Maersk Line’s takeover of Hamburg Sud could be positive in the long term as marginal players are forced to merge, according to HSBC.
The bank said smaller lines will have to combine to survive, or exit the market. They will be under more pressure from mounting losses and weak balance sheets.
HSBC believes Hapag-Lloyd, which is the most exposed to the Latin American routes specialised in by Hamburg Sud, should be a beneficiary of consolidation.
