Singapore-based liner operator Swire Shipping has acquired US-based Westwood Shipping. Westwood Shipping is a multi-purpose shipping company serving trans-Pacific trade, focusing on the Japanese, Korean and Chinese markets to and from the Pacific Northwest.
The acquisition is being made through Swire Shipping's subsidiary SSPL US, which has signed a definitive agreement with J-WeSco, a subsidiary of Sumitomo Warehouse Ltd., to acquire Westwood Shipping from it. "This acquisition reinforces Swire Shipping's growth strategy to expand its liner service network while completing the vertical integration of many of its shipping services with first- and last-mile overland services," said Swire Shipping, which currently has a fleet of Multipurpose fleet with a wide range of specialist customer solutions for containers, project cargo, heavy-duty, breakbulk and small break bulks.
James Woodrow, Managing Director of Swire Lines, said: "Over the years, we have been looking to strengthen our business partnership in Pacific and Westwood, with its excellent safety standards, excellent reputation, excellent cargo handling capabilities, and long-term stable customer relationships. , it becomes a strong option."
The acquisition is still subject to regulatory approvals and customary closing conditions.
Jeremy Sutton, chief operating officer of Swire Lines, said that after the acquisition, Westwood will continue to provide existing services with its teams in Japan, the United States, Canada, South Korea, and China, while Senwa Maritime Agency will also continue to serve as Westwood's general agent in Japan. , South Korea's longtime agent Hyop-Woon International Co also remained unchanged.
John C. Mahoney, President and Chief Executive Officer of Westwood, said: "We look forward to benefiting from Swire Line's extensive experience while continuing to maintain our customers' supply between Northeast Asia and the Pacific Northwest through our independent, reliable, and flexible operations chain."
Westwood Shipping was established in 1980 as a multi-purpose operator serving the trans-Pacific trade routes to and from the Japanese, Korean and Chinese markets in the Pacific Northwest. The purchase price has not been announced.
According to the latest data from Alphaliner as of the 28th, Swire Shipping currently ranks 30th with a capacity of 47,428 TEU and operates 30 ships, including 25 self-owned ships and 5 leased ships. Westwood Shipping ranks 52nd with a capacity of 15,492TEU and operates 14 vessels, including 7 owned vessels and 7 chartered vessels. Earlier this week, Swire Shipping launched a new route between Ho Chi Minh, Vietnam, and Seattle in partnership with UWL, a top 20 freight forwarder in the United States. The route is claimed to be the fastest port-to-port service on the market, with transit times of 16 to 18 days.
The service has priority berths in Seattle and Vietnam, the schedule is announced six months in advance, there are two ships per month, and 6,000 new containers are available as part of the Ho Chi Minh shipper's dedicated equipment.
Swire Shipping operates 14 liner routes, calling at more than 400 ports. The launch of the service also marks the company's efforts to strengthen its presence on the US West Coast. The company has recently expanded its partnership with SSA on Seattle Terminal services and has partnered with SSA for Polynesian service. It also has partnerships with Ho Chi Minh-based container terminal operator SP-ITC, and Asian and Australian maritime and logistics services provider Ben Line Agencies.
A recent report by Alphaliner shows that the market share of the three major alliances on transpacific routes has fallen from 82.2% to 67.7% as global operators launch independent services and many new niche operators enter the booming trade routes.
Data from Copenhagen-based maritime consultancy Sea-Intelligence shows a sharp drop over the past year from a pre-pandemic baseline of 6,000 to 6,500 TEU on the Asia-North America west coast route to 2022 due to a regular influx of smaller vessels A little less than 4,500 TEUs per year. The same is true for the East Coast of Asia-North America, which has fallen from a baseline of 7,500 to 8,000 TEU in 2020 to just over 6,000 TEU in 2022.
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