HAMBURG: November 15, 2016. Hapag-Lloyd reported a loss of €133.9 million for the first nine months of 2016 on revenue of €5.74 billion. For the same period last year, the company made a profit of €160.4 million on revenue of €6.8 billion.
Net profit for its third quarter ending September 30 rose to €8.2 million from €3.2 million year-on-year, despite a drop in revenue from €2.1 billion to €1.9 billion in the period.
"The market has been very difficult so far this year, but in that environment Hapag-Lloyd has performed relatively well," said Hapag-Lloyd CEO Rolf Habben Jansen. "The overall results so far this year remain unsatisfactory, but the net profit in Q3 indicates that we are on the right track and that our efforts to further reduce costs and to leverage economies of scale are paying off."
Jansen said the company's main focus in the near-term would be to further reduce costs, ensure a smooth implementation of 'THE Alliance', and complete its transaction with the United Arab Shipping Company in a bid to "further solidify our position in this consolidating industry".
In the first nine months of 2016 the ocean carrier said its average freight rate per TEU fell 17.7 percent to US$1,037 due to market overcapacity and "modest demand". As a result, despite a 1.3 percent increase in the number of boxes carried to 5.65 million, revenue fell €1.1 billion compared to the same period in 2015.