European ocean carrier needed approval from continent’s governing anti-trust body before taking offer to public shareholders.
CMA CGM’s bid to enter the freight forwarding market took another step forward as the ocean carrier opened up its $1.68 billion bid for Ceva Logistics to the company’s public shareholders. Last week, the European Commission’s takeover board ruled that the combination of the fourth largest ocean carrier by size and the Swiss firm would not have an adverse effect on the market for ocean shipping. With that approval, CMA CGM is now allowed to take its $30.48 per share offer directly to Ceva’s shareholders in a public tender offer starting February 12. But whether shareholders bite on the offer is unclear. The board of Ceva still does not recommend that shareholders take the offer as it says a $40.64 per share offer is more in-line with third-party valuations of Ceva’s business.
DSV still aiming for takeover of Panalpina
Danish freight forwarder said to considering higher offer for Swiss rival. (The Loadstar)
Star Bulk Carriers reports fourth-quarter profit
One of the largest dry bulk carriers saw rates improve at the end of 2018. (ShippingWatch)
Two of Korea’s largest shipyards to merge
Hyundai Heavy Industries and Daewoo Shipbuilding coming to terms of deal. (ShippingWatch)
China’s coal restrictions hurt dry bulk trade
Import restrictions on quality and quantity of coal mean lower shipping demand. (Lloyd’s List)
Start-up aims to aggregate ocean freight for better deal
Ocean shipping can be a challenging endeavor as shippers try to spread their freight between fixed rate contracts and spot market contracts. The variability in the spot market means shippers can move cargo at prices well below their fixed-rate contracts or be faced with price spikes when capacity is tight and demand is high. A start-up called Shippabo aims to take some of the variability of that process, writes FreightWaves Vishnu Rajamanickam. The Los Angeles-based company essentially takes the container volumes from small to medium-size shippers and aggregates them to a sufficient quantity that it can get a competitive fixed-rate contract from ocean carrier. “It is really challenging for smaller shippers to get a contract that is competitive. And it is hard for these shippers to manage such big contracts as they lack a back office that can manage such a large contract,” said Nina Luu, the CEO and co-founder of Shippabo.