Hapag-Lloyd AG is one of the largest shipping container companies in the world today, currently ranking fifth internationally. The company is based in Hamburg, Germany. Hapag-Lloyd Ag transports 5 million cargo units each year, and has a fleet of 140 vessels. The prominent company has chosen to work with the port of Baltimore to dock its containers coming from Northern Europe.
Details of Arrangement
The arrangement with Hapag-Lloyd AG is expected to start in February 2012. The arrangement has been discussed for many years now. The influential company called Baltimore roughly three months ago with news of an opening for a port on the Atlantic. The Baltimore port is ranked 13th among the 44 ports in America, based on tons of cargo handled.
Alternative Companies
Other competitors for this vacancy were Ports America Cesapeake and CSX. The advantages that Ports America offered included deep water capabilities, and post-Panamax cranes. CSX has a project to handle double stacked freight trains, which is possibly by the National Gateway Rail Project. Despite these advantages, the Baltimore port got the deal because of its national standing and close proximity to key interstate roads.
The new traffic from Hapag-Lloyd AG will increase port traffic at Baltimore by approximately 10%. This will not only increase the area’s prominence in the maritime trading industry, it will also create new jobs for the city.
Employees are Excited
Many employees at the Baltimore port have expressed their excitement at the new deal. The executive director of the Maryland port Administration, James White, said “This is very good news”. Aaron Ellis, a spokesman for the Virginia-based American Association of Port Authorities, said “In this economy, that’s a big deal, a reason to celebrate”. Even the governor, Martin O’Malley, called the new agreement “outstanding news”.
With the new arrangement, the Baltimore port will be the first in the US to handle the shipping containers filled with merchandise from Northern Europe en route to Central America. The route is officially called the “Gulf of Mexico Express”.