Chinese Ports Hit Capacity as Virus Tests Slow Clearing
Testing of imported foods for the new coronavirus is pushing capacity at some major Chinese ports to their limit, major shippers told customers this week, warning of additional fees and possible diversions to other ports.China stepped up inspections of imported food last month after an outbreak of the coronavirus among people working at and visiting a major food market in Beijing."Import container pick-up activities have been severely impacted and as a result reefer plugs are highly utilized especially at the port of Yantian and Ningbo," said German shipping firm Hapag-Lloyd in a customer noti
Hapag-Lloyd Ups Profits, But Warns of Risks
German container shipping line Hapag-Lloyd on Wednesday reported preliminary results for the first half of 2020 showing core profits above those of the same 2019 period and upholding its guidance for full year earnings.However, the company said in an ad hoc announcement that the forecast was subject to “high uncertainty” due to risks related to the coronavirus crisis and its impact on the macroeconomy and global shipping.Hapag Lloyd achieved a 20.3% year-on-year rise in earnings before interest…
Port of Rotterdam to Trial PIN-free Container Handling
This week, various parties in Rotterdam will be launching a new pilot project, in which containers are handled and released without a PIN code: a widely used verification method in this transport segment. The project revolves around a new application, Secure Container Release, which replaces the PIN code with a digital signal: a solution that is significantly less susceptible to fraud. It is not only intended to make container handling more efficient, but also safer. Participants in the three-month trial include CMA CGM…
Optimarin Completes IMO G8 and USCG Test Program
Norwegian-based ballast water treatment (BWT) systems manufacturer Optimarin informs it has completed testing of its Optimarin Ballast System (OBS) in accordance with the revised IMO G8 guidelines, while also upgrading its existing U.S. Coast Guard (USCG) approval certificates to ensure compliance for zero to two hours holding time.The testing procedures were conducted at the NIVA test facility in Norway from September 2019 to the end of June 2020, with DNV GL operating as the designated Independent Laboratory. Tests were conducted with two different filters simultaneously.
Hapag-Lloyd to Halt Waste Shipments to China
German container shipping line Hapag-Lloyd said it had notified customers it will stop accepting cargoes of solid waste, including scrap metal, bound for China that arrive from September 1 onward to comply with new legislation.China in April passed a law, taking effect in September, that holds carriers and importers responsible for the return and disposal of solid waste that fails to meet import requirements.It plans a blanket ban on solid waste imports by end-2020 for environmental reasons."This legislation is applicable to all solid waste cargo such as waste paper, waste plastics, waste meta
Europa 2’s Cold Ironing Connection Certified by DNV GL
Ultra-luxury cruise ship Europa 2 has had its cold ironing connection certified by classification society DNV GL following testing of the undisrupted use and compatibility of the shore-to-ship power system in the Port of Hamburg.While idled due to the coronavirus pandemic, Europa 2 has been using cold ironing at the Cruise Center Altona in Hamburg for the past 30 days, reportedly marking the first time a cruise ship has been using cold ironing for a long period of time.Europa 2, with a maximum of 500 passengers requires 2.2 megawatts (MW) of power per hour during its lay time.
Port of LA Cargo Volume Down 30% in May
The coronavirus pandemic and ongoing U.S.-China trade tensions threaten the peak holiday shipping season for the Port of Los Angeles, which just suffered its slowest May in more than a decade, Executive Director Gene Seroka said on Wednesday.The busiest U.S. port and the No. 1 U.S. gateway for ocean trade with China logged its slowest May since the "Great Recession" of 2009.May volume fell 30% from last year after business shutdowns aimed at controlling COVID-19 infections and U.S.
Hapag-Lloyd Keeps 2020 Guidance
German container liner Hapag-Lloyd on Friday stuck with its full-year earnings guidance but warned that supply disruptions and weaker demand due to the coronavirus crisis may lead to a revision of its forecast in the second half of 2020.The number five in worldwide container shipping, Hapag-Lloyd reported lower core profits in the first quarter on higher fuel costs and a devaluation of bunker stocks at the end of the period, when oil prices began to fall in a demand slump.The developments masked a positive impact from higher transport volumes - which increased by 4.3% to over 3 million 20-foot
Hapag-Lloyd Seeks Savings to Offset Coronavirus Losses
German container line Hapag-Lloyd is to implement cost cuts to take account of the coronavirus crisis, its chief executive Rolf Habben Jansen said on Wednesday.In a call with reporters, he said the Hamburg-based firm, the world's fifth largest shipping operator, would seek cost cuts by a "mid three-digit million euro sum this year."A slump in demand and a bunching of shipments due to a disruption in global logistics meant reduced port calls and empty sailings on certain routes, while costs to handle the mismatches had risen, he said.But Hapag-Lloyd was operating from a healthy capital base and
Hapag-Lloyd Cruises Brings its Fleet Home
“Stay at home” is the global message of the moment. The fleet of the Hamburg-based cruise company Hapag-Lloyd Cruises, which would normally be sailing the seven seas, is now heading for the waters of its home port. The expedition ship, the HANSEATIC nature, will be the first to return and is expected to arrive in Hamburg, Germany, on April 20. Its sister ship, the international HANSEATIC inspiration, and the two luxury ships, the EUROPA and the international EUROPA 2, are also now on their way back to Hamburg.
COVID-19 Cuts a Swath Through Containership Charter Earnings -MSI
While the implications of COVID-19 for containership demand and freight rates are directionally clear, the time charter market often marches to its own drum.The latest Container Shipping Forecaster from Maritime Strategies International analyzes the impact of the pandemic on time charter markets in the light of reduced demand and falling fright rates.Containership time charter rates have broadly retreated in recent weeks, and since the start of 2020 the majority of benchmarks have seen earnings retreat by 10-15% - hardly a historic correction.
China's Reefer Situation Improving
Chinese port workers have made progress to move a logjam of refrigerated containers that has disrupted supplies of fresh and frozen food and pushed up freight rates outside China amid the coronavirus outbreakFrench container carrier CMA CGM told customers on Friday that the reefer plug utilization has improved in Chinese ports, and almost all reefers diverted to other ports are in the process to be loaded back to their final destination.CMA CGM said it would cancel the port congestion…
Container Shipping Firms Brace for Coronavirus Hit
Leading container shipping firm A.P. Moller-Maersk scrapped its 2020 earnings forecast on Friday, while rival Hapag-Lloyd warned of slowing growth until at least June, as the coronavirus pandemic takes a heavy toll on global tradeThe container shipping industry, a bellwether for international trade, has been blown off course by the new virus, which brought parts of China to a standstill before spreading around the world, leading container lines to re-route cargoes and reduce calls to Chinese ports.Despite lower volume growth…
Hapag-Lloyd Advises that Coronavirus to Slow Growth through H1
German container shipper Hapag-Lloyd on Friday said the coronavirus outbreak would curb business growth at least until mid-year after reporting a jump in 2019 profit and proposing a higher dividend.Larger rival Maersk on Friday also warned of a first-quarter hit from the outbreak and suspended its 2020 earnings outlook.Hapag CEO Rolf Habben Jansen said that impact from the coronavirus was impossible to determine for the time being, but the company was preparing for a blow to trade."Transport…
Maersk Records Strong Q1, but Suspends 2020 Outlook on Coronavirus Uncertainty
Cost-cutting and price rises will help Maersk deliver higher first-quarter earnings than a year ago, the shipping giant said on Friday, though it scrapped its full-year forecast due to uncertainty caused by the coronavirus pandemic.The Danish company said its guidance on earnings before interest, tax and amortization (EBITDA), previously $5.5 billion for the year, was suspended until further notice.Preliminary results showed it made first-quarter EBITDA of around $1.4 billion.Despite lower volume growth…
China's Port Jam Eases, But Reefer Rates Soar
Severe congestion at Chinese ports is easing, say officials and industry participants, although a logjam of refrigerated containers has disrupted supplies of fresh and frozen food and pushed up freight rates outside China.Thousands of refrigerated containers carrying meat, seafood and fruit from around the world to China have been stuck for weeks at the country's ports after Beijing extended its Lunar New Year holiday and cities around the nation restricted free movement to curb…
Hapag-Lloyd Raises 2019 Operating Profit by 80%
German container shipping line Hapag-Lloyd raised its 2019 operating profit by 80% to 811 million euros ($875.47 million) as it earned higher freight rates and cut costs, the Hamburg-based firm reported on Wednesday."The main drivers of the positive business developments have been improved freight rates as well as rigorous cost and revenue management," said the company, the world's fifth biggest operator, in a statement on preliminary results.Operating earnings before interest and taxes (EBIT) had previously been pegged in a target corridor between 0.5 billion and 0.9 billion euros.Earnings be
Hapag-Lloyd: Asia Business 'Overall Stable' Amid Virus Outbreak
German container shipping line Hapag-Lloyd said on Tuesday its business in Asia was "overall stable," although the coronavirus outbreak had extended the traditionally slack period around China's Lunar New Year holiday.China's efforts to control the virus had extended the normal factory shutdowns for the New Year festivities to anywhere between Feb. 8 and Feb. 14, depending on the region, a spokesman for the world's fifth largest container carrier told Reuters.However, Hapag-Lloyd's fleet was operating largely as normal…
WFW Advises TUI on $1.3Bn Take Over
London-based international law firm Watson Farley & Williams has advised TUI Cruises GmbH on its acquisition of Hapag-Lloyd Cruises from TUI AG for US$1.3bn, excluding net debt.According to the the transaction is subject to customary closing conditions and regulatory approvals and is expected to close in summer 2020. The deal includes the acquisition of HL Cruises’ luxury and expedition fleet, consisting of two five-star plus luxury vessels and three expedition cruise ships, by TUI Cruises.
Hapag-Lloyd, HHLA Form Ties
German international shipping and container transportation company Hapag-Lloyd AG and compatriot logistics and transportation company Hamburger Hafen und Logistik AG (HHLA), will be continuing their close cooperation in Hamburg for another five years.On the basis of this decision, both companies will now be able to make necessary investments and boost their overall competitiveness, said a joint press release.Both parties have also agreed to intensify their collaboration on sustainability-related issues.
Hapag-Lloyd Launches Reefer Monitoring Tool
The German company Hapag-Lloyd announced the adoption of a new real-time remote monitoring system for its reefer containers - Hapag-Lloyd LIVE.The tool increases the transparency of the cold chain by offering customers a number of data sets about the condition and location of their reefer containers.The product will initially be launched to a selected group of customers and will gradually be made available as the reefer fleet of some 100,000 containers is being outfitted with…
THE Alliance Welcomes HMM
The members of THE Alliance, Hapag-Lloyd, Ocean Network Express, and Yang Ming have welcomed Hyundai Merchant Marine (HMM) as a new core member of THE Alliance.With the US Federal Maritime Commission (FMC) acceptance of HMM membership, THE Alliance offers an attractive upgraded product package and it will be launched around April 1st, 2020.Based on the existing comprehensive network of THE Alliance, the newly en-hanced product package will offer increasing frequency particularly from South East Asia…
HMM to Launch Mega-Ships in April
South Korean logistics major Hyundai Merchant Marine (HMM) will introduce the largest container vessels of the world in April. These mega-ships will be deployed on the company’s Asia-Europe services.According to BusinessKorea HMM will put into operation a total of 12 24,000-TEU super large vessels, one per week, staring this April, the Busan New Port Terminal said on Jan. 12.The boxships are under construction at Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME).HMM will start its services as an official member of “The Alliance…
New IMO Rules Overshadow Hapag-Lloyd's Profit Outlook - CEO
Tougher rules on sulphur emissions from ships set by the International Maritime Organisation (IMO) from January burden the profit outlook for Germany's container shipping line Hapag-Lloyd this year after a good 2019, its chief executive said."This will make it difficult for us to achieve a better (2020) result," Rolf Habben Jansen told reporters in Hamburg in comments on the ban on ships using a sulphur content above 0.5% on risk of fines, which is shaking up oil and shipping.But with above-market growth rates in transport volumes in 2019…
Hapag-Lloyd Opens Center in Mauritius
German international shipping and container transportation company Hapag-Lloyd AG has opened a new Quality Service Center (QSC) in Mauritius. The QSC will explicitly serve Africa, one of Hapag-Lloyd's fastest growing markets.Quality Service Centers are an important cornerstone of Hapag-Lloyd´s Strategy 2023. They gather selected functions from different Areas under one roof, enabling synergies and delivering on the Quality Promises towards the customers.Hapag-Lloyd has already established several QSCs around the world - in Atlanta (USA)…
Xeneta's Year Ends High, Concerns Remain
Xeneta has ended 2019 with a second month of increases in long-term contracted ocean freight rates across key trading routes.According to the latest XSI Public Indices report from Xeneta global rates climbed by 0.9% in December (adding to a 0.9% rise in November). However, despite the welcome upswing, after well over a year of steady decline (with the exception of a spike in May), market confusion concerning IMO 2020 sulphur surcharges still remain.Moving in the right directionXeneta’s XSI Public Indices report utilizes over 160 million data points…