The completion of the merger between German’s container carrier Hapag-Lloyd with UAE-based counterpart UASC will result in cutting of up to 12 percent of its almost 11,000 land-based workforce. This means the jobs of about 1,320 workers of the shipping company are on the line.
Based on reports citing the company’s spokesperson, over 2,000 of sea-based jobs would not be affected.
The job cuts would be implemented over the following year and a half. However, details on the location and types of jobs to be slashed were not disclosed.
The closure of the merger was announced on May 24.
Hapag Lloyd now plans to combine its 118 services with the 45 services making up UASC’s network, a process estimated to start in roughly eight weeks, taking up to the end of the third quarter.
The combined entity will thereby carry an estimated annual transport volume in excess of 10 million TEU.
With the closure of the merger, Hapag-Lloyd will assume the fifth spot in terms of capacity with 230 vessels and a shared fleet capacity of approximately 1.6 million TEU. The combined fleet will have average ship age of 7.2 years.
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