Hapag-Lloyd Finalizes Merger with UASC

Starting May 1, 2017, the newly merged Hapag-Lloyd–UASC entity will take the lead within their shipping alliance. For Hapag-Lloyd, this increase in scale without expanding fleet capacity is strategically important, as UASC brings a modern fleet of mega-vessels into the partnership:

• 6 vessels with 18,800 TEU

• 11 vessels with 15,000 TEU

• 9 vessels with 13,000 TEU

By comparison, Hapag-Lloyd contributes 10 vessels with 13,000 TEU. The combined fleet will consist of 237 ships with a total capacity of 1.6 million TEU, making the group the 5th largest container shipping company globally (UASC was previously ranked 11th).

Alliance Membership and Market Conditions

Until May 1, 2017:

• Hapag-Lloyd remains part of the G6 Alliance

• UASC remains part of Ocean Three

After the merger, the alliance will include Hapag-Lloyd (UASC), Yang Ming, Hanjin, MOL, NYK, and K-Line.

This merger occurs amid historically low freight rates, driven by ship overcapacity and reduced global demand. To stabilize the market, carriers are scrapping vessels at scale.

Shareholder Structure

Post-merger, 15.5% of shares in Hapag-Lloyd will remain publicly traded. Major shareholders are restructuring their holdings to make room for UASC stakeholders:

• CSAV: from 31.4% → ~23%

• City of Hamburg: from 20.6% → ~15%

• Klaus-Michael Kühne: from 20.2% → ~15%

• TUI: from 12.3% → ~9%

• Qatar (UASC): ~14%

• Saudi Arabia (UASC): ~10%

This new shareholder alignment reflects deep Gulf region involvement in one of Europe’s largest shipping companies.