The prospect of a takeover of Orient Overseas by COSCO Shipping has been raised for the second time this year. The logic for a deal isn’t clear. The two have a similar mix of existing routes, with COSCO being less exposed to Trans-Pacific trade (15% of total vs. 26% for Orient Overseas) and more to intra-Asia (22% vs. 16%). The combined entity would be number three globally, but would face antitrust challenges. An assessment would be trade-lane specific – for example the combined group would have a 10% share of Asia-U.S. west coast traffic. Orient Overseas also trades at a premium valuat...