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Carriers update South American network ahead of Hamburg Sud acquisition
MSC, Maersk Line, Hapag-Lloyd and CMA CGM are reorganizing their South America services in the months leading up to Maersk closing its acquisition of north-south specialist Hamburg Sud and finalizing the sale of its Brazilian cabotage subsidiary Mercosul.
Ocean carriers Hamburg Sud, Hapag-Lloyd and CMA CGM will be joining MSC and Maersk Line on a revamped East Coast South America network, just before Maersk Line expects to close on its acquisition of Hamburg Sud.
The five carriers collectively operate five major services between Europe and the Mediterranean and South America, with four of those loops set to undergo major changes.
Carriers involved will be swapping ports, vessels, and slot purchasers on the three services in order to satisfy enforced competition and service restructuring by trade officials.
The South America network changes are expected to be implemented by October on a rolling basis.
Maersk Line has been making moves in South America, first getting approved to acquire Hamburg Sud in April, and then announcing the sale of Brazilian cabotage subsidiary Mercosul, which holds 21 percent of the cabotage market, to CMA CGM in order to comply with competition standards in the region.
Maersk Line expects to close the $4.3 billion acquisition of Hamburg Sud by the end of 2017.
Publication date: 9/27/2017
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