Hamburg Sud to buy FESCO’s cross-trade assets
German ocean carrier Hamburg Sud said today it has agreed to purchase the assets of Fesco Ocean Management Ltd., a subsidiary of Russia’s Far Eastern Shipping Co. (FESCO), relating to services between Australia/New Zealand and Asia as well as North America.
“The acquisition strengthens Hamburg Sud as a leading carrier in the north/south trades,” the carriers said in a joint statement.
Under terms of the acquisition Hamburg Sud will take over nine chartered vessels with nominal capacity ranging from 1,000 TEUs to 1,750 TEUs and three 2,750-TEU newbuildings due to be delivered in the second half of this year. Hamburg Sud will also take 15,000 containers from FESCO. Both parties declined to give financial details of the transaction or to discuss if any staff transfers will happen.
FESCO and Hamburg Sud currently operate vessel sharing agreements on the FNZEL and FAL services in the Asia/Australasia trade, as well as the PNW and PSW loops between North America and Australasia. Following completion of the deal, Hamburg Sud will market the services under the brand name Fesco Australia/New Zealand Liner Services.
FESCO’s services between the United States and the Russian Far East, the Russian Far East and ports in China, Japan, Korea and Vietnam, and services in the Russian cabotage trades are not part of the sale.
Following regulatory review, the transaction is expected to be completed in May.