American President Lines
Parent CMA CGM | | |
Website | apl |
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APL, formerly called American President Lines Ltd., is an American container shipping company that is a subsidiary of French shipping company CMA CGM. It operates an all-container ship fleet, including nine U.S. flagged container vessels.[1]
In 1938, the U.S. government took over the management of the Dollar Steamship Co., which was in financial difficulties and transferred their assets to the newly formed American President Lines.[2] In 1997, Singaporean shipping company Neptune Orient Lines (NOL) acquired APL, eventually moving APL's headquarters to Singapore. In 2016, CMA CGM acquired NOL, parent company of APL.[3][4]
History
Pacific Mail Steamship Company
Following the end of the
Prior to founding Pacific Mail, Aspinwall had extensive experience in the shipping business as a partner in
When in 1850, the Pacific Mail Steamship Company established a competing line to the
By 1850 Pacific Mail maintained a monopoly over the Panama-Oregon trade, helped by the purchase of two steamers from Empire City Line. Large numbers of prospective gold miners paying for passage to California had meant that by 1850, the capital of Pacific Mail had increased from $400,000 to over $2 million. Pacific Mail also ordered four new ships, designed to meet the needs of trade to and from California, and opened ship depots at Panama City and
In 1856, Aspinwall retired from the position of president of the Pacific Mail Company, with the former secretary, William H. Davidge, taking the presidency. Under his control, the company's capital doubled, to $4 million, but the major turning point of his presidency of the company was in 1858, when Pacific Mail's contract with the government expired. At the same time, the contract of the U.S. Mail Steamship Company also expired. This company had been providing the ships for the New York to Panama route and went out of business in 1859. A through service was deemed necessary (and profitable), and the company bought three new ships: the SS Adriatic, SS Atlantic and SS Baltic, all of which had formerly belonged to Collins Line. Competition from the other Atlantic steamship lines was fierce, however, and within a few years, the route on the Atlantic side was pulled.[5][7]
During the American Civil War (1861–65), Pacific Mail used its steamers to transport gold to the East Coast to support the Northern cause. The company also received the SS Colorado, launched from the same shipyard as the SS California. By the end of the war (1865), under the new presidency, Pacific Mail purchased its competitor, Atlantic Mail Steamship Company, which at this point was providing service from New York to the Isthmus. This in turn meant that, at last, Pacific Mail was able to provide complete service from New York to the West Coast via the Isthmus, without competition.[7]
In 1866, the
By 1867, the company was running four different lines:
- The Atlantic Line, between New York and Aspinwall, Panama. This ran thrice monthly.
- The Pacific Line, which linked with the Atlantic Line, which ran between Panama and San Francisco, stopping at Acapulco and Manzanillo. This route also ran thrice monthly, except for the latter, which ran once monthly.
- The China Line, between San Francisco and Hong Kong, stopping at Yokohama. This ran once monthly. This linked with the Pacific Line.
- The Shanghai Line, which ran between Yokohama and Nagasaki. This also ran once monthly, linking with the China Line.
Through these links, freight could be moved from New York to Yokohama in 42 days, to Shanghai in 47 days and Hong Kong in 50 days, including all detentions. In this same year, the company owned 25 ships, with a combined tonnage of 61,474 tons.[5]
In 1869, the completion of the
During the 1880s Pacific Mail modernized its ships with
In 1912, Congress banned ships owned by railroads from using the Panama Canal, and so Pacific Mail was sold to W. R. Grace and Company, where it operated as a subsidiary from 1916 till 1925, when the company's trans-Pacific fleet was bought over by the Dollar Shipping Company for $5,625,000 in cash.[12]
Dollar Shipping Company
Meanwhile, Captain
In 1902, Dollar sailed to Asia for the first time on a Pacific Mail ship, SS China, to prospect potential lumber markets on the other side of the Pacific. He began to acquire a number of ships, and began his trans-Pacific shipping with a
This was followed up in 1925 by the purchase of eight more "535 President Type" liners from the Shipping Board, which had previously been run by Pacific Mail. Dollar Shipping bid much lower than Pacific Mail for the ships—on the order of $1 million—but Pacific Mail's offer included stocks as well as cash. Thus, the Shipping Board declared that Pacific Mail was unable to meet the terms of tender, and awarded $30 million worth of ships to Dollar Shipping. This naturally caused troubles for Pacific Mail, and it was taken over by Dollar Shipping the same year, although Dollar had ordered his sons to begin buying stock of the company in 1920. In 1922 the Dollar Line also acquired the Admiral Oriental Line and renamed it the American Mail Line, making Dollar one of the most profitable shipping companies in the world.[2][10]
Dollar Line continued expanding its business in the late 1920s, buying five more "535 President Type" ships in 1926. In that year, Dollar Line carried over 45,000 passengers and had a gross revenue of $6 million. Dollar encouraged others to invest in Asia with his booklet, "Have You Investigated the Oriental Market for Your Product?", helping to open up Asia to 20th-century industry. The Merchant Marine Act of 1928 (also known as the Jones–White act) also helped Dollar Line, allowing it to sign a lucrative new mail contract and requiring it to build new ships to meet demand.[2][10]
On October 26, 1929,
On May 16, 1932, Robert Dollar died at the age of 88 and was succeeded by his son, Robert Stanley Dollar. The company began a steady decline. The faltering Dollar companies were now faced with sharply increased operating costs. In December 1937 President Hoover ran aground off the east coast of Taiwan, and was written off as a constructive total loss. By 1938 The company was $7 million in debt, with interest increasing this by $80,000 per day. In June 1938 President Coolidge was arrested (seized under admiralty law) in San Francisco for a £35,000 unpaid debt.[19]
American President Lines
In August 1938, the United States Maritime Commission judged the Dollar Shipping Company unsound and assumed control over it, appointing William Gibbs McAdoo to succeed R. Stanley Dollar and Joseph R. Sheehan as the new president of the line. The first item of business was an amendment to the corporate charter, renaming the line as "American President Lines".[2][18] American Mail Line was also sold to tobacco magnate Richard J. Reynolds and reorganized as an independent company. With that the Dollar Steamship, a long potent force in American shipping, became part of maritime history.[20]
By 1940, the U.S. government had commissioned 16 new ships for APL, continuing the "president" naming of ships, one of these examples being SS President Jackson, a C-3 class merchant vessel. In 1941, the U.S. entered World War II, and in 1942 the War Shipping Administration was created, of which APL was an agent. APL worked on the management of some of the Administration's ships, maintaining and overhauling them as well as crewing them and being responsible for the handling of cargo and passengers. APL's own ships were used, in addition to the many Liberty and Victory ships that were built. In 1944, an additional 16 ships were built specifically for APL, including SS President Buchanan, a Victory class vessel. At the end of the war in 1945, the company's assets were valued at $40 million.[2][21]
One of the APL ships in World War II still survives.
In 1945, R. Stanley Dollar, son of Robert Dollar, initiated court proceedings in the form of the Dollar case, in an attempt to force the return of the company from the government to his family. This case would last seven years, with the government continuing the operation of APL in the meantime. APL restarted its round-the-world passenger service, and launched the SS President Cleveland and SS President Wilson the next year, which were advertised as "your American hotel abroad." In the 1950s, the company again expanded, building more ships; 11 were built between 1952 and 1954. These included C-4 class cargo ships. Also, a settlement was finally reached in the Dollar case. Rather than the Dollar family taking back the company, it was sold to a group of investors led by Ralph K. Davies for $18.3 million.[2][21] At this time Davies also acquired control of American Mail Line with the aim of reintegrating it into APL.
In 1958, the company began investigating the possibility of
The increasing use of air travel meant that the company's passenger services had steadily been declining throughout the 1960s, and by 1973, the last APL liner, the SS President Wilson, completed her final round-the-world trip and was sold off. Also in 1973, American Mail Line was fully absorbed into APL, and its ships were subsequently given traditional "President" names. By 1971, the use of containers had again increased; 58% of the company's business moved via container. During the early 1970s, the company converted many of its traditional break-bulk freight and combination ships into more efficient container-only ships, and ordered four new-built container ships. In 1977, however, the line pulled back from worldwide freight service to focus on purely trans-Pacific routes. In 1978, the company began work on the concept of seamless integrated intermodal service in the U.S. market: the idea of moving containerized goods via ship, train and truck under one company identity. By 1979, APL started the LinerTrain,[21][23][24] a direct rail land-bridge service transporting containers from Los Angeles to New York using its own rail cars, leading to the most reliable delivery of containers of the time. At the same time, the company built its three largest vessels to date: three C-9 class diesel-powered container ships, the first of which was the President Lincoln.[21][23][24]
In 1984, the company started
Double-stacking containers greatly improved operating efficiency by reducing train length and the number of axles per container, thus saving fuel per ton-mile. Another benefit was created by permanently joining five cars in a set. This reduced the number of couplers, which reduced slack action. Slack is created in any train by the couplers between the cars being stretched and compressed, and in long, heavy trains this can be quite a powerful force. By reducing slack action, the damage caused to the freight transported in containers is also reduced.[24]
At the same time, the company continued to modernize its fleet, with ever-larger and faster ships, all of which were outfitted for container transport. APL also started a door-to-door service, known as the Red Eagle service. Another initiative was to introduce larger container sizes: 45-foot (14 m) containers in 1982, 48-foot (15 m) containers in 1985 and 53-foot (16 m) containers in 1988. Also in 1988, the company developed post-Panamax vessels, those too large to transit the Panama Canal. These ships were 903 feet (275 m) long and 129 feet (39 m) wide, with the ability to carry 4,300 TEUs, a TEU being an arbitrary container unit 20 feet (6.1 m) long. All these developments led APL to be declared an industry leader in 1989, with the award of the "Admiral of the Ocean Sea Award" by the United Seamen's Service to the president, W. Bruce Seaton.[21][23][24][25]
The 1990s were a period of continued growth for APL. It still clung to the tradition of naming ships after U.S. presidents, and it had a fleet of 20 fully containerized ships at this point with a combined capacity of 20,000 TEUs. In 1990, APL had a special request for Union Pacific 3985 to pull a 143-car doublestack train between Cheyenne, Wyoming and North Platte, Nebraska.[26] In 1991, APL started stack train service from Chicago to Mexico, serving Chrysler auto plants, as well as providing general service. The company also invested heavily in information technology, using this to keep track of its ever-growing fleet of trains, containers and ships. This has been continually upgraded ever since.[21][23][24]
In 1993, the company continued to increase its revenues, and entered a 30-year agreement with the Port of Los Angeles to open a new terminal, at a cost of $70 million. The next year, it almost doubled the size of its Seattle terminal as well, increasing it from 83 acres (340,000 m2) to 160. The company became the first shipper to open a website in 1995, and offered online shipment transactions. In 1997, the company was bought by Neptune Orient Lines for $285 million, at a cost of $33.50 per share.[23][24] In 1998, the APL vessel APL CHINA encountered a storm south of the Aleutian Islands. The losses to the cargo, with 388 containers going overboard and many others damaged as well as damage to the ship, initiated $50 million in lawsuit claims against APL. This may have been the largest maritime shipping loss in history.[27][28]
In 1999, the stack train franchise was sold off to Pacer, and is now known as Pacer Stacktrain. In the new millennium, the company's business began to falter. In 2001, parent company NOL reported losses of $57 million, followed by an amazing loss of $330 million in 2002. At this same time, APL's sales dropped from $3.8 billion in 2000 to $3.4 billion in 2002. Acting CEO Ron Widdows began a campaign of cost cutting and sped up decision making, and since 2003, the company has been making money again. In 2005, the company introduced the "Real-Time Locating System" using RFID tags, which accurately recorded the position of every container within the system, reducing delays and lost containers—APL's Global Gateway South terminal in Los Angeles now moves 1.65 million TEUs annually.[21][23][24][29]
In 2009, APL and other Neptune Orient business moved to a new headquarters in Singapore. Previously, APL had been based in Oakland, California.[30]
On June 10, 2016, APL and NOL became subsidiaries of CMA-CGM when over 90% of Singapore stocks were purchased by the container line.[31] Later that year, CMA CGM subsidiary U.S. Lines as well as the transpacific business of ANL was consolidated into APL.[32]
In November 2016, the Hong Kong
In January 2017, container ship APL Denver collided with Wan Hai 301, a ship belonging to Singapore, off Pasir Gudang Port in Johor, Malaysia. The accident occurred because APL Denver had crossed the path of Wan Hai 301 while it was moving through the separation scheme. APL Denver was heavily damaged, with at least 300 tonnes of oil spilled into the water near Pasir Gudang Port.[36]
Since October 2020, APL has focused exclusively on U.S. Government business - leaving CMA CGM as the sole brand in the transpacific.[37]
Terminals
APL operates marine terminals at ten strategic points around the world.
- Americas – Dutch Harbor (Alaska)
- Asia – Nhava Sheva(India)
Fleet
Ship class | Built | Capacity (TEU) | Ships in class | Notes |
---|---|---|---|---|
Temasek-class | 2013–2014 | 13,892 | 10 |
See also
References
- ^ "APL". The Journal of Commerce. Archived from the original on December 14, 2020. Retrieved December 25, 2020.
- ^ a b c d e f g h i j k "History — Timeline 1900–1959". APL. Archived from the original on January 17, 2013. Retrieved August 7, 2012.
- ^ Elias, Rahita (2004). Beyond Boundaries: The First 35 Years of the NOL Story. Neptune Orient Lines Ltd. p. 8.
- ^ "Corporate Structure". Neptune Orient Lines. Archived from the original on February 12, 2003. Retrieved July 1, 2008.
- ^ a b c d e Otis, Fessenden (1867). "Pacific Mail Steam-Ship Company". Isthmus of Panama. New York City: Harper & Brothers. pp. 149–167. Archived from the original on January 5, 2008. Retrieved June 2, 2008.
- ^ a b "History—The First Voyage". APL. Archived from the original on January 17, 2013. Retrieved July 1, 2008.
- ^ a b c d e f g h i "History — Timeline 1846–1899". APL. Archived from the original on January 17, 2013. Retrieved July 1, 2008.
- ^ a b c Levy, D.A. "Captains, Ships, Passengers in 1800s California—Steamships". The Maritime Heritage Project. Archived from the original on December 31, 2008. Retrieved July 1, 2008.
- ^ Somerville, Duncan S. (1983). The Aspinwall Empire. Mystic, CN: Mystic Seaport Museum, Inc. p. 22.
- ^ a b c d e f Levy, D.A. "Captains, Ships, Passengers in 1800s California—Shipping Lines". The Maritime Heritage Project. Archived from the original on July 20, 2008. Retrieved July 1, 2008.
- ^ Swiggum, S.; Kohli, M. "Pacific Mail SS Co". The Ships List. Archived from the original on June 11, 2008. Retrieved July 2, 2008.
- ISBN 978-0-874132991.
- ^ a b c "History: Robert Dollar, 1844–1932". APL. Archived from the original on July 19, 2012. Retrieved July 1, 2008.
- ^ "Part One: Robert Dollar and the SS President Hoover". The Takao Club. SS President Hoover. Retrieved May 7, 2013.
- ^ "Hoover Namesakes". Herbert Hoover Presidential Library and Museum. Archived from the original on March 26, 2013. Retrieved May 7, 2013.
- ^ Lloyd's Register, Steamships and Motor Ships (PDF). London: Lloyd's Register. 1933. Archived from the original (PDF) on September 10, 2014. Retrieved May 7, 2013.
- ^ "Travelling in Style". APL. Archived from the original on January 17, 2013. Retrieved July 1, 2008.
- ^ a b Swiggum, S.; Kohli, M. "Dollar SS Company". The Ships List. Archived from the original on May 16, 2008. Retrieved July 1, 2008.
- ^ "Part Two: The Wreck of the SS President Hoover". The Takao Club. Retrieved May 7, 2013.
- ^ Minutes of Special Stockholders Meeting. 1938.
- ^ a b c d e f g h i j "APL Limited Company History". Funding Universe. Retrieved July 5, 2008.
- ^ "Welcome Aboard". Lane Victory Maritime Center. Archived from the original on July 28, 2011. Retrieved July 31, 2011.
- ^ a b c d e f g h i "History—Timeline: 1960–Present". APL. Archived from the original on January 17, 2013. Retrieved July 5, 2008.
- ^ a b c d e f g h i "APL's Significant Contributions to Containerization". Seaports Press Review. Archived from the original on December 29, 2006. Retrieved July 5, 2008.
- ^ a b "History". Pacer Stacktrain. Archived from the original on September 7, 2008. Retrieved July 5, 2008.
- ^ "Heavy Freight and Union Pacific 3985". Pentrex. Archived from the original on July 17, 2019. Retrieved July 17, 2019.
- ^ "Lawsuits rock APL's boat". San Francisco Business Times. November 22, 1998.
- ^ "Ship disaster leaves APL lost in sea of legal woes". San Francisco Business Times. March 21, 1999.
- ^ "Los Angeles". Eagle Marine Services. Archived from the original on August 21, 2008. Retrieved July 5, 2008.
- ^ Ware Malcomb (February 26, 2010). "APL Phoenix Headquarters Relocation Complete". PRNewswire Distribution. Retrieved February 3, 2015.
- ^ "Acquisition of NOL: a historic milestone for the CMA CGM Group". CMA CGM Group. Retrieved June 14, 2016.
- ^ "Trans-Pacific businesses of ANL and US Lines to be consolidated with APL". APL. August 16, 2016.
- ^ "Hong Kong armoured vehicles seizure: What we know". BBC News. November 25, 2016.
- ^ "Terrex seizure: SAF will learn from incident, says Ng Eng Hen". The Straits Times. December 31, 2016.
- ^ "Hong Kong to return seized armoured vehicles to Singapore". South China Morning Post. January 24, 2017.
- ^ "Container carriers APL Denver and Wan Hai 301 collided in Malaysia". Maritime Herald. January 4, 2017. Archived from the original on May 11, 2017.
- ^ "The CMA CGM Group simplifies its trade network on the Transpacific trade". APL. July 6, 2020.
External links
- Official website
- NOL Group website Archived 2011-05-15 at the Wayback Machine (includes reports and financial information)
- SS Jeremiah O'Brien - Liberty Ship website
- SS Lane Victory - Victory Ship website
- Guide to the American President Lines Records, 1871–1995
- American Mail Line History and Ephemera GG Archives
- Dollar Steamship Line History and Ephemera GG Archives