The company's second quarter operating profits more than doubled from EUR30.8m in 2012 to EUR66.7m this year on revenues of EUR1.70bn, down from EUR1.79bn in 2012.
Hapag-Lloyd attributes the result to cost cutting and a drop in the price of bunkers to $622 per tonne, compared to $694 per tonne in the same period last year. The change in bunker price was enough to offset what the company called "unsatisfactory rate levels" caused by "intense competition."
That competition caused freight rates to fall to $1,499 per teu from $1,594 in 2012, eased by an increase in volume of 2.3% to 1.39m teu.
"Rate increases are indispensable in order for liner shipping companies to return to a sound earnings situation. While we managed to implement small rate increases at the start of July, it is still not enough. Further rate increases have been announced", said Michael Behrendt, chairman of the executive board at Hapag-Lloyd.
The positive performance in the second quarter helped improve the company's first half result to a EUR72.7m loss, compared to a EUR139.7m loss in 2012. Operating results for the first half were a positive EUR13.5m, improving on a EUR68.7m loss in 2012.
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