United Arab Shipping Company (UASC) has been struggling financially, posting significant losses in 2015 and the first half of 2016. To rescue UASC, German shipping company Hapag-Lloyd agreed to a merger. The merger will make the combined company the fifth largest container carrier globally, gaining access to bigger ships on the Asia-Europe route. However, it remains to be seen if being the fifth largest will be large enough to withstand difficulties in the challenging ocean freight market.

1. UASC STAYS ALIVE

2. JOIN THE CONVERSATION
ON TWITTER
@XENETA_AS

3. ABOUT
XENETA
At Xeneta we believe there is an untapped
potential for everyone in the industry, to
systematically learn from our individual
and collective efforts. We hold true that "if
you cannot measure it, you cannot improve
it". That’s why we think actionable metrics
is the key to continuously evolve for every
business, and ultimately the entire industry.
Rethinking global logistics is the vision of
Xeneta.
With international experience from the
logistics industry, we have first-hand
knowledge of the challenges related to high
volatility and lack of transparency in the
ocean freight market. By combining
logistics background and information
technology expertise, we found the solution
WE ARE
TRANSFORMING
GLOBAL
LOGISTICS

4. ARE YOU PAYING THE
RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS
POTENTIAL IN REAL
TIME.
CONTACT US.

5. HEADQUARTERED IN DUBAI,
UNITED ARAB SHIPPING
COMPANY (UASC) HAS ONE OF
THE YOUNGEST CONTAINER
FLEETS CURRENTLY IN THE
OCEAN FREIGHT MARKET AS
WELL AS ONE OF THE LARGEST
IN THE MIDDLE EAST.

6. FOUNDED IN 1976 JOINTLY BY SIX
SHAREHOLDING ARAB STATES OF
THE PERSIAN GULF (BAHRAIN, IRAQ,
KUWAIT, QATAR, SAUDI ARABIA AND
UAE), THE COMPANY HAS ALMOST
200 OFFICES AROUND THE WORLD
AND COVERS APPROXIMATELY 240
PORTS AND DESTINATIONS
WORLDWIDE.

7. UASC FINANCIALS

8. WHAT LITTLE OF
UNITED ARAB SHIPPING
COMPANY’S
FINANCIALS THAT HAVE
BEEN MADE PUBLIC IS
CERTAINLY NOT VERY
PROMISING.
DURING THE FIRST SIX
MONTHS OF 2016, THE
COMPANY POSTED AN
OPERATING LOSS OF
USD $132 MILLION AND
NET LOSS OF USD $201
MILLION ON REVENUES
OF USD $1.5 BILLION IN
THE FIRST SIX MONTHS
OF 2016.

9. IN 2015, THE COMPANY HAD A NET LOSS OF $384.3 MILLION IN
2015, WHILE THE OCEAN CARRIER'S EARNINGS BEFORE
INTEREST AND TAXES (EBIT) WERE A LOSS OF $298.7 MILLION.
THE NOT SO STELLAR FINANCIALS PROMPTED ALPHALINER
TO NOTE THAT A NEGATIVE OPERATING MARGIN OF -9%
MAKES UASC “THE WORST PERFORMER AMONG ALL MAIN
CONTAINER CARRIERS THAT HAVE PUBLISHED FINANCIAL
RESULTS FOR 2015.”

10. OCEAN FREIGHT RATES ARE
INCREASING. FIND OUT HOW TO
STAY AHEAD OF THE MARKET.
DOWNLOAD
OUR WEBINAR

11. HAPAG LLOYD TO RESCUE

12. THE OCEAN FREIGHT
MARKET MAY NOT
HAVE KNOWN ABOUT
THE UASC’S
FINANCIALS IF IT HAD
NOT BEEN FOR THE
AGREEMENT WITH
HAPAG-LLOYD TO
MERGE. HAPAG-LLOYD
MADE THE
FINANCIALS PUBLIC IN
ITS ANNUAL MEETING
OF HAPAG-LLOYD
SHAREHOLDERS.

13. FINANCING ISSUES BLAMED ON A DEEP
INDUSTRY DOWNTURN
REPORTED BY REUTERS

14. PRIOR TO THE MERGER,
HAPAG-LLOYD PLACED ITSELF
FIFTH GLOBALLY IN TERMS OF
CARRIER CAPACITY, AND UASC
IN ELEVENTH PLACE.

15. THE MERGER WILL GIVE HAPAG-LLOYD ACCESS
TO BIGGER SHIPS ON THE ASIA TO EUROPE
TRADE ROUTE.
AFTER THE DEAL IS COMPLETED, EXISTING
HAPAG-LLOYD SHAREHOLDERS WILL OWN
72.2%OF THE NEW COMPANY AND THE SIX
MIDDLE EAST GOVERNMENTS (BAHRAIN, IRAQ,
KUWAIT QATAR, SAUDI ARABIA, UAE) THAT OWN
UASC WILL OWN 27.8% OF THE MERGED

16. LEARN HOW XENETA CAN HELP
YOU GET INSIGHT INTO YOUR
GLOBAL OCEAN FREIGHT PRICES.
REQUEST
DEMO NOW

17. 5TH LARGEST CARRIER GOOD
ENOUGH?

18. THE BENEFITS OF THE COMBINED UASC AND HAPAG-LLOYD
MARRIAGE ARE GREAT. HOWEVER, WILL BEING THE FIFTH
LARGEST CONTAINER CARRIER BE ENOUGH TO WEATHER THE
STORMY OCEAN FREIGHT MARKET?
UASC AND HENCE THE NEW COMBINED COMPANY DOES AND
WILL HAVE ACCESS TO DEEP POCKETS TO TAP INTO THANKS
TO THE FINANCIAL STAKE OF THE MIDDLE EAST
GOVERNMENTS.
IN ADDITION, DESPITE BEING DESCRIBED AS A “GROUPING OF
THE WEAK” THE START OF THE NEW ALLIANCE, THE ALLIANCE,
IS SCHEDULED TO BEGIN OPERATIONS IN APRIL 2017 AND
SHOULD BENEFIT UASC WITH ACCESS TO ADDITIONAL TRADE
LANES.