English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Hapag-Lloyd hit by low freight rates

HAMBURG: March 24, 2017. Hapag-Lloyd reported a net loss of €93.1 million in 2016 on revenue that fell 12.5 percent from the previous year to reach €7.73 billion.

Despite a 12.3 percent drop in transport costs, it wasn't enough to offset a 15.4 percent decline in the average freight rate of US$1,036 per TEU due to "continued intense competition caused by overcapacities and subdued growth in demand being felt in all trades," said the company.

Hapag-Lloyd Hamburg 2The operating result fell from €310.3 million to €104 million during the year for an EBIT of €126.4 million, a drop of €240 million from the 2015 result.

"We had a very challenging market environment in the first six months of 2016," said CEO Rolf Habben Jansen. "Even though we performed relatively well in the industry in 2016, the bottom line is still that this result is not satisfactory," he noted.

With transport volume rising 2.7 percent last year to 7.6 million TEU, the company said it expects a moderate increase in the average freight rate and box volume this year, excluding the results of its impending merger with UASC.

"We expect some market improvement in 2017, but our success will largely depend on our ability to achieve more sustainable freight rates. Longer term, the lack of orders for new builds and the continued high scrapping figures point to a better equilibrium between capacity supply and demand," Jansen said.

Nevertheless the beginning of 2017 has seen the market "challenge" continue for Hapag-Lloyd because long term contracts have meant the company has not been able to benefit fully from rate increases, while bunker prices have risen "significantly".

"The key areas of focus for us in 2017 will be the launch of our new alliance as at April 01 and the rapid and seamless integration of UASC into Hapag-Lloyd," said Jansen. The merger is expected to accrue annual synergies of US$435 million from 2019, offset by a one-off transaction and integration cost of US$150 million.

More News

Written on 16/10/2017, 19:43
freightweek-news-update-week-42DUBAI: October 16, 2017. A recent study by Aramex in Dubai discovered that deliveries using 'what3words' rather than a conventional street address were 42...
Written on 16/10/2017, 15:47
maserati-makes-an-entrance-at-naritaMODENA: October 16, 2017. Maserati chartered an Air Bridge Cargo Airlines 747-400 freighter for the Japan launch of its MY18 Maserati GranTurismo and...
Written on 13/10/2017, 18:36
apl-adds-to-guaranteed-service-suiteSINGAPORE: October 09, 2017. APL has renamed its two guaranteed service offerings 'Eagle Guaranteed' and added 'Eagle Go' to the suite with a guarantee of...
Written on 13/10/2017, 16:59
dp-world-to-expand-in-dominican-republicDUBAI: October 12, 2017. DP World is planning to expand its US$400 million Caucedo port operations in the Dominican Republic with a new 400-meter berth...
Written on 12/10/2017, 19:48
hawaii-to-meet-the-maxDALLAS: October 12, 2017. With 44 consecutive years of profitability, Southwest Airlines has announced it will begin service to Hawaii from the U.S....
Written on 12/10/2017, 18:43
skyteam-members-look-towards-joint-ventureGUANGZHOU/AMSTERDAM: October 12, 2017. China Southern Cargo and Air France KLM Martinair Cargo have taken the first step towards a joint venture with the...
Written on 12/10/2017, 16:17
turkish-airlines-outperforms-marketISTANBUL: October 12, 2017. Turkish Airlines reported a 25 percent year-on-year increase in air cargo carried to over 97,000 tons in September as traffic...
Written on 10/10/2017, 16:47
cargolux-signs-cargo-codeshare-with-emiratesDUBAI/LUXEMBOURG: October 10, 2017. Cargolux and Emirates SkyCargo have signed a cargo codeshare agreement for passenger and freighter services. Both...
Written on 10/10/2017, 15:24
freightweek-news-update-week-41PITTSBURGH, PA: October 15, 2017. A Qatar Airways Cargo Boeing 777 freighter arrived at Pittsburgh International Airport last Thursday as the airline's...
Written on 06/10/2017, 21:28
miami-and-iata-agree-air-cargo-outlook-remains-strongGENEVA: October 04, 2017. IATA reports a 12.1 percent year-on-year increase in freight tonne kilometers (FTKs) in August for its members, the fifth time...
Written on 06/10/2017, 17:05
more-flying-fish-from-emirates-sky-cargoCOLOMBO: October 03, 2017. Emirates Sky Cargo says Sri Lanka fish exports have been booming in the past 12 months following the lifting of European...
Written on 05/10/2017, 21:25
wal-mart-to-provide-a-new-parcel-serviceBENTONVILLE, AK: October 03 2017. Walmart has acquired Parcel, a technology-based, 24/7 service that uses routing algorithms to deliver perishable and...
Written on 05/10/2017, 20:44
french-fruit-exporter-acquires-danish-reefersTINGLEY, Denmark: October 03, 2017. British-registered Africa Express Line Ltd (AEL) has acquired 500 Star Cool integrated containers from Maersk...
Written on 05/10/2017, 19:36
qatar-cargo-adds-helsinki-as-finnish-pharma-industry-expandsDOHA: October 03, 2017. Qatar Airways Cargo has added Helsinki as its 74th pharma destination following the addition of Dublin in June this year. Chief...
Written on 05/10/2017, 16:53
volga-dnepr-returns-landshut-to-germanyFRIEDERICHSHAFEN, Germany. October 05, 2017. A former Lufthansa B737-200 aircraft, hijacked in 1977 by a faction of the Popular Front for the Liberation...
Written on 04/10/2017, 19:09
freightweek-news-update-week-40DOHA: October 08, 2017. Qatar Airways Cargo has taken delivery of its 13th B777 freighter. The airline's fleet now includes 22 freighters: eight A330F, 13...
Written on 28/09/2017, 19:01
sf-express-gets-ups-green-lightATLANTA: September 28, 2017. China's Ministry of Commerce has approved a proposed joint venture between UPS and SF Holding, the parent company of SF...
Written on 28/09/2017, 17:20
hapag-lloyd-completes-fleet-renewal-and-increases-capital-baseHAMBURG: September 28, 2017. Hapag-Lloyd is increasing its capital base by US$414 million with a share issue in order to reduce debt following its merger...
Written on 27/09/2017, 20:12
alaska-operates-first-b737-700-freighter-conversionANCHORAGE. September 26, 2017. Alaska Air Cargo has begun operating the world's first Boeing 737-700 passenger-to-cargo conversion with an inaugural...
Written on 27/09/2017, 16:49
round-the-world-box-service-goes-weeklyLONDON GATEWAY: September 27, 2017. The long-established 'Round-the-World' North Atlantic South Pacific (NASP) container service from Marfret and CMA- CGM...

- powered by Quickchilli.com -