United Arab Shipping Company

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UNITED ARAB SHIPPING COMPANY (S.A.G.)
Industry Transport, Container shipping
Founded 1976
Headquarters Dubai, U.A.E.
Area served
Worldwide
Key people
Jørn Hinge CEO
Products Container shipping
Website www.uasc.net
UASC containers seen in a ship in the port of Hamburg.

United Arab Shipping Company "UASC" was established in July 1976; jointly by six shareholding Arab states of the Persian Gulf (Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and U.A.E).[1] Originally established in Kuwait with its Corporate Headquarters now in Dubai, UASC serves Asia from Port Klang, Northern Europe from Hamburg, the Middle East and Indian Subcontinent from Dubai, the Mediterranean and North Africa from Istanbul, and the Americas from Peachtree Corners, GA, USA.[2]

The UASC fleet operates more than 18 services.[3] today, connecting the Middle East to Europe, the Mediterranean, Indian Sub-continent, Far East, West Africa and the Americas. Its network covers over 200 ports [4] and destinations worldwide, offering containerized and conventional cargo transportations, temperature controlled cargo and value added services to a diversified client base.[clarification needed] UASC owns and operates a fleet of 52 ships (owned and chartered), 9 A13 (13,500 teus each), 8 A7 (6,921 teus each), 10 A4 (3,802 teus each), with a total capacity of 3,493,309 teus and is still expanding its fleet in line with the company’s strategic growth plan "towards 2014".

UASC initiated a global systems integration operation in anticipation of its capacity growth, and in that respect has been integrating its entire network with the latest high performing Integrated Container Carrier Information System 'TRUST',[5] which automates its business operations on all levels and ensures faster communication with the company’s fleet. The company's vision is "linking the middle east to the world"

Container ship Al Abdali (IMO 9154543, call sign HZCP)

As of 2013, the container shipping market is still characterized by overcapacity, and decreasing prices for new ships. UASC and China Shipping Container Lines cooperate on the Asia-Europe-Asia line, and has each ordered 5 ships bigger than the Maersk Triple E class. Delivery of the US$1.4B UASC order is to begin in 2014 from Hyundai Heavy Industries.[6][7] With options for 7 more ships, the order could rise to $2.5B. The ships are capable of being powered by liquefied natural gas which is plentiful in the Middle East. Big slow ships are necessary to lower operating costs.[8][9]

On 21 April 2016 the German shipping company Hapag-Lloyd announced that it is in merger talks with UASC. In case of business cooperation Hapag-Lloyd would integrate the fleet of UASC into its company while UASC would become Hapag-Lloyds biggst shareholder.[10] On June 28, Hapag-Lloyd’s share holders approved the deal. On June 29, UASC’s six shareholding states voted unanimously to approve the proposed merger. The deal gives a relative valuation of the two businesses at 72% for Hapag-Lloyd and 28% for UASC. UASC is 51% owned by Qatar and 35% owned by Saudi Arabia with the remainder held by other Arab states.[11] The merger will make the new entity the 5th largest container vessel fleet, just behind COSCO.

Notes[edit]

  1. ^ "United Arab Shipping joins the frontline as other shipping companies retreat". The Tribune. Retrieved 6 March 2013. 
  2. ^ "Company Overview of United Arab Shipping Company". Businessweek. Retrieved 18 March 2013. 
  3. ^ http://www.uasc.net/service-routes
  4. ^ http://www.uasc.net/ports-of-service
  5. ^ http://www.uasc.net/trust
  6. ^ "UASC places US$1.4B boxship contract" World Cargo News, 30 August 2013. Accessed: 1 September 2013.
  7. ^ "Vessel ordering mania – why?" Container Insight Weekly, 30 June 2013. Accessed: 1 September 2013.
  8. ^ OLE ANDERSEN & TOMAS KRISTIANSEN. "UASC signs USD 2.5 bln deal with Hyundai" ShippingWatch, 30 August 2013. Accessed: 1 September 2013.
  9. ^ OLE ANDERSEN. "Jørn Hinge: New fleet will strengthen us globally" ShippingWatch, 30 August 2013. Accessed: 1 September 2013.
  10. ^ "Talks between Hapag-Lloyd and United Arab Shipping Company - Hapag-Lloyd". www.hapag-lloyd.com. Retrieved 2016-05-26. 
  11. ^ "UASC and Hapag-Lloyd's Merger Progresses- CM: Container Management". www.container-mag.com/. Retrieved 2016-06-30.