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UASC Stays Alive

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UASC Stays Alive

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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. 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.

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. 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.

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UASC Stays Alive

  1. 1. UASC STAYS ALIVE
  2. 2. JOIN THE CONVERSATION ON TWITTER @XENETA_AS
  3. 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. 4. ARE YOU PAYING THE RIGHT CONTAINER FREIGHT RATES? DISCOVER SAVINGS POTENTIAL IN REAL TIME. CONTACT US.
  5. 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. 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. 7. UASC FINANCIALS
  8. 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. 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. 10. OCEAN FREIGHT RATES ARE INCREASING. FIND OUT HOW TO STAY AHEAD OF THE MARKET. DOWNLOAD OUR WEBINAR
  11. 11. HAPAG LLOYD TO RESCUE
  12. 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. 13. FINANCING ISSUES BLAMED ON A DEEP INDUSTRY DOWNTURN REPORTED BY REUTERS
  14. 14. PRIOR TO THE MERGER, HAPAG-LLOYD PLACED ITSELF FIFTH GLOBALLY IN TERMS OF CARRIER CAPACITY, AND UASC IN ELEVENTH PLACE.
  15. 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. 16. LEARN HOW XENETA CAN HELP YOU GET INSIGHT INTO YOUR GLOBAL OCEAN FREIGHT PRICES. REQUEST DEMO NOW
  17. 17. 5TH LARGEST CARRIER GOOD ENOUGH?
  18. 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.

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