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# Hapag-Lloyd: Navigating the

Seas of Global Shipping
Table of Contents
1. Introduction
- Brief History of the Company

2. Company Pro le
- Vision, Mission, and Objectives

3. Product Portfolio
- Product Overview
- Market Value and Positioning
- Target Audience and Marketing Strategy

4. Market Entry Strategy for India

- Opportunity Assessment
- Competitive Analysis
- Marketing and Distribution Plan

5. Conclusion
6. Recommendations
7. Appendices
- Financial Data
- Market Research
- Product Mockup
8. References
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1. Introduction

1.1 Brief History of the Company

Hapag-Lloyd AG (Hapag-Lloyd) is a provider of shipping and

logistic services. It transports machinery, metals, textiles,
automobiles, furniture, chemicals, paper and forest
products, food and beverages, plastics, and rubber,
electronics, and various other goods. It transports these
products through reefer cargo, dry cargo, dangerous goods,
and special cargo. The company also provides various other
services including bilateral electronic data interchange
(EDI), online business, e-Mail, mobile, verified gross mass
(VGM), security information and US flag. Its online business
services include schedules, bookings, shipping instructions,
documentation draft cycle, container tracing and invoice
processing. The company operates in Asia, Middle East,
Europe, Africa, Latin America and North America. Hapag-
Lloyd is headquartered in Hamburg, Germany.

History of HAPAG and NGL companies before the

merger:
The company was founded in 1970 as a result of the merger
of two German companies specializing in maritime transport
– Hamburg-Amerikanische Packetfahrt-Actien-Gesellschaft,
founded in 1847. and Norddeutscher Lloyd (NDL), which
was founded in 1856.

Hapag is also known as the Hamburg America Line. It was

founded in 1847 in Hamburg. It became the largest German
and an international shipping company very quickly. It was
serving the market initiated by German migration to the
United States and later migration from Eastern Europe.
Hermann Henrich Meier and Eduard Crüsemann founded
NDL (North German Lloyd) in Bremen in 1857. It became
one of the most important German shipping companies in
the late 19th and early 20th centuries and contributed to the
economic development of Bremen and Bremerhaven.

History of Hapag-Lloyd:
Despite the first competition on the market between Hapag
and NGL, both companies decided to start cooperation in
1968 by sharing huge investments related to
containerization of their fleets. Finally, in September 1970,
the two companies merged under the name Hapag-Lloyd.

In 1998, Hapag-Lloyd was taken over by the German

tourism company TUI, and in 2002 became its subsidiary.
After joining TUI, all tourism-related activities, such as
charter airlines and travel agencies, were transferred to TUI
AG.

In 2008, TUI announced its intention to sell its shares in

Hapag-Lloyd before the end of the year. Industry
speculation predicted a sales price of around 5.9 billion
USD.

In 1972, Hapag-Lloyd founded the charter airline Hapag-

Lloyd Flug and purchased several Boeings 727 to be able to
transport passengers from Germany to ports. Later, the
airlines also added regular passenger flights. In 2002, TUI
created Hapag-Lloyd Express (HLX), a low-fare and high-
frequency airline. However, this company was never owned
by Hapag-Lloyd.
Since the merger in 2007, both airlines have been operating
as TUIfly.

Mergers and Acquisitions-Hapag-Lloyd:

• CP Ships Limited – In 2005, TUI agreed to take over the
Canadian company CP Ships Limited. Thanks to this, the
fleet has become the fifth-largest carrier in the world on the
global container transport market.
• Hamburg Süd – In 2013, Hapag-Lloyd planned to merge
with Hamburg Süd. The plan was unsuccessful due to the
rejection of the final offer from Hapag-Lloyd by the owners
and shareholders of the smaller company.
• Compañía Sud Americana de Vapores (CSAV) – In 2014,
Hapag-Lloyd acquired the Chilean company Compañía
Sud Americana de Vapores. Thanks to the merger, Hapag-
Lloyd has become the fourth largest container forwarding
company in the world.
• United Arab Shipping Company (UASC) – In April 2016,
Hapag-Lloyd announced that it was negotiating the merger
with United Arab Shipping Company. The merger was
agreed in 2016. In 2017, the integration between the two
companies was completed. As a result of the merger,
Hapag-Lloyd became the fifth largest container carrier in
the world in terms of vessel capacity, thus surpassing the
Taiwanese Evergreen line. The alliance also meant that
UASC would be the largest shareholder of the new mega
entity, and Hapag-Lloyd would become the sole operator of
the combined fleet.
•
Strategy of Hapag-Lloyd
The dynamically developing company decided to introduce the
Hapag-Lloyd 2023 strategy. It is aiming to become number one
on the market by providing high-quality services, increasing
profitability, and maintaining its position as a global player in the
shipowners’ market.
Their establishment plan will become a model in the container
transport industry, setting a quality standard, thus offering an
unrivaled level of reliability and quality of service to customers.

Sustainable development
Quality and environmental protection are an essential part of
Hapag-Lloyd’s organizational culture. The sustainable
development policy defines their commitment to protecting the
environment, ensuring the highest quality of services, and
taking care of employees’ health and safety.

Curiosities
Hapag-Lloyd has set up the Albert Ballin Prize to celebrate
the centenary of the death of Albert Ballin, CEO of HAPAG
and inventor of the concept of a cruise ship who died on
November 9, 2018. The prize aims to appreciate global
initiatives that foster networking and exchanges between
nations and cultures, as well as those who advocate the
victims of globalization. They also established two Albert
Ballin awards for globalization studies. Young scientists and
researchers will be rewarded for research that broadens and
deepens our understanding of the possibilities and risks of
globalization. Prizes will be awarded at regular four-year
intervals.

In 1997, the Hapag-Lloyd Foundation was founded. It aims

to promote culture, science, and social affairs, with
particular emphasis on development among young people.
The Foundation’s activities focus on cultural development,
using media such as theater, ballet, music, and visits to
museums. What is more, the company develops its owns
projects. They want to promote new talents.

Key figures-Hapag-Lloyd
 • Hapag-Lloyd has 235 modern ships serving 600 ports
around the world and transporting 11.9 million TEU per
year.
• The company employs approximately 12,800
employees working in 398 branches in 128 countries.
• Hapag-Lloyd has a fleet with a total capacity of 1.7
million TEU, as well as a warehouse with a capacity of
over 2.5 million TEU, including one of the largest and
modern refrigeration fleets in the world.
• According to data (June 2018), the owners of Hapag-
Lloyd are CSAV (27.3%), Klaus Michael Kühne
(including Kühne Holding AG and Kühne Maritime
GmbH 25.5%), HGV Hamburger Gesellschaft für
Vermögens- und Beteiligungsmanagement mbH
(13.9%)), Qatar Investment Office (14.5%), Public
Investment Fund on behalf of the Kingdom of Saudi
Arabia (10.2%), and about 8.6% of shares outside the
possession of large investors.
• Hapag-Lloyd’s activities have been awarded many
times. In 2019, it received three awards: a John Deere
award for achieving perfection, a DuPont Performance
Excellence Award, and a Seatrade Maritime Global
Performer Award.

2. Company Pro le

2.1 Vision, Mission, and Objectives

- Vision: To be the world's leading logistics company, connecting

people and goods across the globe.
- Mission: To provide efficient and sustainable transportation
solutions while fostering economic growth and global trade.
- Objectives:
- Achieve operational excellence.
- Foster environmental sustainability.
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 - Drive innovation in the shipping industry.

3. Product Portfolio

3.1 Product Overview

Hapag-Lloyd specializes in container shipping and logistics

services, offering a wide range of shipping solutions. Their
core products include:

- **Container Shipping**: Hapag-Lloyd operates a modern

fleet of container ships, providing global shipping services
for a variety of cargo types.
- **Logistics Services**: The company offers end-to-end
logistics solutions, including warehousing, transportation,
and customs clearance.
- **Reefer Services**: Specialized refrigerated containers for
the transport of temperature-sensitive cargo, ensuring the
integrity of perishable goods.

3.2 Market Value and Positioning

Hapag-Lloyd is one of the top five container shipping

companies globally, with a market value exceeding $10
billion. It has a strong presence in key trade routes,
including Asia-Europe, transatlantic, and intra-Americas.
The company's commitment to operational efficiency and
sustainability has helped maintain its competitive edge.

3.3 Target Audience and Marketing Strategy

Hapag-Lloyd primarily serves businesses engaged in

international trade, including manufacturers, retailers, and
exporters. Their marketing strategy focuses on:
- **Global Reach**: Leveraging an extensive network of
offices and partners to serve clients worldwide.
- **Customer-Centric Approach**: Tailoring solutions to meet
the unique needs of each customer.
- **Environmental Responsibility**: Promoting eco-friendly
practices and green shipping options.

4. Market Entry Strategy for India

4.1 Opportunity Assessment

Entering the Indian market presents significant growth potential

for Hapag-Lloyd. India's robust trade volume and expanding
economy create a favorable environment for shipping and
logistics companies. Key factors to consider include:

- **Market Size**: India's containerized cargo market is growing

steadily, driven by exports of textiles, automotive, and
electronics.
- **Infrastructure Development**: Investments in ports and
logistics infrastructure are improving connectivity and reducing
transit times.
- **Competitive Landscape**: Analyzing local competitors and
identifying market gaps.

4.2 Competitive Analysis

To successfully enter the Indian market, Hapag-Lloyd must

contend with established competitors. Strategies to overcome
these challenges include:

- **Differentiation**: Highlighting Hapag-Lloyd's global network,

advanced technology, and sustainability initiatives.
- **Local Partnerships**: Collaborating with Indian logistics firms
for better market penetration.
- **Customized Solutions**: Tailoring services to meet the
unique demands of Indian customers.

4.3 Marketing and Distribution Plan

- **Marketing**: Launch a targeted marketing campaign

emphasizing Hapag-Lloyd's strengths and commitment to
India's growth.
- **Distribution**: Establish strategic partnerships with Indian
logistics providers, utilize major ports, and expand inland
transportation options.

5. Conclusion

In conclusion, Hapag-Lloyd, with its rich history, clear vision,

and commitment to excellence, is a global leader in container
shipping and logistics. Expanding into the Indian market offers
immense potential for growth, provided a well-researched
market entry strategy is executed effectively. The company's
reputation for reliability, sustainability, and innovation positions it
well to succeed in the dynamic Indian market.

6. Recommendations

- Proceed with the market entry strategy, focusing on India's

growing logistics needs.
- Strengthen partnerships with local Indian logistics providers.
- Continue emphasizing sustainability and innovation in the
Indian market.

7. Appendices

Include financial data, market research findings, and a product

mockup.
8. References
https://www.shiphub.co/hapag-lloyd/
#:~:text=The%20company%20was%20founded%20in,as%20the%20Hamburg%20America%20
Line.

By: Urja Gala