French container shipping company CMA CGM has approached German rival Hapag - plc about a possible merger , which was rejected by major shareholders of the German carrier , according to several unnamed finance sources . The move comes amid an oversupply of vessels that has led to a near decade - long recession , causing some companies to either merge or go out of business . Hapag - Lloyd cut its full - year profit margin in June , due to a slower - than - expected recovery of freight rates and higher fuel and charter costs . The US - China trade dispute is also adding to tensions , with plans for trade routes becoming unpredictable .
French container shipping company CMA CGM has approached German rival Hapag-Lloyd about a possible merger, which was rejected by major shareholders of the German carrier, according to three unnamed finance sources. The move comes amid an oversupply of vessels that has led to a near decade-long decline, forcing some companies to either merge or go out of business. Hapag-Lloyd cut its full-year profit forecast in June, due to a slower-than-expected recovery of freight rates and higher fuel and charter costs. The US-China trade dispute is also adding to concern, with demand for trade routes becoming unpredictable.