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What we have been doing is working closely with our colleagues at COSCO Shipping Lines on a number of synergy areas such as network optimization, vessel deployment, joint procurement and equipment utilization by leveraging on the strengths and resources of both sides to improve our overall competitive positions in the market. Through the use of vessel slots from our sister company, OOCL will also be able to ofer services in emerging markets such as Latin/South America and Africa.

– OOCL’s Director of Trades, Mr. Stephen Ng “What we have been doing is working closely with our colleagues developments in Paris and Switzerland. In late September, “Big at COSCO Shipping Lines on a number of synergy areas such Blue” announced that two separate units, Maersk Line and logis- as network optimization, vessel deployment, joint procurement tics specialist Damco will be joining forces, at the beginning of and equipment utilization by leveraging on the strengths and re- 2019 (building on steps announced earlier in the Summer). The sources of both sides to improve our overall competitive posi- language of the offcial announcement oozes with the language tions in the market. Through the use of vessel slots from our sister of customer contact, rather than lowered costs, with Maersk CEO company, OOCL will also be able to offer services in emerging Soren Skou explaining that the two entities “…will be integrated markets such as Latin/South America and Africa.” The latter de- and their respective value-added services will be combined and scription mirrors the strategic dynamic of Maersk-Hamburg Süd. sold as Maersk products and services. This will ensure an im-

Nevertheless, Cosco has also made a move into ancillary busi- proved customer experience with fewer touchpoints and a more nesses. Late September reports indicated that Cosco was set to comprehensive service offering.” Parts of Damco’s freight for- acquire the container manufacturer (and container depot operator) warding activities, notably airfreight, will remain separate.

Singamas from its present owner, niche liner operator Philippine The optimization process has also benefted from the digitaliza-

International Lines (PIL). Shares of Singamas, with its operations tion wave sweeping all parts of the transport business, including exclusively in China, had been pledged to support a complicated liner shipping. Gordon Downes weighed in, saying, “The ques- refnancing undertaken by PIL earlier in mid 2017. The clock is tion I often hear is; ‘will consolidation give the remaining mega now ticking on the agreed timing for PIL to monetize its shares. carriers better control over their top line through greater pricing

Other aspects of privately owned PIL getting its fnancial house power?’ There will always be healthy competition among the in order have also been in the news. In mid October, the carrier main carriers, that’s the nature of our industry and the regulators sold fve vessels (in sizes ranging from 2800 to 4500 TEU) to the will of course always see to that.”

Chinese maritime lessor, Minsheng Leasing, with charters back. But analogously to a big carrier fne-tuning its network through geographical synergies, or a tie-in with a box manufacturer, the

Turning to ‘Turnkey’: Liners & Logistics ability of carriers to fne-tune the pricing of their service is an

CMA CGM has also been a fnancial newsmaker, as it seeks important complement to mergers or acquisitions bringing ancil- to acquire the “asset light” logistics specialist (and warehouse lary capabilities. Downes sums up that thought by saying, “I do operator) CEVA Logistics AG, based in Baar, Switzerland (but think consolidation affords the remaining carriers an opportunity operating around the world). In April, when the liner giant ac- to invest more in advanced pricing capabilities. This is far more quired 25% of the CEVA, Rodolphe Saadé, Chairman and CEO likely to be successful now as the industry is reaching maturity. of CMA CGM, stated: “CEVA is a major player in the logistics Most of the remaining carriers today have the underlying capa- business, which is closely related to the shipping industry. To- bilities to begin pricing dynamically based on actual market data, gether, the two companies will also explore possible cooperation rather than taking arbitrary rate action which we have typically allowing us to propose an ever more differentiated and qualita- seen from some of the less sophisticated carriers.” tive offering while integrating services beyond maritime trans- port.” At the end of October, CMA CGM- already the owner of

Barry Parker

The Author of bdp1 Consulting Ltd provides strategic and tactical 33% of CEVA shares, announced that it would be tendering for support, including analytics and communications, to busi- full control of the company.

nesses across the maritime spectrum. The company can be

As always, Maersk is in the center of industry trends; and found online at www.conconnect.com likely the management in Copenhagen was closely watching www.maritimelogisticsprofessional.com 31

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