Norway’s DOF snaps up Maersk Supply Service + EU considers imposing customs to curb cheap Chinese retail

Norwegian supply shipping company DOF Group will acquire Maersk Supply Service from Maersk Supply Service Holding (MSSH) in a USD 1.1 bn cash and stock transaction, Reuters reports. DOF will pay USD 577 mn in cash and issue new shares, with MSSH gaining 25% ownership in DOF. The acquisition will be executed through a new subsidiary, DOF Offshore Holding Denmark, and is expected to close in 4Q 2024. The transaction will be financed by a USD 500 mn debt facility and up to USD 125 mn in equity.

The EU plans to impose customs duties on inexpensive goods from retailers including Chinese online retailers Temu, Shein, and AliExpress, Reuters reports, citing a Financial Times exclusive. The European Commission will propose scrapping the current EUR 150 duty-free threshold for online purchases from outside the EU later this month, sources told the FT.

Why the change? 2 bn parcels valued under EUR 150 were shipped to the EU last year, straining customs resources, according to the European Commission, which says that “the sheer volumes of e-commerce are testing customs' limits.” The EU has been discussing abolishing the limit since May 2023, but could look to speed up its adoption in light of the surge in cheap imports from China.

Adding fuel to the fire: Shein and Temu have also been driving up freight rates by buying up a significant portion of aircraft space. This is adding to market concerns of a capacity overload during the peak festive season this year. Air freight prices out of Asia rose by some 40% y-o-y in June, a season that is usually slow ahead of the end-of-year holiday rush.