Terry Hutson
ANOTHER FAMOUS old shipping name is in the process of being absorbed into a larger conglomerate, with the acquisition of American Farrell Lines by Anglo-Dutch shipping giant P&O Nedlloyd.
Although the buyout is subject to final agreement and regulatory clearances from the United States Maritime Administration it seems a foregone conclusion that Farrell Lines, which was once named American South African Line and which traces its history to before the American Civil War, will become part of the current trend towards the global rationalisation of world shipping.
Farrell operates a fleet of five 2000-TEU container ships between the US East Coast and the Mediterranean and Black Sea. The rebranded Farrell Mediterranean Express service will be upgraded to a weekly basis with Eastern Mediterranean ports enabling it to link with P&ON's global network.
In an unrelated move the British company P&O is expected to announce the sell off of its bulk shipping arm on the Oslo Stock Exchange, in line with its announced demerger into a logistics business and a separate cruise operation. P&O's current bulk shipping comes in the form of subsidiary company Associated Bulk Carriers.
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