Hapag-Lloyd Cuts Losses in Q1 2013

May 20, 2013

The company reports its earlier loss significantly reduced in first quarter 2013 financial results.

Financial highlights:

  • Freight rate up 4.2% year on year
  • Slight increase in transport volume
  • Revenue growth of 3.1%
  • Loss significantly reduced
  • Rates under pressure again since April

The company reports that Although its operating environment has remained challenging, Hapag-Lloyd finished the first quarter of this year in a much better position than last year.

As expected, the Company posted a loss in what is traditionally the weakest quarter of the year for the liner shipping sector. However, it halved its loss before interest and taxes compared with Q1 2012.

Revenue came to EUR 1.65 billion in the first three months of 2013 - an increase of 3.1% on the same period of the previous year. This was mainly attributable to a rise in the average freight rate, which was 4.2% up on the previous year at USD 1,546/TEU.

“Liner shipping started 2013 on a higher level than in 2012. However, the competition remains extremely challenging. Rates have come under tangible pressure since April, especially on the important East-West routes, and competition is also becoming tougher on Latin America trades,” said Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd.

He concluded: “It is important that rates soon return to a sensible, profitable level. This is absolutely essential and in the interests of everyone who relies on a functioning, reliable maritime shipping industry - from shipping lines to shippers. We cannot afford a repeat of last year's non-existent peak season.”

 

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