Nedlloyd
Encyclopedia
Nedlloyd was a Dutch
shipping company, formed in 1970 as the Nederlandsche Scheepvaart Unie (NSU) in a merger of several shipping lines:
In 1977 NSU changed its name to Koninklijke Nedlloyd Groep N.V. ("Royal Nedlloyd Group"), and in 1981 the Koninklijke Nederlandsche Stoomboot-Maatschappij (KNSM) merged into the group. Nedlloyd itself later merged with P&O
to become P&O Nedlloyd
, now a part of Maersk.
, was founded in Amsterdam
in 1870, while the Koninklijke Rotterdamsche Lloyd (KRL) was founded in Rotterdam
in 1875. In a long-lasting friendly rivalry, both shipping companies offered regular mail ship services between the Netherlands and the Dutch East Indies
, the Dutch overseas colony in South East Asia now known as Indonesia
.
Within the Dutch East Indies, inter-island services were provided by the Koninklijke Paketvaart-Maatschappij
(KPM), founded in Amsterdam in 1888 and with the operational head office in Batavia, now known as Jakarta
.
These shipping services to the Dutch East Indies were complemented by the Koninklijke Java-China Paketvaart Lijnen (KJCPL), also known as the Royal Interocean Lines, founded in Amsterdam in 1902 and with the operational head office at what is now Java Road
in Hong Kong
.
To ensure independence and to provide protection against involuntary take-overs by competitors, SMN, KRL and KPM formed an alliance under the name NV Nederlandsche Scheepvaart Unie in 1908, which also meant that the individual shipping companies were restricted to their agreed trading areas. Highlights of the pre-war developments were the introduction of passenger mail services sailing alternating from Amsterdam and Rotterdam via Suez and the Red Sea to Batavia, in addition to the regular freight services. The inter-island service with connections to Hong Kong was provided by the KPM and KJCPL with passenger-mail vessels Boussevain, Tegelberg, and Nieuw Holland. Passenger vessels managed by KRL and SMN were: Oranje, Johan van Oldenbarneveld, Indrapoera, Christiaan Huygens, Nieuw Holland, Marnix van St. Aldegonde, and Johan de Wit. The well-known Willem Ruys was still under construction at the beginning of World War II
at the shipyard in Vlissingen / Flushing and was flooded in the shipyard till 1945.
in 1949, and the subsequent loosening of the old colonial ties, trade with the former colonies declined. Some trade with Indonesia remained possible until 1960; thereafter Dutch vessels were no longer allowed to ply in Indonesian waters, resulting in the majority of the inter-island KPM fleet being laid up at Singapore
. As a consequence KPM was amalgamated into KJCPL in 1967.
Also during the post-WWII period, the Verenigde Nederlandse Scheepvaartmaatschappij (VNS) was formed and jointly owned by SMN, KRL, Holland Amerika Lijn, Van Ommeren and KNSM. In practice VNS was operating under different names - Holland Africa Line (originally founded in 1934 to provide coastal feeder services), Holland Persian Gulf Line, Holland Pakistan/India Line, Holland Fareast Line, Holland Australia Line - emphasizing the various trades.
The VNS was the experimental ground for improved integration and introduction of operational innovations, such as containers with the name “Kerklines” resulting in new operational systems viz unit-loads on the Australia service and extending vessels plying to the Far East with a container hold to meet the initial demand for container space.
The SMN, KRL and VNS parts of the new company, with a total seagoing fleet of 84 vessels, now traded under the name Koninklijke Nedlloyd. For a variety of reasons the KJCPL part of the company was kept outside the Nedlloyd scope, and remained a separate entity managed from Hong Kong with 53 seagoing vessels.
In 1977 the Nederlandsche Scheepvaart Unie N.V. holding company as a whole was renamed Koninklijke Nedlloyd Groep N.V. – Royal Nedlloyd Group.
In 1981 the Koninklijke Nederlandsche Stoomboot Maatschappij (KNSM), whose financial situation had detoriated considerably, was amalgamated into Nedlloyd. Before then the KNSM was still optimistic about surviving in the trading areas of the Caribbean, Mediterranean and South America. For that reason KNSM had taken over a number of transportation businesses, including the Koninklijke Hollandsche Lloyd (founded in 1908), well-known for its passenger vessels plying between Amsterdam and South America with mainly Eastern European emigrants after World War I
.
In 1985 Nedlloyd initiated a diversification programme and introduced a split in divisions, including non shipping divisions such as the development of worldwide forwarding and parcel services basically connected to the shipping division – the early start of supply chain management
. Overall the newly formed group had difficulty in identifying their own core activity, missed the real strategic views and over expanded into non-core activities Nedlloyd did not fully understand.
The desperately required commercial views were overshadowed by a “cashier’s mentality” resulting in a hostile takeover attempt in the late 1980s by the Norwegian investor Torstein Hagen
, aimed at steering back to the real shipping activities, leaving the Nedlloyd management panic stricken, digging in and manoeuvring into self defensive tactics, with the help of shareholders meetings, without facing the real problems.
As from 1990 Nedlloyd was facing a financial disaster and was forced to cash in by selling most of its non-shipping assets, and for the first time in its long history banks were dictating the rules and pulling the strings. The shipping group no longer owned the new buildings and lease plans were created to finance the new building programme and save the group from insolvency.
In 1997, Nedlloyd Lines – the liner shipping division – merged with British P&O Containers Ltd to become P&O Nedlloyd
, which was in turn taken over in 2005 by Maersk. The Nedlloyd brand, with its roots in facilitating Dutch colonial trading in a bygone era, thereafter ceased to exist.
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
shipping company, formed in 1970 as the Nederlandsche Scheepvaart Unie (NSU) in a merger of several shipping lines:
- Stoomvaart Maatschappij Nederland (SMN)
- Koninklijke Rotterdamsche Lloyd (KRL)
- Koninklijke Java-China-Paketvaart-Lijnen (KJCPL)
- Vereenigde Nederlandsche Scheepvaartmaatschappij (VNS)
In 1977 NSU changed its name to Koninklijke Nedlloyd Groep N.V. ("Royal Nedlloyd Group"), and in 1981 the Koninklijke Nederlandsche Stoomboot-Maatschappij (KNSM) merged into the group. Nedlloyd itself later merged with P&O
Peninsular and Oriental Steam Navigation Company
The Peninsular and Oriental Steam Navigation Company, which is usually known as P&O, is a British shipping and logistics company which dated from the early 19th century. Following its sale in March 2006 to Dubai Ports World for £3.9 billion, it became a subsidiary of DP World; however, the P&O...
to become P&O Nedlloyd
P&O Nedlloyd
P&O Nedlloyd Container Line Limited was an Anglo-Dutch worldwide ocean-going container shipping line, with dual headquarters in London and Rotterdam. The company was formed in 1997 by the merger of the container-shipping interests of the leading Dutch transportation company Royal Nedlloyd and the...
, now a part of Maersk.
Friendly rivlary: 1870-1945
The Stoomvaart Maatschappij Nederland (SMN), otherwise known as the Netherland LineNetherland Line
The Stoomvaart Maatschappij Nederland or SMN, also known as the Netherland Line or Nederland Line, was a Dutch shipping line that operated from 1870 until 1970, when it merged with several other companies to form what would become Royal Nedlloyd...
, was founded in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
in 1870, while the Koninklijke Rotterdamsche Lloyd (KRL) was founded in Rotterdam
Rotterdam
Rotterdam is the second-largest city in the Netherlands and one of the largest ports in the world. Starting as a dam on the Rotte river, Rotterdam has grown into a major international commercial centre...
in 1875. In a long-lasting friendly rivalry, both shipping companies offered regular mail ship services between the Netherlands and the Dutch East Indies
Dutch East Indies
The Dutch East Indies was a Dutch colony that became modern Indonesia following World War II. It was formed from the nationalised colonies of the Dutch East India Company, which came under the administration of the Netherlands government in 1800....
, the Dutch overseas colony in South East Asia now known as Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
.
Within the Dutch East Indies, inter-island services were provided by the Koninklijke Paketvaart-Maatschappij
Koninklijke Paketvaart-Maatschappij
Koninklijke Paketvaart-Maatschappij was a Dutch shipping company in the Dutch East Indies....
(KPM), founded in Amsterdam in 1888 and with the operational head office in Batavia, now known as Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
.
These shipping services to the Dutch East Indies were complemented by the Koninklijke Java-China Paketvaart Lijnen (KJCPL), also known as the Royal Interocean Lines, founded in Amsterdam in 1902 and with the operational head office at what is now Java Road
Java Road
Java Road is a street in North Point on Hong Kong Island, Hong Kong. It runs from the junction of Electric Road and Tin Chong Street in Fortress Hill to meet King's Road in Quarry Bay, near Hong Kong Funeral Home.-History:...
in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
.
To ensure independence and to provide protection against involuntary take-overs by competitors, SMN, KRL and KPM formed an alliance under the name NV Nederlandsche Scheepvaart Unie in 1908, which also meant that the individual shipping companies were restricted to their agreed trading areas. Highlights of the pre-war developments were the introduction of passenger mail services sailing alternating from Amsterdam and Rotterdam via Suez and the Red Sea to Batavia, in addition to the regular freight services. The inter-island service with connections to Hong Kong was provided by the KPM and KJCPL with passenger-mail vessels Boussevain, Tegelberg, and Nieuw Holland. Passenger vessels managed by KRL and SMN were: Oranje, Johan van Oldenbarneveld, Indrapoera, Christiaan Huygens, Nieuw Holland, Marnix van St. Aldegonde, and Johan de Wit. The well-known Willem Ruys was still under construction at the beginning of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
at the shipyard in Vlissingen / Flushing and was flooded in the shipyard till 1945.
Towards closer ties: 1945-1970
From 1948 onwards the co-operation between KRL and SMN extended to other geographical areas under the acronym Nedlloyd Lines; their services to the Dutch East Indies resumed, along with those by KPM and KJCPL. Following the birth of the State of IndonesiaIndonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
in 1949, and the subsequent loosening of the old colonial ties, trade with the former colonies declined. Some trade with Indonesia remained possible until 1960; thereafter Dutch vessels were no longer allowed to ply in Indonesian waters, resulting in the majority of the inter-island KPM fleet being laid up at Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
. As a consequence KPM was amalgamated into KJCPL in 1967.
Also during the post-WWII period, the Verenigde Nederlandse Scheepvaartmaatschappij (VNS) was formed and jointly owned by SMN, KRL, Holland Amerika Lijn, Van Ommeren and KNSM. In practice VNS was operating under different names - Holland Africa Line (originally founded in 1934 to provide coastal feeder services), Holland Persian Gulf Line, Holland Pakistan/India Line, Holland Fareast Line, Holland Australia Line - emphasizing the various trades.
The VNS was the experimental ground for improved integration and introduction of operational innovations, such as containers with the name “Kerklines” resulting in new operational systems viz unit-loads on the Australia service and extending vessels plying to the Far East with a container hold to meet the initial demand for container space.
Merger: 1970-1981
The more traditional SMN, KRL and KJCPL were facing difficult times which resulted in a government supervised analysis reviewing the current (1969) situation. A proper feasibility study presented by Jan J. Oyevaar reviewed competitiveness, future outlook and financial forecast. The analysis recommended a merger between the major Dutch shipping companies which resulted in the formation on June 15, 1970 of the Nederlandsche Scheepvaart Unie N.V. holding company.The SMN, KRL and VNS parts of the new company, with a total seagoing fleet of 84 vessels, now traded under the name Koninklijke Nedlloyd. For a variety of reasons the KJCPL part of the company was kept outside the Nedlloyd scope, and remained a separate entity managed from Hong Kong with 53 seagoing vessels.
In 1977 the Nederlandsche Scheepvaart Unie N.V. holding company as a whole was renamed Koninklijke Nedlloyd Groep N.V. – Royal Nedlloyd Group.
In 1981 the Koninklijke Nederlandsche Stoomboot Maatschappij (KNSM), whose financial situation had detoriated considerably, was amalgamated into Nedlloyd. Before then the KNSM was still optimistic about surviving in the trading areas of the Caribbean, Mediterranean and South America. For that reason KNSM had taken over a number of transportation businesses, including the Koninklijke Hollandsche Lloyd (founded in 1908), well-known for its passenger vessels plying between Amsterdam and South America with mainly Eastern European emigrants after World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
.
Decline: 1981-2005
Having concluded the giant merger which took about 10 years, and with the total rationalisation of Nedlloyd's shipping activities, a separate problem surfaced – coping with strong-headed management and decades old cultures. The pluriformaty of the original shipping companies could not be melted down into a new brand well in time.In 1985 Nedlloyd initiated a diversification programme and introduced a split in divisions, including non shipping divisions such as the development of worldwide forwarding and parcel services basically connected to the shipping division – the early start of supply chain management
Supply chain management
Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers...
. Overall the newly formed group had difficulty in identifying their own core activity, missed the real strategic views and over expanded into non-core activities Nedlloyd did not fully understand.
The desperately required commercial views were overshadowed by a “cashier’s mentality” resulting in a hostile takeover attempt in the late 1980s by the Norwegian investor Torstein Hagen
Torstein Hagen
Torstein Hagen is the Chairman and CEO of Viking River Cruises. Founded in 1997, the company has become the world's leading river cruise line, operating a fleet of 19 deluxe vessels on the waterways of Europe, Russia, Ukraine and China...
, aimed at steering back to the real shipping activities, leaving the Nedlloyd management panic stricken, digging in and manoeuvring into self defensive tactics, with the help of shareholders meetings, without facing the real problems.
As from 1990 Nedlloyd was facing a financial disaster and was forced to cash in by selling most of its non-shipping assets, and for the first time in its long history banks were dictating the rules and pulling the strings. The shipping group no longer owned the new buildings and lease plans were created to finance the new building programme and save the group from insolvency.
In 1997, Nedlloyd Lines – the liner shipping division – merged with British P&O Containers Ltd to become P&O Nedlloyd
P&O Nedlloyd
P&O Nedlloyd Container Line Limited was an Anglo-Dutch worldwide ocean-going container shipping line, with dual headquarters in London and Rotterdam. The company was formed in 1997 by the merger of the container-shipping interests of the leading Dutch transportation company Royal Nedlloyd and the...
, which was in turn taken over in 2005 by Maersk. The Nedlloyd brand, with its roots in facilitating Dutch colonial trading in a bygone era, thereafter ceased to exist.