Germany’s largest container shipping line Hapag-Lloyd has suffered greatly in the[ds_preview] first half of the year from freight rate development. Despite an increase in transport volume, the company has to cope with a heavy loss.
With a total of about 2.9 mill. TEU, the Hapag-Lloyd carried 5.8% more cargo as in the first six months of the previous year. After a traditionally weak first quarter in liner shipping, the upward trend in the second quarter remained below expectations. This led to an average freight of 1,424$/TEU and thus 98$/TEU less than last year’s level. The revenue achieved in the first half of the year totalled to 3.21 bill. €, 144 mill. € less than during the reference period. This development is explained by the poor rate development and the much weaker dollar. Adjusted for currency effects, revenue was thus stable (-0.1% for the same period last year).
On the cost side Hapag-Lloyd has reduced transport expenses by 79 mill. € to almost 2.9 bill. € in the first half of 2014 compared to the same period last year.
Per container, there was a decrease of 57 $ to 1,372 $. In spite of the reduced transport costs, the massive effect of the further decline in freight rates on the result could not be compensated. In the first half of 2014, Hapag-Lloyd achieved an EBITDA of 67.2 mill. € (previous year: 171.8 mill. €) and an operating result of -73.7 mill. € (previous year: 13.5 mill. €). The consolidated result of -173.3 mill. € (previous year: -72.7 mill. €) includes one-off costs for the CSAV transaction.
