In the military world, it's called 'collateral damage,' meaning unintended casualties suffered due to an otherwise planned assault or airstrike. The results are predictable; senior officers apologize, cash payments are made to surviving family members, and an investigation is promised. The Maersk takeover of Hamburg Süd seems to qualify as such an event.

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5. IN THE MILITARY WORLD, IT'S
CALLED 'COLLATERAL DAMAGE,'
MEANING UNINTENDED
CASUALTIES SUFFERED DUE TO
AN OTHERWISE PLANNED
ASSAULT OR AIRSTRIKE. THE
RESULTS ARE PREDICTABLE;
SENIOR OFFICERS APOLOGIZE,
CASH PAYMENTS ARE MADE TO
SURVIVING FAMILY MEMBERS,
AND AN INVESTIGATION IS
PROMISED.

6. THE MAERSK TAKEOVER OF
HAMBURG SÜD SEEMS TO QUALIFY
AS SUCH AN EVENT.

7. IN THE AFTERMATH OF HANJIN'S AUGUST'S BANKRUPTCY,
BOTH SHIPPERS AND CARRIERS TURNED TO MAERSK TO SEE
WHAT THEY WOULD DO – BUY HANJIN ON THE CHEAP? PICK
UP A FEW HANJIN SHIPS?
INSTEAD, MAERSK SENIOR MANAGEMENT ISSUED A MILD
STATEMENT THAT SAID THAT WHILE THEY HAD NO IMMEDIATE
PLANS TO EXPAND, THEY WOULD LOOK AT OPPORTUNITIES IF
AND WHEN SOMETHING WAS AVAILABLE THAT MADE
LONG-TERM SENSE.
WHILE MAERSK IS THE WORLD'S LARGEST BOX LINE, THEIR
STRENGTH IS THEIR US AND EU ROUTES AS WELL AS THEIR
CUTTING-EDGE AND LOW-COST 19,000+ TEU TRIPLE E'S.

8. FOLLOWING THE HANJIN
SHUTDOWN, INSTEAD OF
RUSHING TO PURCHASE
THEIR SHIPS AND/OR
ROUTES, THEY
IMMEDIATELY
RE-CONFIGURED THEIR
SCHEDULES IN ORDER TO
TAKE ADVANTAGE OF THE
SHIPPER'S 'FLIGHT TO
SAFETY' IN LOOKING FOR
SPACE (EVEN AT HIGHER
RATES) IN CARRYING
PRE-HOLIDAY CARGO
KOREA-EU / KOREA-US ON
A CARRIER THEY
TRUSTED.

9. HAMBURG SÜD AS
COLLATERAL DAMAGE

10. FORMED IN 1871 BY ELEVEN
HAMBURG-BASED TRADING HOUSES
TO CARRY THEIR CARGO TO-FROM
LATIN AMERICA, RUDOLF A. OETKER
KG BOUGHT HAMBURG SUD IN 1955,
AND EXPANDED IT'S CARGO SERVICES
TO WHERE IT'S CONTAINER BUSINESS
RANKED IN 2015'S 7TH-RANKED BOX
CARRIER. INTERVENE?

11. HAMBURG SUD OPERATES 130 CONTAINER SHIPS (2015: 48
OWNED, 82 CHARTERED). THE OWNED SHIPS HAVE A LOAD
CAPACITY OF BETWEEN 1,100 AND 9,630 TEU, INCLUDING
21-24% REEFER PLUGS.
THEY ARE PRIMARILY DEPLOYED IN-OUT OF SOUTH AMERICA,
WHERE THEY SPECIALIZE IN ADDED-VALUE REEFER CARGO
SUCH FRUIT, VEGETABLES, FISH AND MEAT.
THE REMAINING SLOTS WERE FILLED WITH MORE
TRADITIONAL LATIN AMERICAN CARGO SUCH AS AUTOMOTIVE
PARTS AND TEXTILES.

12. WHAT WENT WRONG?

13. GLOBAL CONTAINER LINER SHIPPING HAS
BEEN GENERATING LOSSES FOR YEARS IN THE
FACE OF RISING OVERCAPACITY.
NEVERTHELESS, HAMBURG SÜD HAS
PERFORMED WELL COMPARED WITH ITS
COMPETITORS...THE OWNERS AND
MANAGEMENT OF HAMBURG SÜD MUST,
HOWEVER, RECOGNIZE THAT ACTIVE
PARTICIPATION IN THE CONSOLIDATION
PROCESS OF THE SECTOR CURRENTLY TAKING
PLACE WOULD ENTAIL AN EVEN HIGHER
CAPITAL REQUIREMENT.
THEIR DECEMBER 1 PRESS RELEASE ONTHE SALE
TO MAERSK EXPLAINED

14. THAT'S WHAT MAKES
HAMBURG SUD COLLATERAL
DAMAGE TO THE HANJIN
DEBACLE; THAT THEY NEEDED
TO INVEST IN FLEET OF
MEGASHIPS IN ORDER TO
REMAIN COMPETITIVE AND
(PERHAPS) PROFITABLE.

15. MAERSK INCREASES IT'S SHARE OF THE WORLD BOX
BUSINESS FROM 15.7% TO 18.6%, WHILE INCREASING IT'S
VALUE-ADDED REEFER AND PROJECT CARGO, WHILE RUDOLF
A. OETKER KG GRACEFULLY EXITS (SUBJECT DUE DILIGENCE)
WITH U.S. $ 5 BILLION. ONE HOPES ALL FUTURE
CONSOLIDATIONS END SO WELL.

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