Carriers invoke Force Majeure as ships begin to pile up off East and Gulf coasts
NewsContainer shipping companies, including CMA CGM, Ocean Network Express (ONE), and COSCO, are invoking force majeure due to the impacts of ongoing ILA strike.
Maersk to sell Mercosur Line
According to Banco Santander in Brazil, Maersk is to sell cabotage operator Mercosul Line to CMA CGM
The sale price is not known at this juncture. Mercosul Line has four vessels and recorded sales of Reais28M in 2016.
Mercosur Line has around 21% of the container transportation on the Brazilian coast and Aliança Navegação e Logística has 59%. As Aliança belongs to Hamburg Süd and Hamburg Süd is now part of Maersk, there was widespread concern over the de facto creation of a local market monopoly, and the Brazilian Council for Economic DefenCe (CADE) stepped in to demand a sale of Mercosul Line.
According to Rodolphe Saadé, President of CMA CGM, the acquisition of Mercosul Line would allow CMA CGM to strengthen its service offering to and South America, most notably in Brazil, "a market with a strong potential for development, especially on cabotage and door-to-door services. This activity is part of CMA CGM’s core strategy, which is to develop intra-regional sea transportation links and complementary services such as logistics."
The Mercosul transaction is subject to Brazilian regulatory approval and the closing of Maersk’s Hamburg Süd acquisition, which is expected in Q4 2017.
According to Portos e Navios, the change of ownership will impact on CMA CGM's arrangements with Log-In Logístca.
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