March 28 – German shipping giant Hapag-Lloyd has announced that its 2008 operating profit rose by 19 per cent from a year ago, but expects a "considerable decline" in 2009 earnings on the back of falling global demand and weak freight rates.
The world's fifth largest shipping line registered a profit of US$285 million last year, up from $239 million in 2007, as revenue gained 4.3 per cent to $8.4 billion up from $8 billion, according to media reports. Cargo volume increased by two per cent to 5.54 million TEU and average freight rates were 13 per cent higher than in 2007. Hapag-Lloyd, whose parent TUI closed on the $6 billion sale of the carrier on Monday, lost $10.8 million in the fourth quarter as the global container market slipped deeper into recession, the company said. The carrier will draw $946 million in the near future from a credit line of up to $1.5 billion provided by TUI to seal the sale to the Hamburg-based Albert Ballin consortium, it said. TUI also retained an extra 10 per cent of Hapag-Lloyd above the originally planned 33.3 per cent, at a total cost of $1.2 billion, retaining a total interest of 43 per cent in Hapag Lloyd. The carrier will save $360 million in 2009 from canceling services, especially on the Europe/Asia routes and renegotiating or not renewing charters of container ships and other measures, said TUI chief executive Michael Frenzel. Hapag-Lloyd is also renegotiating rates with terminal operators and other suppliers including railways and feeder ship companies and will freeze recruitment. "Further rationalization measures will be decided and announced soon," said Mr Frenzel. "We expect a considerable decline in earnings" in 2009 due to lower volumes and freight rates."
No comments:
Post a Comment