«Consolidation between top carriers is unlikely»
London - The consolidation between top tier carriers such as French liner giant CMA CGM and its German counterpart Hapag-Lloyd is unlikely, according to Simon Heaney, Senior Manager for Container Research at Drewry
London - The consolidation between top tier carriers such as French liner giant CMA CGM and its German counterpart Hapag-Lloyd is unlikely, according to Simon Heaney, Senior Manager for Container Research at Drewry. As explained by Heaney, the merger of carriers of such size would probably be challenged by regulatory authorities amid fears of breaking fair competition rules: “We’ve all seen the news about CMA CGM and Hapag-Lloyd so I don’t discount the possibility, but I think M&A between the top tier carriers is unlikely, partly because of competition laws. The industry is still highly fragmented and from a carrier point of view in need of further consolidation, but I think it will come from lower down the pecking order,” Heaney said.
The reports on potential merger talks between the duo emerged earlier this month with Reuters writing that CMA CGM had made an exploratory approach to Hapag-Lloyd over a possible merger. However, a Hapag-Lloyd spokesperson said that “there is no substance on these market rumors.”
Be it as it may, carriers across the board have been eager to consolidate with their peers as a way of attaining cost efficiency in a market struggling with overcapacity headwinds.