HAPAG-LLOYD CEO Rolf Habben Jansen said it would not be in the container shipper's interest to make a counteroffer for HHLA, the main operator of Hamburg port, and may instead cut its traffic through the hub.
Switzerland-based MSC, the world's biggest container shipping company, offered to buy almost half of the port operator in a deal that could be worth nearly eur1.3 billion (us$1.4 billion).
Speaking to Reuters in an interview, Mr Habben Jansen said that as a result of MSC's bid, Hapag-Lloyd could reduce its transport to Central Europe through Hamburg to about 70 per cent or 80 per cent of current volumes.
Under the deal between MSC and the city of Hamburg, MSC will make a cash offer of EUR16.75 per share to acquire all listed class A stock in HHLA.
The city of Hamburg, which owns 69 per cent of HHLA's A shares and all of its unlisted S-shares, would retain control of Hamburg port with a 50.1 per cent stake via the S-shares.
As part of the deal, MSC has also offered to increase its transport volume through Hamburg port by 1 million TEU per year, a 12 per cent increase on 2022, when 8.3 million TEU passed through the port.
A Hapag-Lloyd source reacted with consternation to MSC's offer on last Wednesday, saying that effectively paying terminal fees to its biggest competitor under the deal would be an "affront".
Founded in 1847, Hapag-Lloyd considers the northern German city its home turf. It is also partly owned by the city of Hamburg and accounts for more than 50 per cent of container handling at the port.
Mr Habben Jansen said that the MSC-HHLA deal would change the competitive dynamics at the port.
"I believe that the volume that can be handled in Hamburg has its limits," he told Reuters, adding that there were some geographical disadvantages in comparison to its competitor in Wilhelmshaven.
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