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August 20 2018

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August 20 2018 | The Journal of Commerce 7 Spotlight Empower Your Team. Unlimited access to business-critical news and in-depth analysis on shippers- need-to-know. 19036 profi t a year earlier, despite a 6 percent jump in total volume to nearly 3.3 million TEU. The Ocean Network Express (ONE) in late June reported a $120 million loss in its fi rst quarter, following the merger of the container operations of "K" Line, MOL, and NYK Line. The container shipping industry earned about $7 billion in 2017, according to Drewry, following six straight years of losses. However, initial forecasts of an encouraging 2018 gave way to a slow start, as rising bunker fuel prices, higher charter/inland costs, and ocean overcapacity concerns have hit fi rst-quarter results. DP World expands European ocean reach DP World's acquisition of Unifeeder for $765 million complements the global terminal operators' drive to expand its reach inland by giving it control of the largest independent European short- sea and feeder service network. The Dubai-based company's acquisition, by Nordic Capital Fund V111 and minority shareholders, comes as marine terminals are seeking to extend their reach into the interiors of North America, Europe, and other markets, promising to better connect benefi cial cargo owners to inland markets and improve digital platforms to ease trade fl ows. DP World said the takeover of the Denmark-based shipping company, which is expected to be earnings accretive in the fi rst full year after the deal is completed, will further enhance its presence in the global supply chain and broaden its product o ering to shipping lines and cargo owners. The desire to control global end- to-end container logistics is a strategy that mirrors those being employed by container lines, most notably Maersk Group, which is using in-house units Maersk Line, APM Terminals, and Damco to give customers one stop for all their supply chain needs. Other carriers such as CMA CGM, Mediterranean Shipping Co., and Cosco Shipping are also pursuing this strategy in varying degrees. "The ever-growing deployment of ultra-large container vessels has made high quality- connectivity from hub terminals crucial for our customers, and Unifeeder is a best- in-class logistics provider in this space with a strong reputation in Europe," said Sultan Ahmed Bin Sulayem, chairman and CEO of DP World.

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