Alphaliner has singled out Singapore’s Pacific International Lines (PIL) as the “only unencumbered candidate” for another bout of industry consolidation.
The analyst has viewed PIL’s ties with Cosco as an indicator of which carrier may be likely to take on the next industry acquisition move.
In its weekly report, Alphaliner stated that PIL’s niche position on Africa-related trades makes it “an attractive target”, noting that the only other suitable mid-scale candidates would be government-backed Yang Ming, Hyundai Merchant Marine (HMM) and Zim, with a capacity share between 1.5% and 2.8%.
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Alphaliner added that PIL’s US$2.6 billion debt didn't detract from its attractiveness as its “cash-strapped” counterparts could rely on government funding to bail them out of financial trouble.
PIL recently raised cash from asset sales and put up collateral to secure bank borrowing to pay off outstanding debt.
Alphaliner has provided further insight after reporting that HMM slashed its containership capacity between April and the end of June.
