German shipping line Hamburg Sud has signed a preliminary deal to acquire the container activities of Chilean shipping line CCNI in a move that will create the world's twelfth largest carrier, according to Shipping Gazette.
No details of the transaction were released by the two shipping lines, according to UK's Lloyd's List.
The acquisition would enable Hamburg Sud to strengthen its liner network to and from South America by integrating the CCNI liner services. "Merging the dedicated and experienced workforce of CCNI and Hamburg Sud will help to create an even stronger organisation that will provide a first-class service to the customers of both companies," according to a statement issued last week.
The deal is subject to due diligence, execution of a sale and purchase agreement and approval by the relevant authorities. The acquisition is scheduled to be completed by December 31 of this year and also includes the general agency functions of CCNI.
According to Lloyd's List Intelligence, the amalgamation of the two carriers will create the world's twelfth largest shipping line with a fleet of 113 ships representing 508,610 TEU of capacity.
Currently, Hamburg Sud is ranked number thirteen in the world while CCNI is in 42nd position.
Lloyd's List Intelligence shows that both carriers have plans to expand their fleets. The German carrier has five vessels representing 36,600 TEU on order, while CCNI has three vessels with a total capacity of 27,000 TEU on its orderbook.
The acquisition follows hot on the heels of news of another German carrier's merger with a Chilean shipping line. Hapag-Lloyds and CSAV have merged to create the world's fourth-largest shipping line and will improve the new entity's presence on the north-south trades.
The Hamburg Sud and CCNI deal could be seen as a direct response to the Hapag-Lloyd CSAV merger. Last year, Hamburg Sud saw revenues decline by 3.9 per cent year on year in 2013 as overcapacity hit freight rates and it expects more of the same this year.
No details of the transaction were released by the two shipping lines, according to UK's Lloyd's List.
The acquisition would enable Hamburg Sud to strengthen its liner network to and from South America by integrating the CCNI liner services. "Merging the dedicated and experienced workforce of CCNI and Hamburg Sud will help to create an even stronger organisation that will provide a first-class service to the customers of both companies," according to a statement issued last week.
The deal is subject to due diligence, execution of a sale and purchase agreement and approval by the relevant authorities. The acquisition is scheduled to be completed by December 31 of this year and also includes the general agency functions of CCNI.
According to Lloyd's List Intelligence, the amalgamation of the two carriers will create the world's twelfth largest shipping line with a fleet of 113 ships representing 508,610 TEU of capacity.
Currently, Hamburg Sud is ranked number thirteen in the world while CCNI is in 42nd position.
Lloyd's List Intelligence shows that both carriers have plans to expand their fleets. The German carrier has five vessels representing 36,600 TEU on order, while CCNI has three vessels with a total capacity of 27,000 TEU on its orderbook.
The acquisition follows hot on the heels of news of another German carrier's merger with a Chilean shipping line. Hapag-Lloyds and CSAV have merged to create the world's fourth-largest shipping line and will improve the new entity's presence on the north-south trades.
The Hamburg Sud and CCNI deal could be seen as a direct response to the Hapag-Lloyd CSAV merger. Last year, Hamburg Sud saw revenues decline by 3.9 per cent year on year in 2013 as overcapacity hit freight rates and it expects more of the same this year.