Rumors Around the Market, as Hamburg Sud Remains Silent

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sud

The Story:

Hamburg Sud’s parent Oetker Group is exploring a potential sale of the container line – as per sources as revealed in the Wall Street Journal.  The rumors also claim that though the talks are on for sale, the decision is still pending which leaves the maritime industry to keep its fingers crossed.

What Happened:

Sources reveal that if the move is confirmed, the process to sell the world’s 7th largest box ship player could start before the end of the year.  Hamburg Sud is not commenting on market rumors that its parent Oetker Group is exploring a potential sale of the container line.

Gimme Some Background:

The maritime world in 2016 has witnessed “Four weddings and a Funeral”.  With consolidation supported more than ever before, decreasing container rates have been adding more pressure, above all, to owners left out of any big alliances, just like Hamburg Sud.

This is considered too small for an independent company to survive, under the currently tough market conditions, as the company hasn’t aligned with any of the three major alliances.  This could be considered a strategic approach that the Oetker family has been following during the last few years towards the container sector.

Nuts & Bolts:

  1. VesselsValue has marked the net worth of the whole fleet at around $1.4bn.
  2. Maersk, Hapag-Lloyd and CoscoCS touted as potential buyers of German line if Oetker Group decides for a sale.
  3. The owner operates 600,000 teu in total and is ranked sixteenth in terms of its own ships, marginally below companies such as Rickmers, Danaos and Zodiac.
  4. It has 3% of global capacity with a market share of 1.5% for its owned fleet.

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Source: The Wall Street Journal

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