Hapag-Lloyd to Axe Over 10 Pct of Workforce after Merger with UASC

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  • As Navig8 Chemical Tankers Inks Sale & Leaseback Deals for Tanker Pair

The completion of the merger between Germany’s container carrier Hapag-Lloyd with UAE-based counterpart UASC will result in cutting of up to 12 percent of its almost 11,000 land-based workforce, the company’s spokesperson confirmed to World Maritime News.

Nevertheless, the downsizing of workforce would not affect over 2,000 of sea-based jobs.

The job cuts would be implemented over the following year and a half. Further details on the potential locations and types of jobs to be slashed were not disclosed.

“However, our headcount, will be reduced gradually and not with first priority. Our biggest priority is now business continuity, to keep the business stable and keep all the customers. If you look two years ahead, the workforce will probably be a little bit more than 10 per cent smaller than what it is today,” a statement from the company reads.

The closure of the merger was announced on May 24.

Hapag-Lloyd now plans to combine its 118 services with the 45 services making up UASC’s network, a process estimated to start in roughly eight weeks, taking up to the end of the third quarter.

The combined entity will thereby carry an estimated annual transport volume in excess of 10 million TEU.

With the closure of the merger, Hapag-Lloyd will assume the fifth spot in terms of capacity with 230 vessels and a shared fleet capacity of approximately 1.6 million TEU. The combined fleet will have average ship age of 7.2 years.

In the meantime, chemicals shipping company Navig8 Chemical Tankers has entered into sale and leaseback agreements with CMB Financial Leasing for two of the company’s 25,000 DWT stainless steel chemical tankers.

The ships in question are 2017-built Navig8 Saiph and Navig8 Sceptrum, and the expected net proceeds from the transaction are set at USD 66.84 million.

“A portion of the proceeds will be utilized to repay existing loans used to finance the vessels’ newbuilding contracts under the bank loan facility announced by the company on November 3, 2016,” the company said.

Navig8 Chemical Tankers has entered into 7-year bareboat charters with CMB for the vessels that will be sold and delivered to CMB.

The company has purchase options to re-acquire the vessels during the charter period, with the first such option exercisable on the third anniversary of the date of delivery of each vessel to CMB, and obligations to repurchase the vessels at the end of the bareboat period.

Navig8 has 31 chemical carriers delivered to its fleet and anticipates delivery of one more ship by mid-2017.

World Maritime News 

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