German shipping company Hapag-Lloyd announced Monday a merger agreement with Dubai-based United Arab Shipping Company, in a deal it said strengthened the company's position among the world's five largest in the branch.
The new company will have 237 ships with a total transport capacity of 1.6 million standard units or TEUs and revenues of around 12 billion dollars.
The fleet would also include six Ultra Large Container Vessels - highly efficient ships with a capacity of 18,800 TEUs - and 11 with capacity of 15,000 TEUs.
Based in the northern German city of Hamburg, Hapag-Lloyd just last year completed a merger with Chilean shipping firm CSAV. Unlike the CSAV merger, the UASC deal centred not only around market access but increased fleets.
"This strategic merger makes a lot of sense for both carriers - as we are able to combine UASC's emerging global presence and young and highly efficient fleet with Hapag Lloyd's broad, diversified market coverage and strong customer base," said Hapag-Lloyd CEO Rolf Habben Jansen.
