Hapag-Lloyd sees no alternative to increasing the freight rates

Container shipping company Hapag-Lloyd achieved positive results in 2011 despite significant burden from severe energy cost rises

In response to further increases in bunker costs in the first few weeks of the current financial year the Hamburg-based container shipping company Hapag-Lloyd implements a sharp increase freight rates beginning in March and April. “These increases are unavoidable in order to get back to adequate and sustainable rates again,” Michael Behrendt Chief Executive Officer of Hapag-Lloyd, said to journalists. According to his statements the market has accepted these measures.

In the 2011 financial year Hapag-Lloyd increased its transport volume by 5.1 per cent to 5.198 million TEU. The average freight rate was USD 1,532/TEU, which represents a decline of 2.4 per cent on the previous year. Revenue came to EUR 6.1 billion, compared with EUR 6.2 billion in 2010. This decline was largely due to exchange rate fluctuations. In US dollars, the main currency for Hapag-Lloyd’s operational business, revenue rose by around 3.2 per cent.

Much higher energy costs severely depressed Hapag-Lloyd’s earnings in 2011. The average bunker price over the year was USD 605/ton, which is more than USD 150/ton higher than the year before, an increase of 34 per cent. The additional energy expenses of around USD 600 million could not be passed on to customers, due to the ruinous competition of some market players in 2011. In the balance sheet this caused an operating result that came to EUR 101 million. Earnings after interest and taxes were slightly negative at minus EUR 29 million (2010: plus EUR 429 million). On the closing day of the balance sheet Hapag-Lloyd had 6,873 staff. The fleet consists of 149 vessels (67 of them own units) providing 680,000 TEU capacity.

Quelle: LogEastics
Portal: www.logistik-express.com