Maersk Chief Operating Officer Jumps Ship, Lands In CEO Slot at MSC

The news a few days ago was vaguely mysterious, and delivered more questions than answers. Here's World Maritime News, November 12:

Maersk’s Søren Toft Leaves, Company Looking for New COO
 Danish shipping major A.P. Møller – Mærsk revealed a sudden departure of Chief Operating Officer, Søren Toft, as he decided to pursue an opportunity outside of the company.

Toft left his position effective November 11, Maersk said, adding that the responsibilities as Chief Operating Officer would in the interim be taken on by Søren Skou effective immediate.

The Executive Board will hereafter consist of Søren Skou, CEO and interim COO, Carolina Dybeck Happe, CFO, Vincent Clerc, CCO, and Morten Engelstoft, CEO of APM Terminals.

“I have worked with Søren for many years, and I appreciate Søren’s many contributions to A.P. Moller – Maersk. He leaves an agile and strong operating organization and we all wish Søren the very best in the future,” Søren Skou, CEO of A.P. Moller – Maersk, said....

...MORE

And today we read at gCaptain:

Report: Maersk’s Former Head of Operations Appointed CEO of MSC

Søren Toft, A.P. Møller – Mærsk’s former Chief Operating Officer whose abrupt resignation was announced earlier this week, is heading to Maersk rival and 2M alliance partner MSC Mediterranean Shipping Company where he will serve as its new CEO, according to media reports.

The news comes after Maersk made the surprise announcement on Monday that Toft had resigned with immediate effect from his role as COO of Maersk to pursue another opportunity.

Details of his departure, including where Toft was headed, had been kept under wraps. However, new reporting from Shipping Watch states that Toft has been appointed as the new CEO of MSC, the world’s second largest container shipping company behind Maersk. The change is expected to officially announced next week, the report says....MORE

I'm sure the extremely well off Aponte clan will make Mr. Toft feel welcome in Geneva.

And just to make things interesting, there's this tidbit from October:

Shipping: "Maersk Could Lose Biggest Carrier Crown"
From the Loadstar via gCaptain, October 17:

MSC is on course to overtake alliance partner Maersk as the biggest ocean carrier by capacity within the next two years.

A new order for five 23,000 teu ULCVs from the South Korean Daewoo yard will take the Geneva-based carrier’s orderbook to 16 vessels, for a massive 305,352 teu, according to Alphaliner data.....

Shipping: "Maersk Could Lose Biggest Carrier Crown"

From the Loadstar via gCaptain, October 17:

MSC is on course to overtake alliance partner Maersk as the biggest ocean carrier by capacity within the next two years.

A new order for five 23,000 teu ULCVs from the South Korean Daewoo yard will take the Geneva-based carrier’s orderbook to 16 vessels, for a massive 305,352 teu, according to Alphaliner data.

A disclosure from Daewoo this week valued the order at $152m per ship, with delivery of the five by August 2021.

This will propel MSC’s fleet, including current chartered tonnage, to just under 4m teu, a capacity level Maersk has said it wants to stick at.

During the second-quarter earnings call in August, Maersk chief executive Soren Skou confirmed this, adding: “We want to remain disciplined on capacity and stick to our guidance of around 4m teu of deployed capacity because it helps us drive utilisation up and unit costs down.”.......MORE

Maersk on Monday:
Shipping: Maersk Raises Full-Year Forecast

And MSC:
August 31
As The World's Largest Container Ship Completes Its Maiden Voyage from China to Europe, A Call For Even Bigger Behemoths

August 15
Shipping: "MSC Gulsun Departs Port of Tanjung Pelepas with Record-Breaking 19,574 TEUs"

March 7
Container Shipping: "MAN Hired for World’s First Megaship Conversion to LNG Fuel"
I am not familiar with this "Megaship" nomenclature. ULCS or ULCV but not the "Megaship.

Hong Kong's Orient Overseas Container Line is currently running the largest capacity container ships at 21,400 TEU with a couple of COSCO's ships also over 21,000 TEU.
CMA CGM's flagship, the Antoine de Saint Exupery clocks in with capacity of 20,950 TEU and Maersk has a fleet over 20,000 TEUs.
Those might be "Megaships". And the 23,350 TEU behemoths that MSC has on order definitely. would have to be...

January 15
Shipping: "MSC to Close Capacity Gap on Maersk in 2019"
September 2018
Shipping: "MSC Announces New Bunker Surcharge to Help Cover $2 Billion Per Year Low Sulphur Fuel Costs"
*The latest Lloyd's 100 Most Influential People in Shipping (Edition Eight, Dec. 2017) has the Aponte famiglia at #10, just behind the Saadé family (CMA CGM) now led by Rodolphe after his father's death this summer, at #9.

HA! "The Mediterranean Shipping Company (MSC) is now largest ocean carrier by operated vessel capacity"

I've been having a bit of a mini-drama regarding the accuracy of a statement from a December 21 post:

MSC just passed Maersk as the largest container shipping company by container capacity although Maersk is larger based on revenues and net income....

Yesterday The Loadstar stated Maersk was larger by 12,500 TEU's of capacity: 4,279,305 to 4,266,805 for MSC.

However, after reviewing the film, the Stewards Enquiry gives the nod to Climateer (more accurately, to our source). From Hellenic Shipping News, January 6, 2021:

Global ocean fleet statistics of Alphaliner show that the Mediterranean Shipping Company (MSC) is now the world’s largest ocean carrier by operated container vessel capacity.

Some 52 years after its foundation in 1970, MSC, the long-term number two, today on 5 January 2022 overtook Maersk Group of Denmark as the world’s biggest container line.

As of today, MSC deploys a fleet of 645 container ships with a total capacity of 4,284,728 teu. The company therewith holds a global market share of 17.0%.

Contrary to most other major ocean carriers, which reached their positions in the top-ten through series of mergers and acquisitions, MSC’s rise to the top was entirely organic.
In recent years, MSC has shown a strong growth, mainly through the phase-in of large newbuilt container vessels. Since 2020, the Swiss company has also grown significantly through the rapid acquisition of 128 secondhand container vessels: An unprecedented number in shipping history.

In the first quarter of 2022, MSC is expected to close its first carrier acquisition and buy a 67% majority stake in the Brazilian regional and domestic shipping and logistics firm Log-In Logistica. This will add a further ca. 15,000 teu of capacity to the fleet of MSC Group.
Starting out in 1970 with a German-built second-hand vessel of just 2,900 dwt, acquired from Hapag-Lloyd and renamed PATRICIA, MSC flourished and over the years developed into a massive group....

....MUCH MORE

For folks with an interest in the industry the above story also links to Alphaliner TOP 100 / 06 Jan 2022 with CMA CGM; COSCO; and Hapag-Lloyd rounding out the top five and everyone else down to Irish Continental Group at #100 with 5502 TEU capacity on 6 ships.

Shipping: "Vessel-hungry MSC set to take Maersk's crown as world's largest box line"

From The LoadStar, April 14:

Based on box ship orderbooks and its aggressive purchasing in the second-hand market, MSC is set to usurp 2M partner Maersk next year to become the world’s largest container line.

According to Alphaliner data, the capacity gap between the two carriers currently stands at around 225,000 teu, with the Danish carrier operating a fleet of 709 ships for 4,121,964 teu, while MSC’s 588-ship fleet has a capacity of 3,897,002 teu.

However, the consultant said, MSC’s two-pronged owned fleet growth strategy of hoovering up second-hand tonnage alongside its large orderbook will see Maersk become the junior partner in the 2M alliance “sometime in 2022”.

“MSC is behind orders for at least 35 big deepsea vessels, with a combined capacity of nearly 660,000 teu, while Maersk’s current orderbook only includes 16 ‘regional’ ships, for 41,674 teu,” said Alphaliner....

....MUCH MORE

Previously:
January 2019
Shipping: "MSC to Close Capacity Gap on Maersk in 2019"

Dec. 2018
"MSC" is the abbreviation, not a stock symbol. The company Is privately owned with the controlling shareholders, the Aponte clan, being worth at least $8 billion and probably over $10 B.

And Sept. 2018
Shipping: "MSC Announces New Bunker Surcharge to Help Cover $2 Billion Per Year Low Sulphur Fuel Costs"
MSC Mediterranean Shipping Company S.A is another of the world's largest shippers who sound as though they are about to establish a GoFundMe page.
That's a joke.
The Aponte clan* is doin' alright.

***

*The latest Lloyd's 100 Most Influential People in Shipping (Edition Eight, Dec. 2017) has the Aponte famiglia at #10, just behind the Saadé family (CMA CGM) now led by Rodolphe after his father's death this summer, at #9.

Shipping: MSC Joins CMA CGM In Pledge To Avoid Northern Sea Route While Russia Offers to Pay Shippers to Use the NSR

Following on yesterday's link re: MSC being on track to overtake Maersk as the world's largest container line, a couple related stories. Both at gCaptain:

October 17
MSC Rules Out Using the Northern Sea Route

MSC Mediterranean Shipping Company is joining a growing list of carriers that have pledged not to use the Northern Sea Route for shipping between Europe and Asia.

MSC said in a statement Thursday that its decision is based on environmental concerns, adding that it will instead focus on improving environmental performance on existing global trade routes.

“As a responsible company with a longstanding nautical heritage and passion for the sea, MSC finds the disappearance of Arctic ice to be profoundly disturbing. Every drop in the oceans is precious and our industry should focus its efforts on limiting environmental emissions and protecting the marine environment across existing trade routes,” said Diego Aponte, President & CEO, MSC Group....MORE

And a deep dive from Bloomberg via gCaptain October 21:

Russia Willing to Pay to Lure Shippers to the Arctic

Russia wants to make its Arctic waters more attractive to shippers than the Suez Canal and could be willing to compensate for potential risks to make that happen.

President Vladimir Putin has made development of the Arctic one of Russia’s top long-term priorities and huge projects to export liquefied natural gas via the Northern Sea Route have already lured investors above the Polar Circle. But shippers of other products remain reluctant to make the detour from the Suez Canal toward the Arctic due to multiple risks.

To deliver a cargo via the Northern Sea Route today, a shipping company needs an ice-class vessel or an icebreaker and to pay insurance costs more than twice those for the Suez Canal, according to Russia’s Deputy Minister of the Far East and Arctic Development Alexander Krutikov.

His ministry, together with Russian think-tank Skolkovo, is working on a project to create a state-run container ship operator. The company would cover the cost of any risks associated with transporting international cargoes via the Arctic’s icy waters, including possible delivery disruptions and higher insurance payments.

“The state pays for the Arctic exposure and the shippers cover the remaining costs themselves,” Krutikov said in an interview. The resulting costs for shipping companies “should be lower than in the Suez Canal, at least at the first stage,” to promote the route.

If the idea is implemented, the state container ship operator would be responsible for transporting cargoes across the Northern Sea Route, stretching more than 3,000 nautical miles between the Barents Sea at the Russian border with Norway and the Bering Strait near Alaska.

Feeder ships from European and Asian ports could sail as far as Murmansk in the Barents Sea and Kamchatka in the Far East, bringing cargoes to transshipment points, according to Krutikov. From there, the Russian container operator would take responsibility for the cargoes, he said. “This significantly lowers transportation costs, as foreign companies will not need Arctic vessels,” and Russia could also keep transshipment costs competitive, Krutikov added....

....MUCH MORE

Related:
August 24 
"Macron Asks Shippers to Shun Arctic Route to Protect Environment" CMA CGM Says 'Oui'
May 2019
It's The Middle Of May, So Why Is This Arctic Class LNG Tanker Using The Suez Canal Instead Of The Northern Sea Route?
September 2019
Shipping: Egypt (Suez Canal) Is A Bit Nervous About Russia's Northern Sea Route

 World Maritime News

Following on this morning's post, "Shipping: Venta Maersk Successfully Transits Russia's Northern Sea Route Becoming The First Container Ship To Do So", here's a story we've been waiting to link, from Egypt Today:

CAIRO – 29 August 2018: Although Maersk will be sending its Venta Maersk vessel to collect data from the Arctic sea route in the next few days, research has shown that the Suez Canal Route is more cost effective and will remain unaffected....

And another on Maersk and the NSR:
Shipping: "Venta Maersk Completes Northern Sea Route Trial Passage"

Shipping: Two Approaches To NextGen Power: Maersk Goes With Batteries In a Box; Chantiers de l'Atlantique and MSC Cruises Trial LNG Fuel Cells

Two stories via gCaptain. First pp:

MSC Cruises, Chantiers de l’Atlantique to Develop LNG-Powered Fuel Cells

MSC Cruises and Chantiers de l’Atlantique have unveiled a potentially groundbreaking project to develop an LNG-operated fuel cell on board a cruise ship that could help reduce greenhouse gas emissions from LNG-powered ships even further.

The technology, known as a Solid Oxide Fuel Cell, would be a world first for the cruise sector. The fuel cell, which will run on LNG, operates at a higher temperature (around 750 degrees C) and is more efficient for high-power applications.

According to MSC Cruises, the SOFC technology could offer electrical efficiency by up to 60 percent as the heat produced can be self-consumed on board. This helps reduce GHG emissions by about 30 percent compared with a conventional LNG engine, with no emission of nitrogen oxides, sulfur oxides or fine particles. The technology also comes with the advantage of being compatible with other fuel types, such as methane, methanol, ammonia, and hydrogen, among others, MSC Cruises says.....

....MORE

Chantiers de l’Atlantique is one of the big dogs of the shipbuilding world.
And speaking of big, the Saint-Nazaire yard built four of these suckers, second only to the 657,019 DWT Happy Giant as the largest ultra-super-mega tankers. Batillus was the lead ship of the class:
 

Batillus class tanker, 555,000 DWT.

We've mentioned it a few times.

And back to today's headlines:

Maersk to Trial Containerized Battery on Containership

The containerized battery energy storage system has been manufactured in 

Odense, Denmark by Trident Maritime Systems. Photo courtesy Maersk

A.P.Moller- Maersk is getting ready to test a containerized battery on board one of its containerships as the world’s largest container shipping company continues to develop low carbon solutions in order to meet its environmental goals.

The 600 kWh battery, which is housed inside a shipping container, will be installed on board the 249-meter MV Maersk Cape Town next month.

“This trial will provide a greater understanding of energy storage that will support Maersk in moving towards further electrification of its fleet and port terminals. Maersk will continue to facilitate, test, and develop low-carbon solutions on our journey to become carbon neutral by 2050,” explains Søren Toft, Maersk COO....

....MORE 

Shipping: "MSC to Close Capacity Gap on Maersk in 2019"

Via gCaptain:

By Mike Wackett (The Loadstar) – MSC is set to receive some 330,000 teu of newbuild tonnage this year and will close the gap on its 2M partner, Maersk Line, in the capacity rankings.

According to new analysis by Alphaliner, MSC has the largest newbuild pipeline of all ocean carriers this year, with 20 vessels expected, for an aggregated total capacity of 334,550 teu.

It said the privately-owned carrier was also expected to launch a “ship-jumboisation” programme this year that will see a series of 14,000 teu vessels converted to raise their nominal capacity to over 17,000 teu.

Meanwhile, stock market-listed Maersk Line is being obliged to adopt a much more cautious approach to its orderbook, with a view to not spooking investors concerned about the possibility of a global slowdown.

The Danish carrier only has six ships due for delivery, for a modest 73,600 teu of capacity, noted Alphaliner.

Indeed, without Maersk’s acquisition of Hamburg Süd and its fleet of around 650,000 teu, MSC would have been almost neck-and-neck with its top-ranked rival at the end of this year, with around 3.6m capacity.

MSC’s delivery pipeline this year includes eight 23,000 ULCVs for delivery in the second half. Alphaliner said it expected some of these to be deployed on the extended rotations of the 2M’s six Asia-Europe strings, while others were expected to cover for vessels taken out of service for around six weeks in the second half for the retrofitting of scrubber systems, ahead of IMO 2020.

The carriers with the next largest 2019 capacity expansion plans are Ocean Alliance partners Cosco and Evergreen, with newbuild pipelines of 181,000 teu and 134,000 teu, respectively.
“Cosco will continue its relentless growth in 2019, fresh from last year’s acquisition of OOCL,” said Alphaliner.

With this capacity injection, the Chinese state-owned carrier will widen the gap on the remaining alliance partner, CMA CGM, currently in fourth place in the rankings....MORE

 Our last two posts on MSC noted the company had resources to draw upon should the need arise:
Dec.4 
"MSC" is the abbreviation, not a stock symbol. The company Is privately owned with the controlling shareholders, the Aponte clan, being worth at least $8 billion and probably over $10 B.

And Sept. 25
Shipping: "MSC Announces New Bunker Surcharge to Help Cover $2 Billion Per Year Low Sulphur Fuel Costs"
MSC Mediterranean Shipping Company S.A is another of the world's largest shippers who sound as though they are about to establish a GoFundMe page.
That's a joke.
The Aponte clan* is doin' alright.

***

*The latest Lloyd's 100 Most Influential People in Shipping (Edition Eight, Dec. 2017) has the Aponte famiglia at #10, just behind the Saadé family (CMA CGM) now led by Rodolphe after his father's death this summer, at #9.

If interested here's an ungated version of Edition Seven of the 100 Most Influential, for folks who don't subscribe via Maritime Cyprus.It's a year out of date but good background or a dandy prospect list.
The subscription makes a fine gift.

Shipping: "MSC Announces New Bunker Surcharge to Help Cover $2 Billion Per Year Low Sulphur Fuel Costs"

MSC Mediterranean Shipping Company S.A is another of the world's largest shippers who sound as though they are about to establish a GoFundMe page.
That's a joke.
The Aponte clan* is doin' alright.

From gCaptain:

Mediterranean Shipping Company (MSC) has joined its rivals Maersk Line and CMA CGM in announcing a new bunker fuel surcharge to be imposed on its customers to help recover additional costs associated with the 2020 global sulphur cap.

Starting January 1, 2020, new International Maritime Organization rules will require ships to use bunker fuel with a maximum sulphur content of 0.5%, compared with the current standard of 3.5%, unless they are equipped with so-called scrubbers to clean up sulphur emissions. 

In order to prepare for the new rules, MSC announced Monday it will be introducing a new Global Fuel Surcharge as of  January 1, 2019, in order to help customers plan for the impact.

MSC said it expects operating costs to rise in excess of $2 billion dollars per year as a result of the new rules.

“The new MSC Global Fuel Surcharge will replace existing bunker surcharge mechanisms and will reflect a combination of fuel prices at bunkering ports around the world and specific line costs such as transit times, fuel efficiency and other trade-related factors,” MSC said in a press release.

MSC’s announcement follows similar moves by Maersk Line and CMA CGM....MORE

*The latest Lloyd's 100 Most Influential People in Shipping (Edition Eight, Dec. 2017) has the Aponte famiglia at #10, just behind the Saadé family (CMA CGM) now led by Rodolphe after his father's death this summer, at #9.

If interested here's an ungated version of Edition Seven of the 100 Most Influential, for folks who don't subscribe via Maritime Cyprus.It's a year out of date but good background or a dandy prospect list.
The subscription makes a fine gift.

One more note, the gCaptain story links to their coverage of Maersk's and CMA CGM's estimates of the extra multi-billion dollar costs but didn't link to a couple other really big lines:

Shipping: "Hapag-Lloyd Expects USD 1 Bn in Extra Fuel Costs from 2020 Sulphur Cap"

Shipping: CEO of Third Largest Fleet Says "We're All Going to Go Bust".

Shipping: MSC May Not Be The Largest Container Line...Yet

Hold all tickets, we have a Stewards Enquiry.

On December 21 we posted "Logistics/Shipping: "Shipping giant MSC offers to buy Africa unit of Bolloré Logistics"
MSC just passed Maersk as the largest container shipping company by container capacity although Maersk is larger based on revenues and net income....

So, as the stewards watch the video and I check my usually accurate source, we read this, from The Loadstar, January 5:  

MSC the major 'winner' in 2021's containership capacity race

MSC added 411,000 teu of capacity last year, mostly via second-hand containership purchases, for a growth of 10.7%, to 4,266,805 teu, according to Alphaliner data.

This compares with 2M partner Maersk’s conservative 3.4% capacity growth of 142,405 teu, to 4,279,305 teu, and other carrier rivals’ flat or negative tonnage growth in 2021.

MSC’s tonnage growth was especially impressive given that several of its acquisitions involved ships it already operated on charter.

The consultant’s analysis of the ‘winners and losers’ in the capacity race last year highlighted Geneva-headquartered MSC’s insatiable appetite for the S&P market, notching up more than 100 reported purchases.

S&P brokers told The Loadstar last year MSC was hunting ships of “any size and any age” and prepared to outbid all other carriers for an available vessel, even if the transaction involved the expiry of a current charter of six months or more.

However, percentage-wise, Taiwan’s Wan Hai grew its fleet the most: by nearly a third, to 421,202 teu, thereby powering its way into the carrier top 10 rankings and demoting Zim to 11^th, despite the Israeli line boosting its fleet by almost 15%, to 413,862 teu, with new charters and its first purchases of second-hand ships.

Elsewhere, Wan Hai’s compatriot, Evergreen, added 199,254 teu of tonnage representing a 15.6% increase in capacity, to 1,477,644 teu.

Nevertheless, Evergreen was not an active player on the S&P market....

....MUCH MORE

Logistics/Shipping: "Shipping giant MSC offers to buy Africa unit of Bolloré Logistics"

MSC just passed Maersk as the largest container shipping company by container capacity although Maersk is larger based on revenues and net income. However, MSC is private and Forbes says the Aponte fam is the wealthiest in Switzerland at $10.3 billion. That is very lowball as the company is turning $28 -30 billion in revenues. Throw even a 1 multiple on that and, well it's not higher level math is it.

From FreightWaves. December 20:

$6.7B deal highlights diversification strategy of ocean carriers

Mediterranean Shipping Co., the world’s second-largest ocean container line, has made an offer to acquire the Africa division of Bolloré Group, the France-based third-party logistics provider announced Monday. 

The move is part of a recent trend that has seen ocean carriers and terminal operators become more vertically integrated freight transportation and logistics providers to diversify their revenue streams and offer customers holistic supply chain solutions based on variable needs. Supply chain disruptions during the pandemic have heightened cargo owners’ interest in having alternative freight transportation strategies and capabilities.

The MSC Group, based in Switzerland, is offering to buy 100% of Bolloré Africa Logistics at an enterprise value of 5.7 billion euros ($6.7 billion), not including any minority interests in the company.

The Bolloré Group said it has granted MSC Group exclusive rights until March 31, 2022, to conduct negotiations and comprehensive appraisal of the business. 

Any final agreement is contingent on consultation with labor unions and reorganization of certain internal Bolloré operations. Completion of the sale would require approval by relevant regulatory bodies as well as certain counterparties of Bolloré Africa Logistics.

Bolloré is ranked as the 21st largest logistics provider in the world, based on gross revenue of $5.3 billion in 2020, according to consultancy Armstrong & Associates....

....MUCH MORE

FreightWaves is still using the old rankings for MSC. They really have bumped Maersk from the #1 position Maersk held for 25 years. 

"China Threatens to Block Panama Ports Deal Unless Its Shipping Giant Is Part of It"

From the Wall Street Journal, July 17:

Beijing pushes for state-owned Cosco to become shareholder of two Panama Canal ports, dozens of others in BlackRock deal 

China’s government is threatening to block a deal that would transfer ownership of dozens of seaports to Western investors if Cosco, China’s largest shipping company, doesn’t get a stake.

The proposed sale includes two ports at the Panama Canal and more than 40 others around the world, all owned by Hong Kong-based CK Hutchison.

China is pushing for state-owned Cosco to be an equal partner and shareholder of the ports with BlackRock, and Mediterranean Shipping Co., a containership operator, according to people familiar with the deal talks. BlackRock and MSC in March reached a preliminary agreement to buy the ports in a deal valued at nearly $23 billion.

Now, BlackRock, MSC and Hutchison all are open to Cosco’s taking a stake, the people familiar with the talks said.

The parties aren’t likely to reach a deal before a previously agreed upon July 27 end date for exclusive talks between BlackRock, MSC and Hutchison, the people familiar with the talks said. The parties can’t strike a deal that includes Cosco until the exclusivity period ends.

Any deal giving a stake in the Panama ports to a Chinese-owned company would likely upset President Trump, who has threatened to take control of the canal and has objected to Hutchison’s ownership of two ports there. The White House didn’t respond to a request for comment Thursday.

After this article was published online Thursday, Rep. John Moolenaar (R., Mich.), who chairs a congressional committee on China, made public a letter he had sent to a top Panamanian official, saying that the inclusion of Cosco or any other Chinese company in port operations at the canal “would represent an unacceptable risk to the national security of both our nations.”

Hutchison’s initial plan to sell the ports angered Beijing, according to people familiar with the talks. Chinese authorities have told Chinese state-owned companies to freeze any coming deals with Hutchison or other businesses linked to its controlling shareholder, the family of the Hong Kong billionaire Li Ka-shing, these people said....

....MUCH MORE 

Recently:

MSC's Aponte Eclipses BlackRock in Li Ka-shing’s Port Deal 

One quibble. We know some stuff about the shipping companies.

MSC is not just "a containership operator." It is the world's largest, having passed Maersk's capacity in 2022. That achievement was in all the papers and better blogs (ahem).

MSC has the largest container fleet and an over 1mm TEU larger capacity. It is also a giant in logistics and other businesses involved in moving stuff around the world. 

Because MSC is privately held they don't splash their numbers - so to speak - but revenue was almost €90 billion in '22 and Italian media reported the holding company booked quite a profit in what was a very good year for the entire industry. From TradeWindsNews, 

Published 12 October 2023, 03:45

Gianluigi Aponte’s MSC Group has — perhaps inadvertently — revealed its financial performance for the first time.

The holding company of the world’s largest liner company reportedly made €36.2bn ($38.4bn) in profits last year.

The number has been widely published by Italian media outlets after MSC announced the purchase of around half of high-speed Italian train operator Italo.

Turnover of the MSC Group was €86.4bn in 2022, according to Il Messaggero, which first reported the accounts.

Ebitda was €43.2bn and Ebit was €35.7bn.

The Geneva-based company possessed cash reserves amounted to €63bn and equity of €91bn. Medium to long-term debt is put at €26bn.

The figures reflect a big increase in profitability during the pandemic....

....MUCH MORE 

As noted in a 2019 post:

Sept. 25
Shipping: "MSC Announces New Bunker Surcharge to Help Cover $2 Billion Per Year Low Sulphur Fuel Costs"
MSC Mediterranean Shipping Company S.A is another of the world's largest shippers who sound as though they are about to establish a GoFundMe page.
That's a joke.
The Aponte clan* is doin' alright.

***

*The latest Lloyd's 100 Most Influential People in Shipping (Edition Eight, Dec. 2017) has the Aponte famiglia at #10, just behind the Saadé family (CMA CGM) now led by Rodolphe after his father's death this summer, at #9.

If interested here's an ungated version of Edition Seven of the 100 Most Influential, for folks who don't subscribe via Maritime Cyprus.It's a year out of date but good background or a dandy prospect list.
The subscription makes a fine gift.

Shipping: Maersk Strategy For World Domination Diverges Sharply From MSC and CMA CGM

From Hellenic Shipping News, January 10: 

Top 10 container lines: How did rankings change during boom?

Container shipping lines reaped massive windfalls during the COVID-era consumer boom. Different ocean carriers pursued different fleet strategies in 2020-22, from aggressively maximizing market exposure on one hand to keeping capacity flat or even reducing it on the other.

The liner bonanza isn’t over yet — high contract rates should keep outsized profits flowing well into this year. But with the historic super-cycle winding down, it’s time to take stock of how fleets evolved over the past three years.

Alphaliner released its overview of 2022 fleet changes on Tuesday. Together with Alphaliner’s historical records, the data shows that the aggregate market share of the top 10 lines has stayed steady through the super-cycle — now at 85% of the global fleet versus 84% in early 2020 — but with big changes among individual players.

There are “major discrepancies between the ‘gainers’ and ‘losers,’” said Alphaliner.

The big gainers

Between Jan. 1, 2020, and Jan. 1, 2023, Alphaliner data shows the top 10 liners increased aggregate capacity by 2.6 million twenty-foot equivalent units or 13%. Five companies drove the gains.

MSC: Switzerland’s Mediterranean Shipping Co (MSC) — the world’s largest carrier since surpassing Maersk last January — has been the biggest gainer in terms of absolute capacity. Its capacity is up 832,324 TEUs or 22% over the three-year period.

According to Alphaliner, MSC increased capacity by 7.5% in 2022, primarily through second-hand acquisitions. It boosted capacity by 10.7% in 2021 through a combination of second-hand acquisitions, charters and newbuild deliveries.

CMA CGM: France’s CMA CGM is now the world’s third-largest liner operator, up from fourth place pre-pandemic.

CMA CGM grew the second fastest in terms of TEUs after MSC. It hiked capacity by 697,327 TEUs or 26% over the past three years. A portion of that growth was fortuitous timing, courtesy of newbuilds delivered in 2020-21 that were ordered before the boom. Capacity rose 7.1% last year....

....MUCH MORE

Economy/Shipping: "Maersk Warns Trade Tensions are Hurting Shipping’s Growth"

Two via gCaptain. First up, Reuters May 24:

A.P. Moller-Maersk , the world’s largest container shipping company, warned on Friday that trade tensions and an economic slowdown are slowing growth in global freight.

Maersk, which is seen as an indicator of global trade patterns, cut its forecast for global growth in container traffic this year due to the trade dispute between the United States and China.
“The recent escalation of the trade war induced by an increase in tariff rates and threats of implementing additional tariffs could take global container trade growth to the lower end of the 1-3% interval (range),” CEO Chief Executive Soren Skou said, referring to a forecast range it had given three months ago.

During his three years as CEO, Skou has sold off the Danish group’s oil and gas business to focus on the container business, a strategy some analysts say has left Maersk exposed during economic downturns.

The strategy was initially welcomed by investors, but Maersk’s share price has fallen 42% since a peak in July 2017 and is now virtually trading where it was when Skou took on the job in June 2016.

On Friday the group reported first-quarter results in line with expectations as a decline in container volumes was balanced by higher freight rates.
The trade war depressed trade volumes between Asia and North America in the first three months of the year, it said.

New tariffs could reduce the expected growth in global container volumes by up to 1 percentage point, Skou told a press conference in Copenhagen after returning from a trip to China.
“We hosted 50 Chinese customers for dinner in Shanghai yesterday and I can assure you that they all wanted the trade war to end soon,” Skou said....

....MORE

And The Loadstar, May 24:

Carriers Blank More Sailings as Transpacific Box Rates Continue to Slide

A blanked sailing from the 2M+HMM grouping on the transpacific this week failed to halt the further erosion of freight rates to both the Asia-US west coast and Asia-US east coast destinations.

The departure of the 8,500 teu Hyundai Faith, scheduled for this week, was cancelled “to rationalise capacity supply from Asia to the US west coast”, according to vessel-sharing agreement partner MSC.
The blanking was on the MSC Yulan service connecting Shanghai, Gwangyang and Busan with Los Angeles.

However, the capacity cut failed to push up rates, which this week saw further declines on the transpacific, according to multiple indices.

The Shanghai Containerised Freight Index (SCFI) recorded a 3.4% on the Shanghai-US west coast leg to $1,294 per 40ft, while the Shanghai-US east coast leg saw rates drop 2.2% to $2,450 per 40ft.

The Freightos Baltic Index broadly concurred with the SCFI assessment. Yesterday, it put the China-US west coast rate at $1,315 per 40ft, and noted that rates had jumped 24% at the beginning of April following a general rate increase (GRI) to $1,555 per 40ft, but “they’ve been dropping ever since”, it reported.....

....MORE

Maersk Goes Big On Warehouses: Buy's Li & Fung's Logistics Unit For $3.6B

A deep dive from SupplyChainDive, December 22:

The deal will grow Maersk's global warehouse footprint to more than 100 million square feet.

A.P. Moller - Maersk made one of its biggest deals to date on Wednesday with a $3.6 billion purchase of Li & Fung's Asia-Pacific logistics subsidiary, LF Logistics.

The all-cash deal comes with its usual bells and whistles. Maersk will purchase a 100% stake in LF Logistics, taking control of the Hong Kong-based company's in-country logistics and global freight management business units. The deal is expected to close in 2022, pending regulatory approvals.

But it also comes with a twist: After the deal closes, Li & Fung plans to acquire the global freight management unit back, in order to retain and grow it on its own terms.

Both Maersk and Li & Fung aim to be leaders in the end-to-end supply chain management space. But they have different capabilities, a fact which the two companies leaned into to make a deal work. In addition to the acquisition of LF Logistics, the two companies signed a "long-term strategic partnership" to work together on supply chain services for customers.

"With Li & Fung’s upstream digital and sourcing expertise and Maersk’s downstream logistics capabilities, we will begin to offer our respective customers the opportunity to take advantage of this unique end-to-end value chain proposition anchored upon operations excellence, technology, and sustainability," Spencer Fung, group executive chairman of Li & Fung, said in a statement.

For Li & Fung, it was more of a cash-rich divestment. The deal allows the company to shed logistics assets to grow its freight management and supply chain finance portfolio.

But for Maersk, documents disclosed to investors show it's a growth milestone that caps a year of acquisitions....

....MUCH MORE

Recently:
Big Money Still Buying Warehouse Assets: Canada Pension Plan Investment Board Enters Into $1.1 Billion J.V.
Logistics/Shipping: "Shipping giant MSC offers to buy Africa unit of Bolloré Logistics"

Shipping: Mediterranean Shipping Co. Expects A $2 Billion Annual Rise In Fuel Costs From 2020 Low Sulpher Rules (MSC)

"MSC" is the abbreviation, not a stock symbol. The company Is privately owned with the controlling shareholders, the Aponte clan, being worth at least $8 billion and probably over $10 B.

From gCaptain:
MSC Facing Over $2 Billion Bump in Annual Fuel Bill from IMO 2020

Swiss-headquartered MSC expects to pay over $2 billion a year in fuel costs due to tougher global marine fuel rules and will introduce a bunker charge next year to recoup expenses, the world’s number two container line said.

UN agency the International Maritime Organization (IMO) will prohibit ships from using fuels with sulphur content above 0.5 percent from Jan. 1, 2020, compared with 3.5 percent today, unless they are equipped with exhaust gas cleaning systems, known as scrubbers, to clean up sulphur emissions.

For shipping companies struggling from years of weaker earnings, the new regulations are expected to mean more cost pressure.

“MSC has estimated that the cost of the various changes we are making to our fleet and its fuel supply is in excess of two billion dollars (USD) per year. We have already had to start incurring these costs to be ready for 2020,” the group said in a Dec. 1 note.

MSC said it would levy a bunker recovery charge from Jan. 1, 2019 “as a result of the regulatory changes we all support”...

...MORE

Related: 
Big Oil Traders Set to Cash In On Low Sulphur Shipping Fuel Change

Oil: The Impact On Refiners Of Shipping's Low-Sulpher Fuel Ruels After 2010

"Maersk Braces For A $5+ Billion Fuel Bill In 2020"

Top Norwegian Oil Analyst Quitting DNB to Pursue 2020 Low Sulphur Fuel Rule Riches

Shipping: The New Low Sulpher Rules Will Have A Huge Impact On the Oil Business (shipping and world economy too)

Rich Rewards Await Top Oil Refiners as Ships Make Low Sulpher Switch Fuel

Shipping: "Hapag-Lloyd Expects USD 1 Bn in Extra Fuel Costs from 2020 Sulphur Cap"

Shipping: CEO of Third Largest Fleet Says "We're All Going to Go Bust"

Shipping: "CMA CGM Says Global Sulphur Cap to Cost Customers $160 Per Container on Average"
That's serious money, say on a 10,000 TEU average voyage, $1.6 million per trip?
Jeez, no wonder the industry is freaking out....

French Shipyard Chantiers de l’Atlantique Nabs a Big Order

From LNG World News:

Chantiers de l’Atlantique bags MSC Cruises LNG pair
MSC Cruises and Chantiers de l’Atlantique have signed firm contracts for the construction of third and fourth LNG-powered MSC World Class ships.  

The vessels are scheduled for delivery in 2025 and 2027,  Chantiers de l’Atlantique said in its statement.

The first of the initial two ships in the class is currently under construction at Chantiers’ shipyard in Saint-Nazaire and is due to enter service in 2022. With 205,000 GT, she will become the biggest vessel operated by a European cruise line as well as the first LNG-powered cruise ship built in France.

These contracts represent a capital investment by MSC Cruises exceeding €2 billion ($2.2 billion).
The two companies have also extended their partnership over the next decade with two additional newbuild projects....MORE

Previously:
November 2019
Shipping: Two Approaches To NextGen Power: Maersk Goes With Batteries In a Box; 
Chantiers de l'Atlantique and MSC Cruises Trial LNG Fuel Cells 

...And speaking of big, the Saint-Nazaire yard built four of these suckers, second only to the 657,019 DWT Happy Giant as the largest ultra-super-mega tankers. Batillus was the lead ship of the class:

Batillus class tanker, 555,000 DWT.

We've mentioned it a few times.

French Shipyard, Chantiers de l’Atlantique, Delivers The World's Largest Cruise Ship To Royal Caribbean

From gCaptain, January 28:

Royal Caribbean has taken delivery of the Wonder of the Seas from the Chantiers de l’Atlantique shipyard in France.

At 236,857 gross registered tonnes (grt), the ship is biggest cruise ship ever built. It is the fifth installment in Royal Caribbean’s Oasis-class, which kicked off in 2009 with the Oasis of the Seas. The other four ships in the class come in at 225,000 grt to over 228,000 grt.

With its delivery, Wonder takes the “world’s largest” crown from sister ship Symphony of the Seas, at 228,081 grt.

Wonder of the Seas measures 1,188 feet in length and 210 feet wide. Passenger capacity comes in at 6,988 guests with an additional 2,300 crew.

Wonder of the Seas will make its official debut in Fort Lauderdale, Florida, in March, starting with 7-night cruises to the Caribbean before heading to Barcelona, Spain and later Rome to offer summer cruises in the Mediterranean....

....MORE

Chantiers de l’Atlantique has some experience with big boats. Really, really big boats. Here's a January 2020 post:
French Shipyard Chantiers de l’Atlantique Nabs a Big Order

From LNG World News:

Chantiers de l’Atlantique bags MSC Cruises LNG pair
MSC Cruises and Chantiers de l’Atlantique have signed firm contracts for the construction of third and fourth LNG-powered MSC World Class ships.  

The vessels are scheduled for delivery in 2025 and 2027,  Chantiers de l’Atlantique said in its statement.

The first of the initial two ships in the class is currently under construction at Chantiers’ shipyard in Saint-Nazaire and is due to enter service in 2022. With 205,000 GT, she will become the biggest vessel operated by a European cruise line as well as the first LNG-powered cruise ship built in France.

These contracts represent a capital investment by MSC Cruises exceeding €2 billion ($2.2 billion).
The two companies have also extended their partnership over the next decade with two additional newbuild projects....MORE

Previously:
November 2019
Shipping: Two Approaches To NextGen Power: Maersk Goes With Batteries In a Box; 
Chantiers de l'Atlantique and MSC Cruises Trial LNG Fuel Cells 

...And speaking of big, the Saint-Nazaire yard built four of these suckers, second only to the 657,019 DWT Happy Giant as the largest ultra-super-mega tankers. Batillus was the lead ship of the class:

Batillus class tanker, 555,000 DWT.

We've mentioned it a few times. 

Related: 

France's Chantiers de l’Atlantique Shipyard To Build Ships With Fuel Cells, Ships With Sails

Shipping: "MSC Gulsun Departs Port of Tanjung Pelepas with Record-Breaking 19,574 TEUs"

From gCaptain:

The Port of Tanjung Pelepas (PTP) in Malaysia has broken its own record for containership utilization after the MSC Gulsun, the largest container ship in the world, departed with 19,574 TEUs loaded on board.

The milestone is now the third time PTP has set the world record for vessel utilization and the first port in the world to set back-to-back records.

The Port of Tanjung Pelepas is a joint venture between MMC Group and APM Terminals. With capacity to handle up to 12.5 million TEUs annually, it is one of the most advanced container terminals in the world. The port is situated on the eastern side of the mouth of the Pulai River in South-West Johor near confluence of some of the world’s busiest shipping lanes. PTP has 14 linear berths totaling over 5km in length, and is equipped with 58 Super Post Panamax cranes, 16 of which have a 24-box outreach. The cranes also have twin-lift capability. PTP’s current average berth productivity for mainliner vessels stands at 100 moves per hour minimum....MORE

As noted back in March:
Container Shipping: "MAN Hired for World’s First Megaship Conversion to LNG Fuel"
I am not familiar with this "Megaship" nomenclature. ULCS or ULCV but not the "Megaship.

Hong Kong's Orient Overseas Container Line is currently running the largest capacity container ships at 21,400 TEU with a couple of COSCO's ships also over 21,000 TEU.
CMA CGM's flagship, the Antoine de Saint Exupery clocks in with capacity of 20,950 TEU and Maersk has a fleet over 20,000 TEUs.

Those might be "Megaships". And the 23,350 TEU behemoths that MSC has on order definitely would have to be....

Well the Gulsun was delivered in July and is one of nine that will be coming into service by June of next year.

It was only a year ago we were posting:
"Maersk Containership Loads World Record 19,038 TEUs in Malaysia"

Has Maersk Gone Into The Corporate Officer Training Business?

First it was mid-November's "Maersk Chief Operating Officer Jumps Ship, Lands In CEO Slot at MSC".
And now this, from Bloomberg, November 25:

General Electric Co. hired Carolina Dybeck Happe as its next chief financial officer, giving top boss Larry Culp a new partner to help tackle one of the trickiest turnaround efforts in corporate America.

Dybeck Happe, who is resigning as finance chief at A.P. Moller-Maersk A/S, will replace Jamie Miller in early 2020, GE said in a statement Monday. The incoming executive will oversee GE’s global finance organization and activities including accounting, tax planning and internal auditing.

The hiring was the result of “a rigorous global search process,” Culp said in the statement. Dybeck Happe “brings a compelling blend of strategic and capital allocation discipline, well-honed operating skills, and transformational leadership abilities.”

The move answers a question that has hung over GE since July, when Culp said he would seek a new No. 2 to help him turn the company’s fortunes around. Dybeck Happe, 47, will face major challenges from day one, including strained cash flow, a balance sheet weighed down by debt and federal investigations of GE’s accounting.

GE was little changed before regular trading Monday in New York. The shares surged 59% this year through Nov. 22, outpacing the broader market as GE partially rebounded from a deep slump.

Dybeck Happe, who joined Maersk in January, becomes the latest executive to depart the world’s biggest container shipping company as it grapples with a tough market amid a global trade war. The company lost its chief operating officer two weeks ago. Dybeck Happe previously spent 16 years at lock manufacturer Assa Abloy AB....

....MORE

Thanks to a sharp-eyed researcher for the catch that, back in "Ecoimagination" days I'd have sniffed out before it was announced.
Or perhaps shortly thereafter.

"Shipping giant MSC opens new trade route to bypass Hormuz disruption"

The first lesson of commodity trading (second lesson of ecology*): Humans are quite adaptable.

From EuroNews, May 11:

As tensions choke the Strait of Hormuz, Mediterranean Shipping Company races to keep global trade moving with new route.

Global container shipping giant, Mediterranean Shipping Company (MSC), has announced a new Europe-Red Sea-Middle East express service, linking key European ports with Saudi Arabia and other regional hubs.

The announcement comes as companies across global supply chains respond to surging demand and mounting disruption across Middle Eastern trade routes as a result of the US-Iran conflict.

MSC said its new service will offer faster, more efficient, multimodal alternatives in an increasingly volatile maritime landscape.

Ships sailing from the Baltic sea and across Europe will be directly connected to Jordan’s Aqaba, Saudi Arabia's King Abdullah Port and Jeddah via the Suez Canal....

....MUCH MORE 

*The first lesson of ecology is: Everything is connected. 

As we saw in 2022 when MSC surpassed Maersk as the largest container shipping line, different business models require different assets. French standard bearer CNA CGN rounds out the top three.