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 3 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.
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.