of Christmas goods have almost finished on the China/South American trade. Individually, the average slot utilization rate of the SAWC service slid to about 90%. The SAEC service was relatively robust, with the utilization still staying 90% above. On Nov. 30, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of South America dropped by 1.5% to $2,094/TEU, 　　 Volume from Shanghai to Japan ports rose this week. Ships leaving Shanghai for Japan can be 70%-plus filled. Rates fluctuated slightly this week. On Nov. 30, the CCFI showed that the freight index of this service stood at 789.02 points, down by 1.4% comparing with last week.

CCFI Commentary in Issue 46, 2012

Weekly Report of China Export Container Transport Market SCFI dived during the slack season China exports box market witnessed another sluggish week. As the traditional slack season comes, carriers cut rates aggressively to maintain the utilization, which dragged rates down. On Nov. 23, the China Containerized Freight Index (CCFI) issued by Shanghai Shipping Exchange (SSE) stood at 1,144.98 points, down by 0.7% from last week; while the Shanghai Containerized Freight Index (SCFI) dived by 5.1% to 1,077.34 points. Despite active capacity cut by lines, such moves failed to bring a relief on the Europe trade. Demand was slack when winter came in the Northern Hemisphere. The average slot utilization rate just hovered at around 70% this week. Meanwhile, rates went down further, which have fallen by $400/TEU since the beginning of this month. On Nov. 23, the CCFI showed that the freight index of Europe service stood at 1,499.28 points, down by 1.3% from last week. On the Mediterranean market, demand growth was dented by the seasonal factor and weak economy in Southern Europe. To cope with the lack of volume during the winter, lines strengthened the management on capacity, for example, CKYH alliance announced that its members would suspend 7 Asia/Mediterranean sailings from Nov to mid-Jan next year. It collided with G6’s similar move to carry on slow steaming on 3 routes connecting Asia and North Europe /Mid East. CKYH’s cut moved about 21% of the total capacity the alliance deployed on the Mediterranean service, which helped the average slot utilization rate of this tradelane rebounded back to around 70%. On Nov. 23, the CCFI showed that the freight index of Mediterranean service marked at 1,292.30 points, down by3.4% from last week. On the North America service, demand was slack as the trade had head into slack season. The average slot utilization rate for the USWC service was less than 80% and rates continued to slide. On Nov. 23, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of USWC stood at $2,089/FEU, down by 6.1% from last week. It is said some lines started to launch slow steaming to absorb excess capacity. The USEC service fared better as lines took stricter discipline on capacity on this service. However, the average slot utilization rate still recorded a marginal decline this week, standing at around 85%. Rates also declined. On Nov. 23, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of USEC stood at $3,146/FEU, down by 3.1% from last week. TSA members decided to lift rates by $400/FEU from next month as they tried to laid a firm foundation for the upcoming annual contract negotiation. On the Australia and New Zealand service, demand was hit by seasonal factors and strike prevailing in New Zealand ports, where the average slot utilization rate fell below 90% and rates slumped this week. On Nov. 23, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of Australia and New Zealand stood at $1,035/TEU, 4.3% lower than last week. Political turbulences continued to affect the volume on the Persian Gulf and Red Sea service, where the average slot utilization rate declined to around 60% and rates sagged. On Nov. 23, the SCFI showed that the freight rate (covering seaborne surcharges) of service from Shanghai to base ports of this region dropped by 11.8% to $626/TEU, the lowest level in last 3 months. This compared to the decline of 3.5% last week. Lifting on the Japan service grew firmly this week. Ships leaving Shanghai for Japan can be 70%-plus filled. Rates remained stable. On Nov. 23, the CCFI showed that the freight index of this service stood at 776.42 points, almost unchanged from last week.