European Shipping and News

Transco Cargo offers shipments to European countries for personal effects and commercial cargo shipments. The cut-off date for European shipping is the Thursday of every week. We have a global network of shipping partners that enable us to provide streamline services to our clientele, especially for commercial requirements. However, we also feel its out duty to inform our clients of the situations and trends that concern European shipping.

The start of 2017 saw various deals that would affect the European shipping industry, such as the British American Tobacco PLC’s acquisition of Reynolds American Inc, Luxottica Group SpA and Essilor International SA, and the Safran SA and Zodiaz Aerospace deals to name a few. There has also been progress with nine European companies coming together to invest in the Iran port project to further the bond between Europe and the Middle East. More sustainable energy measures are being made with sustainability practices are being put into effect (as those mentioned in the previous week’s blog : Freight Management Trends). At the end of  2016, there was a increase in coal prices and a decrease in that of gas, and thus many shipping companies in Germany and Netherlands have made the change to gas.

Apart from the business deals that were announced, there has been unrest with concern to the shipping crisis, which had German banks under pressure.  The problem was that concerning the flailing container shipping industry in Germany against the far of increasing risk provisions. With mega-shipping companies opening up in Asia with better economies of scale and pricing strategies, European shipping companies such as those in Germany may not be able to cover costs that have posed questions whether they are able to compete with shipping companies from around the world.

The state of affairs in Germany is a repercussion from the global economic crisis of ‘07/’08 and later bad investments which has rendered Germany with an over-capacity of container ships and thus being unable to reduce freight rates to keep up with the rest of the world. A similar situation occurred with South Korean shipping giant Hanjin (one of the world’s top ten largest shipping companies declaring bankruptcy. The same direction can be foreseen if German banks do not attempt to help the matter. The Oetker Group have already sold their Hamburd Stüd shipping company to Maersk to ease with their overcapacity and financial situation.

The 2nd Edition of European Shipping Week is also happening in Brussels starting from 1st of March 2017, where shipping executives, and policy makers will converge to discuss the European shipping industry and its future in terms of the global trends and review the current situation.