File Photo: Hapag-Lloyd
By Vera Eckert and Elke Ahlswede
FRANKFURT, Nov 14 (Reuters) – Hapag-Lloyd’s CEO said on Thursday he expects continued strength in container shipping volumes, which are driven by global demand for transporting goods and seen as a proxy for trade and a health barometer for the world economy.
The volume of twenty-foot equivalent (TEU) containers moved by its 292 ships rose to 9.3 million metric tons in the nine months from January to September, up 5% from 8.9 million in the same period a year ago, the German company said.
“I don’t see much of a change there in the fourth quarter,” Hapag-Lloyd CEO Habben Jansen told Reuters after presenting nine-month earnings for the world’s fifth largest containershipping group.
Global container volumes have risen by 6.3% year-to-date, marking the highest growth rate since 2021, Hapag-Lloyd said in presentation slides for an analyst call on its results.
However, increasing costs, as commercial shipping diverts around Africa to avoid disruption in the Suez Canal amid attacks by Houthi militants, contributed to a 47% fall in Hapag-Lloyd’s net profit for the period, outstripping freight rate rises.
Hapag-Lloyd achieved average freight rates over the nine months of $1,467/TEU, which was 9% down year-on-year.
“For the time being, there is no end in sight,” Habben Jansen said of the Suez crisis.
That has left prospects for Hapag-Lloyd’s full-year earnings near 2023 levels, although forecasts were hiked last month.
Commenting on Donald Trump’s U.S. presidential election win, Habben Jansen said that positive macroeconomic impulses could be countered by the damaging effects of tariffs.
President-elect Trump made import tariffs a key pillar of his campaign to get back into the White House.
(Reporting by Vera Eckert and Elke Ahlswede; Editing by Miranda Murray and Alexander Smith)
(c) Copyright Thomson Reuters 2024.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 109,835 members that receive our newsletter.
Have a news tip? Let us know.
Twelve European countries are set to clamp down on tankers that move millions of barrels of Russian petroleum around the world — by asking to see how they’re protected against oil spills and other high-cost claims.
The EU’s 15th sanctions package against Russia for the first time targets Yamal LNG by including a carrier in service of the project. The ice-capable tanker Christophe de Margerie, one...
The European Union has unveiled its 15th package of restrictive measures, specifically targeting Putin’s shadow fleet and maritime circumvention efforts. The latest sanctions package introduces port access bans and service...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 109,835 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
